CUB Kicks Off Campaign to Defeat ComEd Rate Hike Bill, Says Plan Could Cost Consumers $2 Billion CHICAGO, Oct. 27 /PRNewswire/ -- The Citizens Utility Board (CUB) Monday joined consumer groups from across the state to kick off a campaign to defeat rate hike legislation being pushed by ComEd -- a plan that could cost ComEd and Illinois Power customers over $2 billon in higher rates through the end of the decade. Speaking at a news conference Monday, CUB Executive Director Martin Cohen disputed ComEd claims that the bill would allow it to protect jobs and bail out Decatur-based Illinois Power Co., the downstate utility owned by Dynegy that ComEd wants to buy. "This bill would gut key consumer protections that have been in place in Illinois for 80 years and allow ComEd to lock in a rate increase it otherwise would have no chance of winning," Cohen said. "ComEd going after a rate hike is like a dog going after a bone -- we expect it. But it's up to the legislature to tell them no." Joining in the campaign against the legislation is every major consumer group in the state, including the American Association of Retired Persons (AARP), Citizen Action/Illinois, the Environmental Law and Policy Center of the Midwest, and Illinois Public Interest Research Group. ComEd is seeking quick approval of the far-reaching legislation when lawmakers reconvene in November for the six-day veto session. A hearing on the bill will be held by the House Public Utilities Committee in Springfield on Tuesday. In addition to testifying before the committee, CUB will be launching a petition drive against the bill and will be urging ComEd and Illinois Power customers to contact their state lawmakers and voice opposition to the measure. The legislation would allow state regulators to approve a long-term rate increase plan at the same time the agency considers -- in a rushed six-month proceeding -- whether to approve ComEd's takeover of Illinois Power. Along with rushing ICC review of the buyout, the bill guts the standards in current law that require rates to be "just and reasonable." Instead, the legislation would require only that the new rates promote "rate certainty," no matter how high the prices are. And, the rate hike would be locked in for four years. ComEd has acknowledged it plans to seek a rate increase if the law is approved but has said it will be a single-digit increase. Assuming ComEd seeks no more than a 9 percent hike, rates for ComEd and Illinois Power customers would increase a total of $520 million a year, or $2.1 billion over four years. Under this scenario, the plan would cost the average ComEd and Illinois Power customer about $260 in higher rates. The rate hike would begin and 2007 and last through 2010. Under current law, rates are frozen until 2006. At that time, absent new legislation, the Illinois Commerce Commission (ICC) would be required to set rates based on the standards and protections now in the law and ComEd's profits would be limited to a reasonable level. It is likely, given the glut of power expected to exist for years to come, that rates would go down. "ComEd is an extremely profitable company. The stock price of its parent company, Exelon, has quadrupled, its profits are at record levels and, without this legislation, there is no way the utility could justify a rate hike in 2007," Cohen said. "This bill is about one thing and one thing only -- locking in excessive profits for ComEd, and higher rates for consumers, into the next decade." CUB is a nonprofit, statewide utility watchdog organization created by the Illinois legislature to represent the interests of residential and small- business utility consumers. For more information on CUB, visit http://www.citizensutilityboard.org/ or call CUB's Consumer Hotline at 1-800-669-5556. DATASOURCE: Citizens Utility Board CONTACT: Pat Clark of Citizens Utility Board, +1-312-263-4282 Web site: http://www.citizensutilityboard.org/

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