[Peace-discuss] Municipal Energy Update (fwd)

[C. G. Estabrook]

[From local Green party savant John Paul Schmit.  --CGE]

---------- Forwarded message ----------

  As many of you may know, in the last couple of weeks things have moved
very quickly on the municipal energy front. Here is a quick synopsis of
what is going on:

  Currently Illinois Power (our electricity provider) is owned by a
company called Dynergy, which is not in best financial shape. Dynergy
wants to sell Illinois Power, and Exelon -- which owns ComEd -- is
interested in buying it. Exelon also wants to raise the rates it charges
for both ComEd and Illinois Power customers (assuming it buys IP).

   Normally, any such sale and rate increases need to get the approval of
the Illinois Commerce Commission (ICC), which is supposed to make sure the
sale/increase is good for consumers. Currently the approval process can
take up to 11 months, and rate increases cannot take place until 2007, and
cannot be considered until 2006. However, there is a secret bill which the
legislature will consider this week which cuts the approval process down
to 6 months or 9 months and allows the ICC to approve an early rate
increase. The legislature is meeting during the 'veto session' when they
are supposed to deal with vetoes from the governor rather than new
legislation, but it's Illinois, so what the heck. The secret legislation
changes basically every day and its exact wording is a secret, so I can't
actually tell you what it says.

  A couple of weeks ago, staff from the City of Urbana were told that
there was secret legislation, that they were not allowed to see it, and
asked the city to officially support it. The staff reported this unusual
request at a City council meeting on Monday the 20th, the News-Gazette put
it on the 21st, and it was put on the front page of the Tribune on the
22nd.

  This whole incident has the Urbana city council irritated and the
Champaign city council outraged. You may recall that the two cities had
already started talking to IP about problems with power outages, which
hamper the cities ability to attract and keep high tech businesses. The
staff and council members of the two cities now realize that we could end
up getting really jerked around in this whole process -- higher rates,
service no better.

  So, the two cities are thinking about municipal power as a way to get
out of this situation. Al and I talked at the Urbana city council meeting
on Monday the 27th, and I went to talk about it at the Champaign City
council meeting on the 28th. The city of Champaign decided to spend
$50,000 to hire a consultant who can give them solid facts about how to
take over the power grid, costs, benefits, options, etc., and they are
trying to get the City of Urbana and the University to join them - which I
think will happen.

So, please contact Naomi Jacobson and Rick Winkel and tell them to vote
against the IP/Exelon bill (no bill number yet) as it is just a way for
big utilities to avoid oversight. Also, let your city council members know
that you support municipal power...