With Illinois in an unprecedented financial crisis, Commonwealth Edison Co. has come to the table with an extraordinary offer: $500 million upfront to the state, but only if the power company gets to lock in its electric rates and profits.
Lawmakers, however, are calling it an indecent proposal, questioning whether ComEd thinks they're so desperate they'll take cash to keep consumer electric bills artificially high.
Rich had this as a subscriber-only thing this morning I am not a subscriber but I did send him an Indecent Proposal joke using just the headline...
Here is the joke
Sounds like a the Opening Line for a trailer for
Indecent Proposal Two -- Lincoln's Tomb
Joking aside from ComEd's idea it makes a lot of sense. If the state agrees to a 10.3% profit margin for ComEd it would be great for ComEd. Heck I suspect you would have the other utilities line up around the block with checks for the state if they could get a guaranteed rate.
Quinn did not rule it out Tuesday, saying he needs to see the "fine print" but is concerned about whether ComEd is hedging against future rate uncertainty.
Pat, ComEd is not offering to do this out of a kind spot in their heart. It's not even really a hedge about future rate uncertainty, it's a legislative guarantee of profits. What public utility wouldn't give their eye teeth for that.
I suspect ComEd is going to circle back with a bigger number.