Senator Don Harmon passed legislation this week that will help modernize the state’s electric utility system while maintaining critical consumer protections. Harmon's efforts have been viewed favorably throughout the state. Read the Chicago Tribune's reaction here:

http://www.chicagotribune.com/news/opinion/editorials/ct-edit-comed-20111026,0,5631581.story

Harmon released the following statement about the legislation:

"When Governor Quinn vetoed SB1652 earlier this year, I commended him and committed to fashioning a better proposal to truly safeguard Illinois consumers. The end result is legislation that will bring much-needed innovation and reliability to the system that delivers electricity to households and businesses across the state. These distribution system upgrades will create jobs throughout Illinois while other provisions in the package curtail utility corporation returns and increase ratepayer protections.

By advancing this new Smart Grid legislation -- HB 3036 -- we can address the all-to-frequent and frustrating situation where families and businesses are left wondering if the lights will stay on when a stiff wind blows. Seemingly every time the wind blows or the thunder claps. This legislation will force improvements in Chicago, Oak Park and communities throughout Illinois while also improving economic competitiveness, service delivery and environmental benefits."

Smart Grid at a Glance

Increased Reliability:

HB 3036 requires substantial investments in both new Smart Grid systems and the current distributions system as part of a multi-billion dollar effort to avoid power outages and reduce the duration of outages that do occur. If utilities do no improve their performance and reliability they will pay stiff financial penalties.

Job Creation and Retention:

HB 3036 requires the creation of nearly 2,500 new jobs and clarifies that utility companies cannot count jobs promised through previous projects. Additionally, utilities will be required to file verified quarterly statements certifying the number of jobs that have been created. For each job they fall short, they will be penalized $6,000. (This doubles the $3,000 per-job penalty included in the original SB 1652).

Reducing Corporate Returns:

HB 3036 reduces utility companies’ return on their investments. Utilities traditionally have been awarded returns near 11 percent by government regulators. HB 3036 reduces that return to 9.7 percent in the first year, well below the current 10.5 percent return endorsed by the Illinois Commerce Commission. Based on current market conditions, returns in future years will remain well below 10 percent.

Ratepayer Protections:

The legislation includes a $60 million low income energy and safety program which will provide rate relief for families, small business, non-profits and disabled veterans. This cost is paid annually by the utility companies and not passed onto consumers.