TO PASS A MEASURE THAT IS

NEEDED TO BAILOUT STRUGGLING

NUCLEAR POWER PLANTS.

WITHOUT THE NEW MONEY EXELON

SAYS IT MAY HAVE TO CLOSE PLANTS

IN CLINTON AND THE QUAD CITIES T

WOULD CHANGE THE WITH WAY

CUSTOMERS ARE CHARGED ADDING

DEMAND PRICING YOUR ELECTRICITY

WOULD COST MORE DURING PEEK

HOURS.

CRITICS SAY THE MEASURE COULD

SEND THE ELECTRICITY BILLS

SOARING.

HERE TO HELP US UNDERSTAND THIS

AND HOW IT COULD IMPACT YOU ARE

REPRESENTATIVE, AND CAROLINA,

CHIEF OF THE PUBLIC INTEREST

DIVISION FOR THE ILLINOIS

ATTORNEY GENERAL, HER BOSS LISA

MADIGAN HAS BEEN STRONGLY

CRITICAL OF THE PROPOSED

LEGISLATION.

AND BOB GALLO ILLINOIS STATE

DIRECTOR FOR AARP ALSO A CRITIC

OF THE BILL AND WELCOME ALL TO

"CHICAGO TONIGHT."

ROBIN GABLE WHY SHOULD ILLINOIS

CONSUMERS BE ASKED TO PAY HIGHER

BILLS?

>> WELL, LET'S TAKE A STEP BACK.

SO WHEN WE LOOK AT A

YEAR-AND-A-HALF AGO WE HAD THREE

BILLS.

WE HAD AN EXELON BILL, AND A

COMMON COMMON BILL AND THE --

COM-ED AND THE CLEAN ENERGY

BILL.

IT CREATED THE FIX THE RPS THE

RENEWABLE PORTFOLIO STANDARD AND

ALLOW INVESTMENT IN ILLINOIS AND

IT ALSO DOUBLED THE ENERGY

EFFICIENCY THAT THE STATE

PRODUCES AND ENERGY EFFICIENCY

IS OUR CHEAPEST WAY TO CREATE

RENEWABLE ENERGY.

>> THAT IS AN INTERESTING BOSTON

POLICE DEPARTMENT WHY SHOULD

ILLINOIS CONSUMERS HAVE TO PAY

HIGHER BILLS TO BAILOUT NUCLEAR

PLANTS THAT ARE STRUGGLING

ECONOMICALLY?

>> WE NEED TO LOOK HOW WE NEED

TO INCREASE RENEWABLE ENERGY IN

THE STATE.

IT IS THE FUTURE AND CLIMATE

CHANGE IS AN ISSUE AND HOW WE

NEED TO INCREASE RENEWABLE

ENERGY IN THE STATE AND I THINK

THIS BILL DOES THAT IT FIXES THE

RPS AND FIXES ENERGY EFFICIENCY

AND IT HAS SOME THINGS FOR COM

ED AND LEX LONE BUT IT ALSO

INVESTS A BILLION DOLLARS IN LOW

INCOME COMMUNITIES.

AND IT IS AN OPPORTUNITY TO

REALLY --

LIKE EVERY DECADE WE HAVE THIS

OPPORTUNITY TO MODERNIZE OUR

ENERGY PLANTS.

>> CAROLINA HOW ABOUT --

CARA HENDRICKSON, IT'S GOOD FOR

INVESTMENT AND INTERESTING IN

ENERGY, WHY NOT?

>> THE PROBLEM IS THE HERE IS

SIZE WOULD HAVE A HUGE IMPACT ON

RATEPAYERS ACROSS THE STATE OF

ILLINOIS.

WE HAVE ESTIMATED WHEN YOU ADD

UP ALL THE PROGRAMS IN HERE THAT

IT WILL COST ILLINOIS RATEPAYERS

THROUGH 2030 MORE THAN $10

BILLION.

IT IS TOO MUCH TO ASK CONSUMERS

TO PAY.

>> Mr. FIDEL MARQUZ THIS HAS

BEEN CHARACTERIZED AS THE

LARGEST RATE HIKE IN U.S.

HISTORY.

IS IT?

>> WELL, WE KEEP TALKING ABOUT

THE COST.

BUT THE BENEFITS ARE BEING

IGNORED.

>> THE QUESTION IS IS THIS GOING

TO BE THE HIGHEST RATE HIKE IN

U.S. HISTORY.

>> NO, IT WOULD NOT BE.

BECAUSE THIS BILL IS A

COMPREHENSIVE BILL THAT INCLUDES

A LOT OF BENEFITS TO THE

CUSTOMERS.

AS WE'VE SAID MANY TIMES, THE

OVERALL COST TO OUR CUSTOMERS ON

AVERAGE FOR RESIDENTIAL

CUSTOMERS FOR THE PERIOD OF THE

BILL TO 2030 WILL BE 25 CENTS A

MONTH ON AVERAGE.

25 CENTS A MONTH.

AND COMPARE THAT --

>> THE ESTIMATES THAT I'VE READ

ARE MORE IN THE $2-$3 RANGE.

AND YOU SAY THOSE ARE WRONG?

>> THOSE ARE WRONG.

>> BOB GALLO HOW EXPENSIVE IS

THIS GOING TO BE?

>> IT IS GOING TO BE EXPENSIVE

FOR PEOPLE MEMBERS THAT WE

REPRESENT AT AARP.

YOU MENTION THE DEMAND RATE.

IF YOU LIVE AT HOME OR WORK AT

HOME DURING THE DAY, WHEN ENERGY

USAGE IS THE HIGHEST YOU WILL

PAY MORE FOR THAT ENERGY.

SO IF YOU THINK OF A RETIRED

INDIVIDUAL SOMEONE UNEMPLOYED

SOMEONE WHO WORKS AT HOME SO

IT'S NOT JUST OLDER INDIVIDUALS

BUT IT'S MILLENNIALS.

AND IT'S NOT JUST RESIDENTS

AFFECTED BY THIS.

IT'S BUSINESSES AS WELL.

IT'S HOSPITALS WHOSE RATES WILL

GO UP.

WHEN A HOSPITAL'S RATES GO UP,

THEY ARE HUGE, HUGE POWER USERS.

THOSE COSTS WILL BE PASSED ALONG

IN HEALTHCARE COSTS AS WELL.

>> ROBIN RATES ARE SET BY THE

ILLINOIS COMMERCE COMMISSION AND

SOME SAY HAVING THEM DECIDED BY

THE GENERAL ASSEMBLY IS DOING AN

END RUN ON THE ICC, IS IT?

>> NO, I THINK THE ICC HAS THE

FINAL DECISION IN THIS.

I THINK THE BILL MAY BE A LITTLE

BIT TOO BIG AND THINGS WE NEED

TO LOOK AT IN THE BILL AND THE

BAILOUT FOR COAL.

AND THE SUBSIDY FOR COAL.

AND WE NEED TO LOOK AT A FEW

OTHER THINGS.

WE NEED TO LOOK AT THE DEMAND

CHARGE.

ISSUES HAVE BEEN RAISED ABOUT

THE DEMAND CHARGE AND THAT IS

SOMETHING WE NEED TO LOOK AT.

AND AMRON REPRESENTS PEOPLE FROM

PEORIA DOWN AND I DO NOT THINK

THERE IS ENOUGH ENERGY

EFFICIENCY AND ENERGY EFFICIENCY

CREATES THE JOBS.

>> THE BILL IS STILL IN

FORMATION?

>> I THINK THERE ARE ISSUES AND

THINGS WE CAN WORK ON.

>> CARA HENDRICKSON LISA MADIGAN

WAS QUOTED AS SAYING THE

LEGISLATION IS OUTRAGEOUS.

>> THE OBJECTIONS GO TO THE

SCOPE OF THE BILL.

YOU MENTIONED THAT EXELON HAS

BEEN TALKING ABOUT THE TWO

DISTRESSED NUCLEAR PLANTS.

THE PROBLEM IS THAT THE BILL HAS

BALLOONED INTO A CHRISTMAS TREE

THAT INCLUDES A VARIETY OF

DIFFERENT PROGRAMS.

REPRESENTATIVE GABLE MENTIONED A

$3 BILLION SUBSIDY FOR COAL HAS

BEEN ADDED TO THE BILL IN THE

LAST 48 HOURS.

SO OUR OBJECTIONS ARE THAT THE

BILL HAS BECOME AN OPPORTUNITY

TO LOAD IT DOWN WITH PROGRAMS

THAT THE ARE HARMFUL TO

CONSUMERS AND DO TAKE AWAY THE

DISCONGRESS OF THE ICC.

>> FIDEL MARQUZ HAS THIS BECOME

A LOOK UNDER THE CHRISTMAS TREE

SOMETHING FOR EVERYBODY?

IS THAT SOMETHING THAT IS

NECESSARY AS A MATTER OF

POLITICS?

>> CERTAINLY, THE ADDITION OF

THE COAL ASSISTANCE PART IS NEW

AND WE CERTAINLY HEARD DURING

THE HEARING YESTERDAY A LOT OF

CONCERNS ABOUT THAT.

BUT THE TIME IS NOW TO TAKE

ACTION ON THIS BILL.

THE COST OF INACTION MAY CAUSE

CUSTOMERS UP TO $1.85 A MONTH IF

THE NUCLEAR PLANTS COME DOWN AND

REPLACEMENT POWER.

>> HOW COULD THAT BE?

IN 2015 ILLINOIS PRODUCED 41%

MORE ENERGY THAN IT NEEDED AND

DEMAND HAS BEEN SHRINKING BY 1%

A YEAR SINCE 2011.

WHY NOT SHUT THE FACILITIES?

>> NOT ALL ASSETS OPERATE THE

SAME WAY.

NUCLEAR POWER PLANTS ARE

AVAILABLE 94, 95% OF THE TIME

THROUGHOUT THE YEAR.

COAL PLANTS ARE LESS.

AND WIND IS 30%.

SOLAR 50%.

YOU MAY COUNT ALL THE NAMEPLATE

RATINGS OF THE CAPACITY BUT THEY

DO NOT ALWAYS OPERATE AT THE

SAME LEVEL OF AVAILABILITY.

SO TO SAY THAT IT'S 40% YOU GOT

TO REALLY LOOK AT THE TYPE OF

PLANTS AND THE TYPE OF UNITS WE

ARE TALKING ABOUT.

>> BOB GALLO ONE OF THE

OBJECTIONS IS IF THE STATE IS

PRODUCING 40% EXCESS ENERGY

PRESUMABLY IT'S BEING SOLD TO

SOMEBODY ELSE ARE ILLINOIS

RATEPAYERS SUBSIDIZING LOWER

RATES FOR ADJOINING STATES?

>> THEE RHETT KA CALI YES.

AND IT IS THE LARGEST INCREASE

IN U.S. HISTORY AND THE BILL HAS

446 PAGES THAT DROPPED FOR THE

ASSEMBLY TO READ AND UNDERSTAND

WHAT IS IN IT WHEN IT SHOULD

HAVE STARTED WITH THE ILLINOIS

COMMERCE COMMISSION FIRST AND

THE ILLINOIS COMMERCE

COMMISSION'S RESPONSIBILITY TO

MAKE SURE THAT ANY RATE

INCREASES ARE FAIR AND BALANCED

AND TAKE THE CONSUMER INTO

CONSIDERATION.

>> ROBIN GABLES SAID THAT THE

ICC WOULD HAVE THE FINAL SAY

WOULD IT NOT?

>> THAT IS NOT WHAT WE HEARD.

THIS IS DROPPED DURING A VETO

SESSION WHICH IS INAPPROPRIATE.

THE PURPOSE OF A VETO SESSION IS

TO CONSIDER BILLS FROM THE LAST

SESSION AND TO DECIDE BY THE

GENERAL ASSEMBLY WHETHER THEY

WANT TO OVERRIDE THE BILLS OR

LET THEM MOVE FORWARD.

THIS BILL, IS SOMETHING THAT HAS

BEEN SNUCK INTO THE VETO SESSION

AND IS BEING RAMMED THROUGH THE

GENERAL ASSEMBLY WITH THE HOPES

OF PASSAGE WITHOUT PEOPLE

NOTICING.

>> HOW ABOUT THAT?

WHY PUSH THE BILL NOW

THANKSGIVING?

YOU SAW A STACK OF PAPERS 446

PAGES?

WHY NOW?

>> WE HAVE BEEN WORKING ON THE

BILL FOR A YEAR-AND-A-HALF.

THIS IS NOT A BILL THAT HAS BEEN

RUSHED.

IT'S BEEN A LONGTIME COMING AND

I THINK THE OPPORTUNITY IS NOW.

WE HAVE A NEW PRESIDENT WHO IS

NOT GOING TO BE PASSING GREAT

ENERGY POLICY AT THE NATIONAL

LEVEL.

YOU KNOW DOES NOT BELIEVE IN

CLIMATE CHANGE AND IT WILL BE

OUR RESPONSIBILITY AT THE STATE

TO COME UP WITH A MODERN ENERGY

POLICY HERE.

>> HOW ABOUT THE --

WHAT IS YOUR TAKE ON THE ISSUE

THAT THE STATE IS ALREADY

PRODUCING 41% MORE THAN IT

NEEDS, SELLING THAT EXCESS TO

OTHER STATES AND ILLINOIS

RATEPAYERS ARE IN ESSENCE

SUBSIDIZING LOWER RATES FOR

NEIGHBORING STATES.

>> IT IS AN ISSUE OF CLIMATE

CHANGE WE WANT TO INCREASE THE

RENEWABLES WE HAVE IN THE STATE.

>> AMPLIFY HOW ADDRESS HOW THE

BILL WILL DO THAT?

>> IT WOULD FIX THE RENEWABLE

PORTFOLIO STANDARD FUNDS THAT

ARE INVESTED INTO RENEWABLE

ENERGY.

THEY ARE FUNDS THAT ARE INVESTED

OVER A PERIOD OF TIME.

SO COMPANIES FEEL LIKE THEY CAN

MAKE THE INVESTMENT IN ILLINOIS.

RIGHT NOW THE COMPANIES ARE

INVESTING IN OTHER STATES.

WE ARE LOSING JOBS TO OTHER

STATES.

WE ARE LOSING AN OPPORTUNITY TO

IN THIS WHOLE NEW JOB ARENA AND

I DO NOT THINK ILLINOIS CAN

AFFORD TO DO THAT.

IT PROVIDES FOR A PAYMENT SYSTEM

THAT THEY CAN RELIABLE PAYMENT

SYSTEM THAT THEY CAN COUNT ON

AND INVEST HERE.

>> BOB GALLO THERE IS AN AN

ARRAY OF GROUPS SUPPORTIVE OF

THIS BILL FROM THE SIERRA CLUB

TO THE CITIZENS UTILITY BOARD

WHAT IS IN IT FOR THEM?

>> WHAT IS IN IT FOR THEM?

WHAT THEY DECIDE WHAT IS IN IT

FOR THEM.

WHY DO RATEPAYERS HAVE TO PAY

FOR THESE ISSUES?

EXELON HAD $30 BILLION IN

PROFITS IN 2015.

IN ORDER TO RAISE RATES TO PAY

FOR SOMETHING ELSE IT DOES NOT

MAKE SENSE.

AND JOBS?

THE ILLINOIS MANUFACTURERS

ASSOCIATION IS CONCERNED ABOUT

THIS AND ARE OPPOSED TO IT.

THEY ARE TALKING ABOUT STEEL

PLANTS THAT WILL DIP INTO THE

PROFITS BY 30%.

WHAT HAPPENS WHEN YOUR PROFITS

GO DOWN YOU LAY PEOPLE OFF.

CATERPILLAR IS CONCERNED ABOUT

THIS AND OPPOSED TO THE BILL AS

WELL.

>> FIDEL MARQUZ $30 BILLION YOUR

COMPANY MADE?

HOW MUCH IN PROFITS DOES THE

COMPANY NEED?

>> THESE ARE TWO PLANTS THAT

AREN'T IN THE PROFIT.

THEY ARE LOSING MONEY THEY ARE

LOSING MONEY --

>> THE COMPANY HAD A PROFIT OF

$30 BILLION LAST YEAR AND YOU

WANT THE RATEPAYERS TO PAY MORE.

>> THERE'S ANOTHER TO THE BILL

THAN JUST THE NUCLEAR POWER

PLANTS.

REPRESENTATIVE GABLE TALKED

ABOUT THE RENEWABLES THAT IS 300

MEGAWATTS OF SOLAR AND WIND ALL

THE ENERGY EFFICIENCY.

THIS IS JUST BEYOND MORE THAN

JUST BEYOND THE NUCLEAR POWER

PLANTS HERE.

THAT IS WHY IT IS A BROADER

COMPREHENSIVE BILL.

>> ALL RIGHT.

CARA HENDRICKSON, THE BILL WOULD

CHANGE THE WAY THAT COM ED

CHARGES FOR POWER AND DEMAND

PRICING.

OBJECTIONS?

>> STRONG OBJECTIONS.

ILLINOIS WOULD BE THE FIRST

STATE IN THE COUNTRY TO REQUIRE

RESIDENTIAL CUSTOMERS TO USE

DEMAND RATE IT WOULD CHANGE THE

WAY WE HAVE BILLED FOR

ELECTRICITY IN ILLINOIS.

WHEN YOU GET YOUR BILL IT IS IN

LARGE PART BASED UPON HOW MUCH

YOU USE.

YOU USE MORE ELECTRICITY YOUR

BILL IS HIGHER.

YOU CAN EXPECT AND ROUGHLY

ESTIMATE THE AMOUNT OF YOUR BILL

BECAUSE YOU WILL KNOW ABOUT HOW

MUCH YOU USED IN A MONTH.

YOU PAY LESS YOU USE LESS.

DEMAND RATES WOULD THROW THAT

OUT THE WINDOW.

THE PORTION OF YOUR BILL BASED

ON HOW MUCH YOU USE, IT WOULD

REPLACE IT WITH HOW MUCH YOU

USED DURING THE HIGHEST PERIOD

OF TIME MONDAY THROUGH FRIDAY.

WEEKDAY HOURS THAT YOU WILL PAY

BASED ON THAT HIGHEST POINT.

IT WILL BE DIFFICULT FOR

CUSTOMERS TO PREDICT AND

DIFFICULT FOR THEM TO CONTROL

THEIR BILLS ALL OTHER REGULATORY

COMMISSIONS ACROSS THE COUNTRY

WHO HAVE BEEN ASKED TO LOOK AT

THIS IF THIS HAD GONE TO THE ICC

OTHER STATES SAID NO WHEN

PRESENTED WITH THIS.

>> AND THE LAST WORD ON DEMAND

PRICING, ROBIN GABLE.

>> THAT IS ONE OF THE THREE

THINGS I THINK WE NEED TO LOOK

AT IN THE BILL.

AS I SAID I'VE BEEN HEARING A

LOT ABOUT IT FROM MY

CONSTITUENTS AND COLLEAGUES AND

THAT IS A CONCERN.

>> FOR THEM FIDEL MARQUZ WHAT IS

THE NEXT STEP?

>> WE ARE CONTINUING DIALOGUE

WITH ALL INTERESTED PARTIES AND

TALKING AS I MENTIONED YESTERDAY

AT THE HEARING THERE ARE THESE

OPEN ISSUES AND WE WILL CONTINUE

DISCUSSING OVER THE NEXT COUPLE

OF WEEKS.

AND LOOK TO MOVE THIS BILL

FORWARD.

>> BOB GALLO THE LAST WORD WHAT

DO YOU WANT PEOPLE TO KEEP IN

MIND?

>> KEEP IN MIND HOW THEIR

REPRESENTATIVE VOTE ON THIS.

A YES VOTE IS A VOTE FOR YOUR

INCREASED RATES.

>> AND THAT IS WHERE WE HAVE TO

LEAVE IT.

ROBIN GABLE, FIDEL MARQUZ, CARA

HENDRICKSON AND BOB GALLO THANK

YOU ALL FOR BEING HERE.