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.