Utilities propose $500 million ln Ill. power rate relief

Reuters
May 31, 2007

NEW YORK, May 30 (Reuters) - Exelon Corp.'s Commonwealth Edison Co. said on Wednesday it would join fellow Illinois utility owner Ameren Corp. in a plan to cut power rates if the state does not mandate a rate freeze.

The three-year $500 million rate relief and consumer assistance proposal would provide $300 million for ComEd customers and $200 million for Ameren customers through 2009.

Both companies indicated they would participate in such a proposal, the terms of which are open to negotiation, as long as the General Assembly does not pass rate freeze, generation tax or other adverse legislation.

Under the proposal, ComEd would give $200 million in power rate reductions to residential consumers during the summer months of 2007 and 2008 to help ease the transition from capped electricity rates to market based rates.

The utility would also increase to $100 million from the $64 million the amount it had previously pledged to "customers most in need."

The money would come from Exelon's Generation subsidiary and other generators (about $300 million) and ComEd and Ameren (about $100 million each).

Exelon and Ameren have been fighting efforts in the Illinois legislature that would roll back electricity price increases that took effect at the beginning of the year.

Exelon has said if passed, the rollback would cost ComEd $1.4 billion annually and put it on a path toward bankruptcy.

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