Exelon plots Springfield power ploy
Seeks SBC-style fast track on IP deal, rates
The parent of Commonwealth Edison Co., which announced Sept. 26 that it was in talks to acquire Decatur-based Illinois Power from Texas-based Dynegy Inc., wants the General Assembly this fall to require the Illinois Commerce Commission (ICC) to review the acquisition within six months rather than the customary 11 months, sources familiar with the discussions say.
In addition, Chicago-based Exelon wants lawmakers to authorize the ICC immediately to set new power rates for ComEd and Illinois Power customers over the four-year period following 2006, when a rate freeze expires and prices might otherwise be reduced. Sources differ on whether ComEd is pushing for a rate hike or an extension of the rate freeze ? either of which would benefit it."When the rates go away in ’07, they want to lock in some rate increases now and roll it all into the merger," said a top Springfield player familiar with Exelon’s proposal, who asked not to be identified. But he added that the Legislature is likely to have trouble swallowing such a deal, having been burned in the SBC matter.
In either case, company executives made clear to state officials in discussions last week that they want the new rates set at the same time the Illinois Power acquisition is considered, assuming that Exelon and Dynegy can reach agreement on a deal, sources say.
Calling Pat Quinn!