Why a freeze was a bad idea

Chicago Sun-Times Editorial
July 25, 2007

The sharply higher electric rates that started in January -- after a decade-long freeze -- sparked many angry calls for the rates to be frozen again.

But as attractive as a rate freeze sounded, power customers will come out ahead under the $1 billion rate relief deal that state leaders negotiated with the power industry. That's because ComEd was all but certain to challenge the move in court. And it would have had a pretty good case, arguing that the state was ordering it to buy power for more than it could sell it. It also would have argued the state was changing the deregulation rules in the middle of the game.

If ComEd won, the state would have been in a weaker position to negotiate. And even if it prevailed, power customers wouldn't have received any relief as the case dragged on.

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