Rate freeze would bankrupt ComEd, cripple Illinois

Daily Southtown
March 14, 2007
Letter to the Editor

I'm writing to respectfully disagree with the Daily Southtown's March 7 editorial, which argues that Illinois lawmakers should roll back and re-freeze electric rates and ban political contributions from utilities.

First, reinstituting the rate freeze on ComEd, however well-intended, would cause more problems than it would solve. Yes, it would make customers feel better for a little while. But it would have a crippling effect on our state's economy. Reinstating the electric rate freeze will put ComEd on the path to bankruptcy. Investment in our system will suffer, reliability will falter and everyone will pay the price.

Second, the situation downstate differs from what customers are experiencing in northern Illinois. ComEd has a protection feature in its rate design that ensures that the annual average increase is about 28 percent for customers who use electricity to heat their homes, helping ease them into the new rates. Some customers will see increases above the average, and some will see increases below the average. However, the vast majority are experiencing increases that are 30 percent or below. More importantly, we have programs to help those customers in need.

Third, I question the logic of singling out a utility or any other corporation for a ban on political contributions. It is important to note that many corporations, including large utilities, typically contribute to a wide range of candidates from both political parties at both the state and federal level. All those contributions are publicly recorded, as required by law. Suggesting that legislators who receive campaign contributions are unable to maintain their objectivity is insulting to our elected officials.

Illinois will be much better served by allowing the free market to determine prices.

J. Barry Mitchell
President
Commonwealth Edison

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