Consumer Groups Wage Fight on ComEd's Rate Hikes & Surcharges

CHICAGO, April 2, 2008 /PRNewswire-USNewswire/ -- AARP, the Citizen's Utility Board and the Office of Illinois Attorney General Lisa Madigan today joined forces to strongly oppose ComEd's attempt to raid consumers' wallets with proposed electricity rate increases and new surcharges. With the ICC's public hearings on the issue set to begin next week, the consumer groups urged the Commission to say 'No Way!' to ComEd's proposal, which would deal a harsh blow to consumers in Northern Illinois.

"AARP stands in strong opposition to more ComEd rate hikes and surcharges -- people are already struggling with the rising costs of gas, prescriptions, groceries and other necessities -- enough is enough," said Evelyn Gooden, AARP Illinois State President. "In tough economic times, we're urging the Illinois Commerce Commission to stand up for consumers and say 'no way' to this proposal."

ComEd has requested a $361.3 million annual increase for its electric customers from the Illinois Commerce Commission. Their request includes an increase in the Customer Charge and the Meter Charge and Distribution Facilities Charge. In addition, ComEd is also seeking to apply to new surcharges, called "riders," to customers' bills.

"I do not believe ComEd needs an additional $350 million to provide reliable electric service and I certainly do not believe its customers should have to pay these unnecessary costs," said Attorney General Madigan. "I will continue to fight to ensure that utility customers pay no more than necessary for their utility service."

"Consumers are getting slammed by a slowing economy and record-high gasoline prices, and now ComEd wants to slap them with a huge rate hike the power company doesn't deserve," CUB Executive Director David Kolata said. "If there's anything the rate-hike rebellion of 2007 taught us, it's that consumer voices have an impact. These hearings are a great opportunity for you to make a difference when it comes to your electricity bill."

Riders create a fast-track for increases without the benefit of looking at the company's overall revenue to see if there are offsetting decreases, unfairly shifting the risk on to customers by allowing these unfair increases outside of a rate case audit. ComEd's proposed Riders include:

-- SMP "System Modernization Project" Adjustment Rider - Would force customers to subsidize new technological investments unrelated to basic electric service (such as a "Smart Grid"), without the benefit of a full rate case review.

-- SEA "Storm Expense Adjustment" Rider - Would increase rates for expenses related to storm damages, on top of the amount already included on customers' electric bills.

The ICC has scheduled two public hearings on ComEd's rate hikes in April, and AARP is encouraging its members and the public to attend and voice their opposition. AARP has set up an "Energy Rate Hotline" (1-800-719-3020) to connect consumers directly to the ICC.

ComEd Rate Hike Public hearing schedule:

April 9th: ICC headquarters, Michael Bilandic Building, Eight Floor, 160 N. LaSalle Street,Chicago, IL 60601, 5:30 P.M.

April 10th: Joliet, Joliet High Central, Little Teather, 201 E. Jefferson, Joliet, 7:00 P.M.

AARP is also encouraging members of the public to log online to the ICC's Website http://www.icc.illinois.gov/docket/comment/ and use the case number 07-0566 to give the Commerce Commission their public comments, or to speak out at the ICC's two public hearings.

Last January, AARP, CUB, the Office of the Attorney General and state legislators joined forces to oppose Ameren's new surcharges and $247 million rate hike proposal that would also hurt hundreds of thousands of consumers in Central and Southern Illinois. Coupled together the Ameren and ComEd hikes surcharge all but wipe out the billion dollar rate relief package won by consumers in 2007.

SOURCE AARP

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