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CICI Legisletter

September 15, 2008
Volume 22 - Issue 19

ICC APPROVES COM-ED RATE HIKE The Illinois Commerce Commission (ICC) last week approved of Com-Ed’s request for a rate hike. In approving the roughly $270-million increase, the state’s commissioners rejected a $218-million hike recommended by an administrative judge in the case. Instead, the regulators sided with a compromise proposal agreed to by Com-Ed and the ICC. According to various news reports, Com-Ed originally asked for $360 million but brought its request down after discussions with ICC staff. This rate increase will affect all the utility’s customers, households and businesses alike. In addition, the ICC tentatively approved Com-Ed’s request for a new rate-setting mechanism that would pave the way for implementation of a “smart grid,” a tech-savvy metering system giving customers real-time information on their usage that could lead to systems allowing users to save money by curtailing power consumption during times of heavy demand.
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HOUSE APPROVES OF LOTTERY LEASE AND FUND SWEEPS EDUCATION FUNDING, STATE CONSTRUCTION PLAN INCHES CLOSER TO DEAL The House met in regular session last week and approved of a plan to privatize the states lottery for half a century to fund education and a $25-35 billion capital construction program that has been languishing in Springfield for years. This program will build roads, bridges, schools, and other infrastructure projects throughout the state. The actual project list, and its total price tag, have not yet been finalized and may not be for some time. The proposal now heads to the Senate where its future remains uncertain. The state lottery was created in 1974 to help fund public schools, and lately has earned $650 million annually for education. No lottery lease that raises less than $10 billion can be approved under the House plan. The lease would run at least 50 years but not more than 60 and the state would get 20% of the vendor's earnings and provide at least $600 million for schools. This $10 billion figure represents the funding necessary to provide debt service on long-term bonds. The first $3 billion of the lease would go into a trust fund for education, set aside to generate money from interest and ensure the state can make its annual payment to schools. The next $7 billion would go to a fund for statewide construction, creating what the Blagojevich administration claims will be hundreds of thousands of jobs. FUND SWEEPS MAY COVER SOME BUDGET CUTS The House last week also voted to restore some of the budget cuts Governor Blagojevich made this summer, which was meant to stop the closure of dozens of state parks and historic sites and save 325 state jobs. The plan approved would cover some of the cuts by sweeping money from special purposes funds to the tune of $221 million, which is far less than the $1.4 billion in cuts Blagojevich made through an amendatory veto of the budget. But the House also restored another $372 million in spending cuts and even acknowledged they have no way to pay for it.
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SENATE COMMITTEE DISCUSSES DRINKING WATER “CONTAMINENTS” Reacting to a few news reports of trace amounts of pharmaceutical drugs showing up in drinking water, the Senate Public Health Committee last week heard testimony about the safe disposal of drugs and how to keep them from entering the environment through landfills or being flushed down toilets. However, conflicting opinions surfaced about the best way to deal with the problem and whether or not a problem even exists. It's estimated that more than 4,600 tons of pharmaceutical and personal-care items go into the waste stream in the United States and in some cases end up in drinking water. The IEPA testified at the hearing that the issue of drugs in drinking water had been around for decades. Agency officials said sampling shows the presence of pharmaceuticals and personal-care products in rivers, lakes and streams but not at levels considered to be hazardous to human health. In almost all cases, the levels are in parts per trillion or higher. The IEPA also noted it runs into red tape from the U.S. Department of Drug Enforcement (DEA) involving any collection of controlled substances, which include widely used narcotics or painkillers. In reacting to this issue towards the end of the Spring Session, a legislative proposal was introduced that would have required public water supplies to be tested for the presence of contaminants (natural and synthetic hormones, chemicals in cosmetics, shampoos, shaving lotions, skin creams, flame retardants, plastics, and anti-bacterial soaps). However, an amendment was added to HB 2167 (Froehlich, D-Schaumburg) that now simply requires the IEPA to convene a task force to study this “problem.” This proposal, however, never advanced. Please note that the Chemical Industry Council of Illinois Legislator is not intended to convey legal advice or set forth all legal requirements applicable to particular circumstances. Headquarters: 1400 E. TOUHY AVE., SUITE 110, DES PLAINES, IL 60018 · TEL :(847) 544-5995 · FAX :(847) 544-5999 Springfield: 400 W. MONROE, SUITE 205, SPRINGFIELD, IL 62704 · TEL :(217) 522-5805 · FAX :(217) 522-5815
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400 W. Monroe, Suite 205 Springfield, IL 62704 Tel: 217 522-5805 • Fax: 217 522-5815	1400 E. Touhy Ave, Suite 110 Des Plaines, IL 60018 Tel: 847 544-5995 • Fax: 847 544-5999