Feb. 21--The Citizens Utility Board is backing proposed legislation to freeze electric rates in Illinois through 2009 to head off a big increase expected next year, but Commonwealth Edison hints that could wreck the company.

CUB issued a report Monday showing that Exelon Corp., ComEd's corporate parent, is the most profitable electric utility in the country. ComEd recently won permission to purchase power at an auction in the fall, and Exelon will be one of the largest bidders.

"It's the largest potential fleecing of Illinois consumers we have ever seen," CUB Executive Director David Kolata said.

Illinois residential electric rates have been frozen for nine years. That freeze expires at the end of 2006, and power bills are expected to jump sharply.

Kolata said that is unfair to consumers, as the company's stock has increased in value by $18 billion during the freeze, while consumers have saved $3 billion.

ComEd said its net income last year was $522 million on gross revenues of $6.3 billion. Exelon reported earnings of $927 million on gross revenues of $15.4 billion.

"Exelon may be making money, but ComEd's profits are reasonable," said ComEd spokeswoman Tabrina Davis.

Davis said the company stands to lose $3 million a day next year if rates continue to be frozen, and that federal law prohibits Exelon from subsidizing ComEd.

ComEd said an extension of the rate freeze would put Illinois in the same situation as California during its 2001 energy crisis. There, utilities were forced to pay more for electricity than they could charge customers, leading to the bankruptcy of one utility and an expensive bailout by the state.

"Without the ability to recover the increased costs for power, ComEd's financial viability will be immediately threatened," said ComEd Chief Executive Frank Clark.

CUB is backing an amendment to House Bill 1944, expected to be introduced this week, which would continue the freeze for another three years. Backers say that because consumers have no choice but to buy electricity from ComEd, the company should not be allowed to profit excessively.

Exelon, which also supplies electricity and gas to the Philadelphia area and is the nation's largest operator of nuclear plants, earned $3.10 per share last year, and per-share earnings have risen every year in the last five.

Exelon's stock has increased by an average of 17 percent each year over the past five years. By comparison, the Standard & Poor's index of the nation's 500 largest companies is up less than 1 percent during that time.

The freeze legislation is expected to be co-sponsored this week by Rep. Lisa Dugan (D-Kankakee) and Rep. Elaine Nekritz, (D- Northbrook).

"The governor supports the legislation," said Abby Ottenhoff, spokeswoman for Gov. Rod Blagojevich.

rmanor@tribune.com