AARP, Groups, Urge Lawmakers To Stop Utility Rate Hike Express

Overwhelming Majority of Older Illinoisans Oppose Automated Increases on their Monthly Electric and Natural Gas Bills

SPRINGFIELD, Ill., May 4, 2011 /PRNewswire-USNewswire/ -- While lawmakers in Springfield consider House Bill 14, Illinoisans 50 and older have already voted an overwhelming 'no' on legislation that would impose automated utility rate hikes on millions of consumers. Speaking on behalf of older Illinoisans, AARP today joined with representatives from the Attorney General's office and several consumer advocacy groups to urge legislators to defeat HB14 if it is called to a vote on the House floor.

Nearly 8 in 10 Illinois residents age 50 and older opposed allowing electric and natural gas companies automated rate increases to pay for infrastructure improvements, and an even larger number – 83 percent – oppose automatic rate increases approved without a full review from the Illinois Commerce Commission (ICC), according to an AARP survey.

"House Bill 14 is the wrong bill at the worst time," said AARP volunteer Mary Patton, a resident of Peoria, who spoke during a press conference today at the State Capitol. "AARP and the organizations joining us today strongly urge lawmakers to reject this one-sided attempt to bolster utility company profit margins."

HB14, introduced by State Rep. Kevin McCarthy, would eliminate the long-standing utility rate review process and allow electric and natural gas companies to impose automatic rate increases for 10 years. AARP, the Attorney General, the Citizens Utility Board and many other consumer advocates have strongly opposed the measure.

"This bill would allow electricity and gas utilities to automatically increase consumers' bills every year, guaranteeing the companies' profits while restricting regulators' ability to review and limit the costs to consumers," said Illinois Attorney General Lisa Madigan. "In these economically challenging times when all Illinois consumers are struggling to live within their means, the utilities are asking the legislature to give them excessive, unchecked increases to their rates."

Automatic rate increases will add an unfair and unwarranted burden on the wallets of all consumers, but particularly on those of limited or fixed income among the 50 plus population, who pay an average of 14 percent of their annual household income on utilities. AARP's survey found that 86 percent of older Illinoisans were concerned about the cost of electricity and natural gas going up.

"The smart grid, if done right, has the potential to save customers money," CUB Executive Director David Kolata said. "But House Bill 14, as written, is a Trojan horse, claiming to promote the smart grid, but really just a recipe to severely weaken consumer protections and slap customers across the state with yearly, automatic rate hikes."  

"Illinois consumers have the right to have their voices heard particularly on matters concerning their ability to afford basic necessities, like utilities," said William McNary, Co-Director of Citizen Action Illinois. "House Bill 14 takes that right away from consumers, leaving them defenseless against rate hikes. We are proud to join in the urgent call to the House of Representatives to vote against HB14. Illinois citizens need fair, affordable and reliable utility rates."

"No one wants to pay more and more every year on their utility bill," said Brian Imus, Director of Illinois PIRG. "That's why so many Illinoisans are making their voice heard and are demanding that there are basic consumer protections in place to make sure if there is a rate increase, it's justified."

AARP's survey also found that:

• 55 percent of those polled said that their electric bills have gone up in the last 12 months;
• 58 percent disagree or strongly disagree that their electricity company has consumers' best interests in mind;
• Nearly 80 percent believe elected officials are not doing enough to lower the costs of utility bills.

"We don't want Illinoisans to be fooled into thinking that smart grid modernization is a priority that must be financed by consumers themselves. House Bill 14 is a ploy that will destroy our rate review system, mute the voice of the consumers, and fatten utility companies' bottom lines, and it must be defeated," Patton added.

AARP is urging individuals to call toll-free 1-800-719-3020 to tell their legislators to say "NO" to HB14.

To download a copy of the full survey, please visit: http://www.aarp.org/politics-society/government-elections/info-05-2011/electric-gas-utilities-legislation-illinois.html

SOURCE AARP Illinois