Illinois lawmakers voted to override the governor's veto of a
bill that would allow the state's two large utilities to raise
rates for a $3.2 billion upgrade of the state's electrical
grid.
Exelon Corp.'s (EXC) Commonwealth Edison utility says its $2.6
billion plan will strengthen the northern Illinois grid from storms
and other interference and that it will allow customers to save on
their bills and will create thousands of jobs. Ameren Corp. (AEE)
has promised similar benefits to its customers in southern
Illinois.
"We intend to work closely and collaboratively with our partners
and stakeholders to bring all perspectives to bear as we work to
create an electric service model that is more reliable, more
flexible, greener and more customer-focused," ComEd President and
Chief Operating Officer Anne Pramaggiore said Thursday in a
statement.
The legislation authorizes ComEd to spend $2.6 billion over 10
years to upgrade the utility's electrical grid, fortify the system
against storms, install smart meters and implement energy
efficiency programs.
Ameren would spend about $600 million to make similar smart-grid
improvements in its southern Illinois service territory.
Gov. Pat Quinn vetoed the bill in September, saying the plan
contained "sweetheart deals" for the utilities and few benefits for
consumers.
The state Senate voted 36-19 Wednesday to override Quinn's veto,
after which the state House voted 74-42 to do the same. Lawmakers
passed a "trailer bill" earlier in the week, as an alternative to
the vetoed bill, that includes the same provisions plus concessions
from Commonwealth Edison.
The legislation "paves the way for an upgraded energy
infrastructure that will ensure better reliability while creating
more jobs within Illinois," state Sen. Mike Jacobs, a Democrat who
sponsored the override effort, said in a statement.
Quinn said that he and the state's consumers were "deeply
disappointed."
ComEd has said its smart-grid plan will raise average household
electric bills by about $3 per month. Ameren's plan is expected to
raise the average resident's utility bill by about $3.40 a
year.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468;
cassandra.sweet@dowjones.com