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Power Bills Down -- FULL DETAILS SUNDAY ON WGIL
Electricity bills are down 8 to 10 percent from the electricity crisis 2-1/2 years ago.

This information comes from David Kolata of the Citizens Utility Board, who says a contributing factor is a decline in wholesale electricity rates since early 2007, but the main reason is the creation of the Illinois Power Agency.

When a 10-year rate freeze expired in 2007, prices went to market rate as set by a reverse auction. Consumer groups opposed that, saying there was no true competitive market -- Exelon, the state;s No. 1 generator, owns ComEd, and Ameren, the No. 2 generator, owns the various Ameren distribution companies -- and the reverse auction prices were artificially high.

Under legislation passed in 2007, the state created the Illinois Power Agency, which purchases electricity from generators on behalf of residential and small business customers. That price is considerably less than the reverse auction price, Kolata says.

Kolata was interviewed for this week's Eye on Illinois program. Hear the full interview Sunday at 6am on AM 1400 WGIL.

(Illinois Radio Network)
07 30 09 by Newsroom
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