Illinois Gov. signs law extending smart grid cost recovery

Dive Brief:

Illinois Gov. Bruce Rauner, a Republican, last week approved a measure allowing utilities an additional two years to continue developing smart grids before having to show regulators and lawmakers that the improvements are economical.
The state's legislature passed the measure last year but it was not sent to the governor's desk until outgoing Democratic Gov. Pat Quinn had left office, for fear of a veto.
Critics of the new law say it virtually guarantees rate increases for the next two years as Commonwealth Edison and Ameren continue developing smart grid technologies

Dive Insight:

Illinois Gov. Bruce Rauner has signed a bill passed late last year that allows utilities to continue charging ratepayers for smart grid improvements for two years before the companies must submit go back to regulators to prove the programs are a good investment.

The Chicago Tribune reports ComEd, which holds considerable political clout in the state, told lawmakers it could not justify $2.6 billion in investments without guarantees that the money would be recovered quickly and reliably.

But critics, even those typically supportive of smart grid technologies, say they just want to know the investments are benefiting customers. David Kolata, executive director of the consumer advocate group Citizens Utility Board told the Tribune, "we're generally supportive of smart grid improvements, but it's too early to tell whether their full value is being maximized for consumers."

Rate increases to pay for smart grid technology had been scheduled to continue through 2017, but the new law would extend those through 2019.

The controversial bill made it to Rauner's desk through a complicated piece of legislative wrangling. Lawmakers passed the measure back in December, but Senate President John Cullerton held the bill using a parliamentary procedure to keep it off then-Gov. Pat Quinn's, who had vetoed an earlier version.

The hold was lifted after Rauner took office, but then lawmakers on the House side also held the bill for a time before sending it to his desk.