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Power play? Utilities keep funds flowing: Does
it help shape electric rates debate?
Jun 17 - McClatchy-Tribune Regional News - Mike Fitzgerald Belleville News-Democrat, Ill. Call it power politics. The biggest chunk -- $463,465 -- went to the Illinois Senate. Senate President Emil Jones Jr., D-Chicago, received $175,755 and Senate Minority Leader Frank Watson, R-Greenville, got $88,060, the records show. To supporters of rollback efforts, the utilities' strategic focus on the Senate is no accident. The utilities say they give to lawmakers who share their views and have the best interests of their customers at heart, regardless of party affiliation. Since the new rates took effect -- sending some Ameren ratepayers' bills soaring by 200 percent or more -- the resulting public outcry has led state lawmakers to try to pass bills aimed at freezing electric rates at last year's levels. Those efforts have failed in the Senate, where Jones has led the fight against a rate rollback. Jones' tally includes $29,000 from Ameren, $113,355 from Commonwealth Edison and the rest from other major power companies, a recent analysis by the Illinois Campaign for Political Reform shows. Jones has argued that a rate rollback and freeze would prove financially disastrous for ComEd and its Chicago area customers. He has denied that utilities' contributions have played a part in his opposition to the rate rollback effort. "There's no relationship between contributions and legislation," said Cindy Davidsmeyer, his spokeswoman. Unable to pass a 2008 budget by a May 31 deadline, the General Assembly is meeting in an overtime session that some observers are predicting may extend into next month. Dealing with the electricity crisis, either in the form of a rollback or a rate relief package worth $1 billion in credits, has become a top agenda item. Watson, the Senate's leading Republican, also opposes a rate freeze. His $88,060 from power companies includes $23,750 from Ameren and $39,500 from ComEd, records for 2005 and 2006 show. But Patty Schuhe, a Watson spokeswoman, noted that Ameren has given money to both Republicans and Democrats, as well as to supporters and opponents of a rate rollback. "So I think that what that tells me is obviously Ameren is a major employer in Illinois, and they are active in the governmental and political process," Schuhe said. Cindy Canary, the Illinois Campaign for Political Reform executive director, said a strong link exists between campaign donations and legislation, particularly on a hot-button issue such as electric power rates. "I think we're deluding ourselves if we think that it doesn't make a difference to have a mountain of cash on the table when the most serious policy issues are being negotiated," Canary said. Money's role in statehouse decision-making is underscored by the fact that Illinois has some of the least restrictive campaign finance rules of any state, said Canary, noting that Illinois is one of only three states -- Idaho and Virginia are the others -- that allow corporations to make unlimited donations to candidates and political committees. "When they're this wide-open you really have the opportunity to try to manipulate policy," she said. The fierce battle over electricity rates that lawmakers say has roiled the General Assembly like no other issue in decades is a byproduct of lawmaker efforts to deregulate the electricity market. In 1997, the statehouse cut electric rates, then froze them for the next nine years, hoping to entice outside electric companies to enter the Illinois market and cut rates through competition. In anticipation of the rate freeze's demise, Ameren and ComEd designed a reverse power auction that took place in September. The auction succeeded brilliantly for the power companies, whose revenues for the first quarter of the year have soared by more than 70 percent apiece, but sparked outrage among consumers who've seen their rates rise by an average of 170 percent. Ameren and ComEd have also bumped up their political contributions to state Sen. James Clayborne, D-Belle-ville, and state Rep. Tom Holbrook, D-Belleville. Clayborne and Holbrook are chairmen of the Senate and House environment and energy committees, respectively. Jones has assigned Clayborne to lead the closed-door negotiations with Ameren, ComEd's parent company Exelon and other power companies to provide a rate relief package to the hardest hit consumers. Clayborne received $23,700 in 2005 and 2006 and so far this year has collected $11,000 from utilities. Ameren gave him $14,000, much of which flowed in this year, state records show. Clayborne did not return calls. Holbrook, who has received $21,900 since 2005 from energy firms, including $7,000 from Ameren, noted that he's been a staunch advocate of a rate rollback. Nonetheless, to avoid the appearance of impropriety, Holbrook said he quit accepting power company donations. "It's a personal decision each candidate has to make," Holbrook said. The need to raise campaign dollars "taints the system," he said. "But this is the system, and you have to run for re-election." Erica Abbett, an Ameren spokeswoman, said her company donates money to "candidates who share our views and have the best interests of our customers on a broad range of issues." Jennifer Medley, an Exelon spokeswoman, said her firm supports "elected officials on a bipartisan basis at the federal and state levels as well as suburban mayors and others who hold public offices." Contact reporter Mike Fitzgerald at mfitzgerald@bnd.com or 239-2533. |