Saying your rates will still be "slightly" lower than Commonwealth Edison's isn't saying much. Having been a ComEd customer for many years, I can say they ain't cheap.In order to build a new power plant, Springfield's electric rates will rise by 33 percent over the next three years, with the first 9 percent increase taking effect in ovember, under a proposal announced Wednesday by City Water, Light and Power.
[snip]
CWLP's two Lakeside power stations, which generate about 75 megawatts of electricity, must be retired in 2010 due to their age, costs and environmental
considerations. The three units at the Dallman power station generate about 525 megawatts. CWLP's power needs grow by about 2 percent a year.
"In 2010, we are short on our ability to serve our customers on our own," said chief utilities engineer Jay Bartlett.
[snip]
When the three newest units at the Dallman power plant were built in 1968, 1972 and 1978, electric rates were increased by 53 percent, Bartlett said.CWLP, which offers some of the lowest rates in the state, believes its prices will still be competitive with those offered by private power companies across Illinois even after the 33 percent increase.
Figures released by the utility show that its rates in three years would be higher than the current rates of downstate companies such as AmerenCILCO. But the other companies are likely to raise their rates also.
And even after the rate increases, the cost of CWLP electricity would be slightly lower than Commonwealth Edison, which serves the Chicago area.
This really sucks and I fear will further diminish Springfield's appeal to new business and residents.
What I don't understand is how CWLP was able to do things so cheaply relative to other utilities in the past but can't now. Don't other utilities need new or upgraded plants? If not, why do we? Shouldn't we continue to be proportionatley cheaper?
5 comments:
Build to overcapacity.
Then sell!
CWLP isn't building because we need it, we're building because they once again want to sell electricity.
While true that we'll need new generation capacity they're building a much larger, more expensive facility than we need so we can sell excess electricity.
Forget what it cost Sprinfield consumers!
JeromeProphet
www.jeromeprophet.blogspot.com
This is kind of OT. Sorry. When you were a customer of Commonwealth Edison, did you get free light bulbs when you paid your bill? I did. When paying the bill in person, they would put a special stamp it. Depending on the amount of your bill, you could get light bulbs right then. Or, you could save up stamped bills a for a couple months and get a larger quantity of bulbs. Or, and this was the neat thing, they had specialty bulbs! - like refrigerator bulbs, oven bulbs, spotlights, and even long lasting bulbs. And these weren't just any old cheap bulbs. They were quality brands. It was the greatest thing. That's the kind of thing that got me excited about paying an electric bill. Every since then, I throw a fit when I have to shell out money for light bulbs.
You know, I remember that light bulb program but I don't think I ever took advantage of it. Much of the time I was a ComEd customer I was single and, while I didn't make a lot of money, I also didn't go through a lot of light bulbs (a four pack might last me two years).
Actually, I probably wouldn't have participated either, except for the fact that I could get to their office without going outside from my office.
Don't other utilities need new or upgraded plants?
Sure they do. But utilities aren't interested in that. Everyone wants to play the "buy and sell" game, rather than the construction and maintenance game. They are out to get a quick buck. Eventually of course, someone has to produce actual power.
I'm not the most objective observer on the construction of a new powerhouse. I'm a member of Local 193 who spent the lion's share of this year "on the book" (translation for the nontradespeople? unemployed and waiting for a job) I was unemployed for so long, that I ran out of benefits. Shortly thereafter, I ran out of health insurance bank hours, too. Thank God my five year old didn't need to see the doctor!
And that scenario is multiplied by over 100, in my (union) hall alone. Other trades had similar levels of long-term unemployment. The state budget crisis has had a devastating effect on the trades.
But----I'm also a customer of CWLP, and as such I still feel it's a good idea to build our own powerhouse. Over the long term, our rates will continue to be cheaper than the commercial utilities, even if they are close in price for a relatively short time.
We now have a medical district in the north end (I live in it). Cheaper electric rates than the surrounding areas of Central Illinois can be an important part of attracting more business and investment into the Springfield area. Look at the long run. Natural gas is being depleted. Our everyday lives are going to be more dependent on electricity as a power source. This powerhouse isn't just for 2010---it's for the next 50-70 years thereafter. CWLP supports a lot of other city functions---it's a moneymaker. In case you haven't noticed lately, many Springfield residents have been leaving the city limits for surrounding suburban areas, and depleting the city's tax base with it---call it the "Chicagoization" of Springfield. It's not just the utilities playing the "take the money and run" game.
And last but not least, think on this. As a citizen of Springfield, you do have a voice in CWLP. WE are the owners. How much voice do you have in AmerenIP? In the rates or operations of the company? AmerenIP owns several aging, decrepit nuclear plants. How cheap is it going to be to bail those out? Still want to be an Ameren customer?
Building that powerhouse is going to pump some much-needed money back into our local economy. Not just in the short term, but the long term, too. Springfield is not very good at looking at the long term. Believe it or not, the tourists at the Abraham Lincoln Museum are not going to keep us afloat. (and yeah, I was proud to be part of that project, too!)
Food for thought. Ciao!
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