posted on Tuesday, October 17, 2006 5:34 PM
by
Tracy Davis
Illinois Considers Continuation of Retail Rate Freeze
The Illinois House of Representatives' Electric Utility Oversight Committee on October 10 voted 9-4 to approve a measure, H.B. 5766, that would extend the state's currently effective retail rate freeze for three more years, through 2009. The measure will now come for a vote before the full House of Representatives, which is currently out of session until mid-November, but whose members could address it in a special session, if one is convened by Governor Rod Blagojevich.
In the past, Blagojevich has been a vocal opponent of retail competition and has indicated he would convene a special session in order to extend the rate freeze, which is currently set to expire in January 2007. Illinois utilities Commonwealth Edison and Ameren, on the other hand, have publicly opposed the rate freeze, stating recently that its continuation could force them into bankruptcy.
Pressure for an extension of the rate freeze has been mounting since last month, when Com Ed and Ameren held a controversial reverse power auction. Based on the auction results, both Com Ed and Ameren have proposed significant retail rate increases, to go into effect in 2007.