ComEd got fair value for nuke plants
Letter to the Editor,
The Daily Southtown
Jan 15, 2007
An electric rate increase went into
effect this month, after a nearly decade-long rate freeze. It is important that
our customers have the facts so they can prepare for the new rates. Phil
Kadner's column (Jan. 9, "ComEd and Emil Jones trump the public
will") does not reflect these facts and, in some cases, gets it wrong.
While ComEd's rates have increased,
we are committed to helping customers manage their energy bills. Our Customers'
Affordable Reliable Energy (CARE) program offers a variety of energy saving
programs for all our customers as well as special financial assistance for
low-income customers. It also includes an Illinois Commerce Commission-approved
plan that gives customers the option to cap the rate increase payments during
2007-09, with deferred amounts recovered from 2010-12 at a below-market
interest rate of 3.25 percent.
But the accounting
"goodwill" issue Mr. Kadner raised regarding the sale of ComEd's
nuclear plants is a complete red herring. Consistent with state law, ComEd
transferred its nuclear plants to Exelon in a transparent manner with oversight
by the ICC and the Securities and Exchange Commission. ComEd essentially
received the fair market value of the plants from Exelon. Our earnings releases
and SEC filings are in the public domain for all to see. The
"goodwill" that Mr. Kadner refers to was part of a different
transaction and is unrelated to the nuclear transfer.
Confusing the issue of our necessary
rate increases with unrelated matters does a disservice to consumers. Let's
keep the focus on the facts rather than fiction.
President
Commonwealth
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