Listening to the news the last few weeks, you'd think that the upcoming rate hikes for Ameren and other utility companies are a big surprise to the Democrats in the state legislature. Naomi Jakobsson is sponsoring legislation to stop the hikes. Mike Frerichs supports some type of legsialtion to stop them too. We knew these hikes were on the way ever since 1997. Don't you think that's enough time to prepare?
Just who has been running the show in Springfield for the last four years? We have had four years of total Democratic control of Illinois government. Blago has appointed most of the commerce commission members. The Democrats could have pushed through any type of legislation that they might want that would have resolved this issue. Now, after the legislature is out of session, we see these same Democrats bemoaning the upcoming rate hikes and no one seems to be asking any of them why they didn't do anything when they had the chance.
Chief culprit here of course is Rod Blagojevich. Next in line are the legislative leaders, Emil Jones (mentor of Mike Frerichs) and Mike Madigan. You can add Annazette Collins and James Clayborne as committee chairmen in charge of blocking utility relief legislation. Clayborne is one of Frerichs' biggest contributors.
So remember who was in charge when these rate hikes took place. And who will stay in charge if you elect them again.
And, remember just last year, when Gov. Blagojevich was starting to feel the heat from all his pro-utility policies, that when he tried to appoint a consumer advocate, Marty Cohen, to the ICC? Remember who killed that nomination?
Senate President Emil Jones, patron saint of Mike Frerichs.
Enjoy your power bill.
It must be the Democrats' fault, since they are in power when the effects of deregulation have finally caught up with us. Never mind that the Republicans were the ones who actually de-regulated the electric utilities a few years back. Hey, it worked for California, so why not here? Is it our turn for revolving blackouts yet?
Calling Emil Jones, Mike Frerich's mentor is about as plausable as calling Judy Myers an aristocrat.
Ahh Compadre Emil, I need you to make him an offer he cant refuse.
"Hey, it worked for California, so why not here? Is it our turn for revolving blackouts yet?"
this is not anything like California's plan, except for the "deregulated" name tag applied by the media.
And I don't blame Democrats for this. CC is right, the GOP is not and has not fought against this plan. The way to keep from having the revolving blackouts is to make sure power providers are incented to have plenty of power available for our state. The way to do that is to let the prices move - a market rate. The transition will be painful, but this is a positive move.
And, if you think the power companies are going to make a killing selling power at these new rates, buy their stock now and get in on the windfall.
I think there's plenty of blame to go around on this issue, but there's no denying that the Dems have had control for the last four years. They knew this was coming and did nothing. Now they want to pander to voters with knee-jerk legislation. Jakobsson's bill, if passed, will be a disaster.
Ameren has offered to stagger the increases over a long period of time (10 years, I think). But to do that, they have to be allowed to sell bonds to finance their power buying. If they're not allowed, their days of subsidizing everybody's power is over.
Environmentalists should be happy - high priced electricity will lead more people to save energy. Better light bulbs, more efficient furnaces, A/C's, water heaters, and better insulation should all result. Also, higher prices make alternative generation methods, like wind power, more competitive.
And, as a bonus, Urbana's utility tax will make even more money when the rates go up.
Anyone read Kacich's article today? He nailed it.
so what is judy myers going to do about the rate hike? anything?
sounds like Judy M. supports Naomi on this one - continuing the rate freeze until a sensible solution can be reached.
Speaking of which, anyone see Frerichs' website? How he came out in favor of HB 5766, which continues the rate freeze to protect consumers. What Mike failed to mention is that it's NAOMI's bill!
How about giving people credit for your stolen ideas, Mike? Naomi has been speaking out on this issue for years, and even filed this needed legislation this spring. The least you could have done would be to give her proper credit.
Maybe legislators should get out of the way, since they're a big part of why we're in this mess.
"Price controls are what led to gas shortages and rationing under Presidents Nixon and Carter," Bradfield stated in a written release on Monday. "The same thing will happen in Illinois under Representative Jakobsson's plan, only this time people will be without electricity for their homes. Rep. Jakobsson is not protecting consumers. She's exposing them to the same power shortages that California experienced a few years ago."
from the NG yesterday - well said by Rex.
AmerenIP is not subsidizing the Illinois consumer----get a life----read their annual report. AmerenIP will still be a vary viable company even if these current prices are frozen. Check the utilities market yourself---it is not hard. The utilitity companies are assured a profit, just as a federal contractor is assured a profit with their only requirement is to provide the product/service, most of the time.
There is both a GOP and a DEM political problems because our legislators are not willing to do anything about it. I doubt if a majority even understand the utilites system.
As for buying stock in AmerenIP because the increase is coming---you need to follow the income statements a bit if you think the investors will be getting any more that what they have received in the past.
Are we going to have less black outs if this increase goes through---don't count on it. Ameren has succeeded in raising the black out rate much above the old IP which had the worst record in Illinois.
So where is the money going if AmerenIP gets the increase, straight into their pockets in the form of more unjustified jobs, bigger pay increases for managment and maybe a token upgrade to the utility systems that feed their captive audience.
The Greens/Environmentalists are still unhappy as Illinois is one of the worst states to set up a 'push-pull' metering system so that alternative energy can be installed.
Local Voter, you are confusing a couple things. Ameren IP does not produce energy. The reverse auction was held for those companies that do actually produce energy, and that is from where the big rate increase is coming. Ameren delivers energy, and will still be subject to the same types of regulation.
The recent blackouts have been due to delivery problems, not lack of electricity in the grid. If power producers can't make any money supplying our market, you could see rolling blackouts during the summer heat waves as demand exceeds supply. That is what California saw.
As someone who actually went through those California blackouts during a 100+ degree summer, I have to say that this is an impending disaster.
Hey RSW--Ameren IP is both an energy generator and distributor. The rates AmerenIP charges are completely inconsistant. For example Ameren IP residental electrical rates between Springfield, Mattoon and Champaign for the first 300 KWH the are $6.618, $5.88 and $7.70 resepectively.
RSW---You need to read closer, I did not say the recent blackout problems were due to the lack of power on the grid.
The power producer's will cut of ST. Louis area long before Champaign as they pay considerably less that we do here in Champaign.
from www.ameren.com:
About AmerenEnergy
As competition increases in energy markets nationwide, businesses of all types are seeking energy partners they can work with to achieve their corporate energy goals.
At AmerenEnergy, we are positioned to meet those businesses' needs.
Formed in 1998, we are an independent, regional trading subsidiary of Ameren Corporation, an $18 billion asset company that provides energy services to more than 3.2 million customers in Missouri and Illinois.
In brief, AmerenEnergy is the power marketing and risk management agent for the generating assets of AmerenUE and AmerenEnergy Generating Company. AmerenEnergy also manages the load requirements for AmerenUE and AmerenCIPS.
AND
AmerenIP owns no significant generation assets. It purchases the majority of the electricity it supplies to retail customers through long-term power purchase agreements.
___________
AND, as to blackouts, no you didn't say they were caused by lack of power. But, since this deregulation only effects generation, and not delivery, blackouts caused by downed lines, etc., really don't have anything to do with this discussion.
AmerenIP is a generator but not listed as significant since it sold the Clinton Power Plant. Note that AmerenEnergy Generating Company is wholly owned subsidiary of Ameren Corporation, just like AmerenIP. As for generation capability, here is some copied text from AmerenEnergy Generating Company
The nearly 2,600-megawatt capacity of the five existing AEG power plants, plus the company's combustion turbines, represent more than 4,600 megawatts of net generating capacity for AmerenEnergy Generating Company. The power is marketed by a nonregulated affiliate, AmerenEnergy Marketing Company.
My reference to 'blackouts' was that the number has increased since AmerenIP bought IP, even if you subtract the natural causes. Interruption of service has everything to do with a discussion that is discussion on whether or not AmerenIP increases there revenue stream. We are talking about a 'Public Service' monopoly here.
Maybe you need a disclosure statement RSW with your discussion?
LV, I do realize all these companies are owned by Ameren. You wrote Ameren IP numerous times, not Ameren.
"We are talking about a ”ËœPublic Service' monopoly here."
yes, we are, but forcing the reverse auction actually moves at least the generation portion to a competitive marketplace - that is the whole point.
"Maybe you need a disclosure statement RSW with your discussion?"
I am in no way affiliated with Ameren; I don't even own any of their stock. I will agree with you that there have been some service issue with our power, but my company has actually seen an improvement in the number of flickers (which are a big deal to us) in the last year or so.
Good for your company. My small business has seen an increase in not only the outages due to non-natural events but the voltage fluctuations have made it necessary for us to install voltage conditioners on our sensitive equipment.
Nice to know that you do not work for either AmerenIP or their parent company Ameren.
my sympathies with your power issues, LV. I know how frustrating it can be. Unfortunately, no matter what happens with this new market priced power, our service issues will continue to be a problem. Power delivery must be a monopoly, and thus AmerenIP has no incentive to do any more than legally required to provide good service.
Outages? Royal drops off the grid if a sparrow farts in Flatville. I think the village board should consider "First out, last back on" as Royal's new tagline.