Illinois political battle over smart grid ends with an override

Illinois’ drawn-out battle over the future of the state’s electricity grid came to a close today when legislators overrode Gov. Pat Quinn’s veto of the “Energy Infrastructure Modernization Act.”

Utility company ComEd welcomed the action, saying it paved the way for its planned $2.6 billion grid upgrade that will “create thousands of jobs, improve system reliability, provide new ways for consumers to save on their energy bills and establish the most progressive accountability-based regulatory model in the country.”

Shortly before the expected override vote, the governor maintained the measure would result in “blockbuster annual rate hikes for consumers and businesses.”

Quinn vetoed Senate Bill 1652 — which allows utilities to impose annual, automatic rate hikes to pay for grid improvements — in September. He said he instead backed different grid-improvement reforms that had been proposed by the Illinois Commerce Commission.

Citing an analysis conducted earlier this year by Black & Veatch, ComEd said its smart metering plan could save customers $2.8 billion over a period of 20 years … over and above the savings from more efficient electricity use. With the grid modernization act now approved, the utility has said it could begin deploying advanced meters starting in 2012.

As amended through a trailer bill, the modernization act that came into effect with the override calls for ComEd to provide $50 million over 10 years for programs to help low-income families and seniors. Utility company Ameren will provide $10 million for such programs.

The trailer also redirects $200 million of ComEd’s planned investment toward “undergrounding” overhead power lines and adding tree-resistant overhead conductors in targeted areas. That change was suggested in the wake of repeated summer storms that caused record-breaking outages in Illinois this year.