ICC is a broken system
There is a contrary view to your editorial [“We need ICC to keep a lid on utility bills,” Tuesday] regarding the flurry of legislative efforts to sidestep the Illinois Commerce Commission. Simply put, the ICC has become an obstruction to investment, growth and commerce. It is an inefficient, lawyer-driven, regulatory bureaucracy that thrives on delay and dispenses uncertainty. It is a broken system. More importantly it has lost its vision as a non-political agency responsible for assuring Illinois has safe, reliable and plentiful energy, water and telecommunications services. It should be renamed the Anti-Commerce Commission. Here’s why.
The agency is still trying to control markets and pricing as if there had been no Internet revolution. The telecommunications world is so fluid, a consumer can change instruments and providers with ease. Retail electricity marketing is sufficiently deregulated and competitive that even municipalities have gotten into the business. Natural gas and electricity pricing is so dynamic customers have enjoyed an extended era of favorable pricing to the distress of some of the very companies AARP would have your readers believe to be villains. Meanwhile, “green” energy production and energy conservation initiatives have achieved mainstream status.
The current rub is really about the commission’s unwillingness to embrace technology, modernization of distribution systems and adequate financing to assure the people and industries of Illinois are ahead of the curve. ComEd’s adoption of “smart grid” technology on the electrical grid holds great promise for not only ComEd, but also for companies, communities and residential users. The commission had the opportunity to embrace the technology and encourage swift introduction of modernization. It whiffed.
The situation is very similar for Peoples Energy. Much of the gas distribution network in Chicago was installed 100 or more years ago. The old castiron pipes are prone to fail. When gas pipes fail, there are catastrophic incidences. Peoples Energy wants to replace the pipes. Even at 100 miles a year, it will take nearly two decades to replace the pipes. There should be no dispute that it must be done. And perhaps more swiftly than proposed.
Chicago’s infrastructure needs repair replacement and modernization. The same is true for the water, sewers and transit systems. These are expensive undertakings. It will require many years and cost billions to achieve. If we want to take pride in having a world-class city, we must invest in world-class infrastructure. It requires vision, a multiyear commitment and an acceptance of the fundamental principle that “there is no free lunch.” Doug Whitley, president & CEO,
Illinois Chamber of Commerce