Environmental, Consumer Groups Criticize ComEd's Pullout from Illinois Renewable Energy Plan

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A coalition of environmental and consumer groups on Thursday expressed outrage over Exelon/Commonwealth Edison's decision to break its commitment to implement Governor Rod Blagojevich's Sustainable Energy Plan.

CHICAGO — A coalition of environmental and consumer groups on Thursday expressed outrage over Exelon/Commonwealth Edison's decision to break its commitment to implement Governor Rod Blagojevich's Sustainable Energy Plan. The groups called on Exelon/ComEd to submit its plan to buy renewable energy and to submit the necessary tariffs to the Illinois Commerce Commission immediately.


Exelon/ComEd notified the Illinois Commerce Commission in a Sept. 6th letter that it was halting plans to implement Gov. Blagojevich's renewable energy initiative unless the State adopted an unrelated Exelon proposal that would raise electricity rates by 20 percent or more.

However, at a Chicago news conference, the coalition, including the Environmental Law & Policy Center (ELPC), Illinois Public Interest Research Group (PIRG), the Citizens Utility Board (CUB), the Sierra Club Illinois Chapter and the Illinois Environmental Council called on the Exelon/ComEd to keep their word to the Governor, the Illinois Commerce Commission and the Illinois public.


"Exelon/ComEd is holding clean, renewable energy development hostage in order to set up a large rate hike. That's just wrong," said Howard Learner, Executive Director of the Environmental Law & Policy Center. "The Governor's Sustainable Energy Plan would help reduce pollution, generate billions of dollars in economic development and create thousands of jobs, according to a Department of Commerce and Economic Opportunity study. It would also help protect consumers against volatile gas and coal prices. Exelon/ComEd should reconsider this anti-consumer, anti-environmental breach of their commitment."

In a statement Thursday, the governor said he was not deterred by Exelon/ComEd's threat.

"We will not let Exelon/ComEd's decision to pull out of the state's renewable-energy plan change our opposition to Exelon/ComEd's quest for higher electricity rates, nor will we let it deter our efforts to find alternate sources of energy," Gov. Blagojevich said. "In this time of crisis, it has become abundantly clear that we need to develop and use alternative sources of energy. I strongly urge Exelon/ComEd to reconsider their decision."


Other members of the coalition echoed the governor's words.


"Exelon/ComEd is holding the renewable-energy plan captive in an attempt to steamroll its illegal rate hike proposal past state regulators," David Kolata, CUB Director of Policy and Governmental Affairs, said. "The company has broken its promise to move forward on a plan that will reduce pollution and save consumers money."


"Exelon/ComEd is backing away from its commitment to clean, renewable energy for Illinois customers, without regard to how this decision will impact our economy and our environment," Rebecca Stanfield of Illinois Public Interest Research Group said. "Over the course of this year, Exelon/ComEd has made numerous public promises to implement the goals of the Governor's Sustainable Energy Plan. Now, at the eleventh hour, the company has decided to hold these benefits hostage to a massive, unfair rate increase. Exelon/ComEd should fulfill its clean, wind energy promises and debate its rate proposal separately on its own merits."


The goal of the Governor's renewable energy initiative was to encourage utilities statewide to use cleaner and more efficient sources of energy. Exelon/ComEd committed to the voluntary plan, and this week was scheduled to file a proposal detailing how it would buy 8 percent of its power from renewable-energy sources, such as wind turbines, by 2012.


However, the company reneged on that promise after the governor voiced opposition to a power-auction plan Exelon/ComEd wants to use to set electric rates after a state-mandated rate freeze ends next year.


CUB and other consumer advocates have warned that Exelon/ComEd's proposal would lead to a rate hike of 20 percent or more. Exelon/ComEd's decision to back out of the Sustainable Energy Plan likely jeopardizes much of the wind development in 2006 as wind developers planning to build in Illinois next year will likely send their wind turbines elsewhere. In a letter to the Illinois Commerce Commission, Gov. Blagojevich urged the Commission to reject Exelon/ComEd's auction proposal, writing that it would circumvent the law and lead to an "unjustified" rate hike.


Source: PR Newswire, Citizens Utility Board