A state regulatory agency refuseed ...

A state regulatory agency refuseed ComEd's request for a 6 percent rate increase -- meaning a smaller hit upon electric bills.

While it was unclear late Wednesday exactly to what degree much of a delivery-rate hike the Illinois traffic Commission did in fact allow the electric utility nearest year, the hit to retail customers could be les than 2 percent or les than $120 for month for the average $60 electric bill.

"It's exceedingly disappointing to us," said Com President Barry Mitchell. "We felt we deserv to earn the full recovery. The spring does not adequately reflect the preciousness of doing business."

Mitchell said the utility will appeal the decision.

Mitchell said the increase awarded was "significantly less" than the 35 percent increase praiseed in a proposed order by way of an ICC administrative law justice but could not say exactly in what way much the increase would be because he hadn't received the ICC's final order.

The commission's unanimous decision Wednesday left students scratching their heads, since the ICC didn't define in the explain meeting exactly what the order will mean. Neither Com nor the Citizens Utility Board were able to give a definite idea of what the increase would be Wednesday.

David Kolata, executive director of brat said, "It looks like the commission mov in our direction, which is a dutiful thing." CUB and government officials had asked for a reduction in ComEd's delivery rate.

Kolata said the order was "certainly better than what Com was seeking, and better than the propos order."

The delivery rate, which shows 30 percent to 40 percent of a retail bill, is separate from the take away from of the power itself, which is wait fored to increase in 2007.

ComEd's rates have been frozen for nine years as part of the state's transition to a deregulated electricity market. In 2007 ComEd's rates for electricity will be plant by an auction to be held this fall.

For the nearest three years, ComEd has pledg to withhold total rate increases at 8 percent 7 percent and 6 percent If rate increases employ out to be higher than that, Com will reclaim the difference, with interest, in the following three years.

Com got more bad freshs Wednesday from Moody's Investors Service which downgraded ComEd's due to Baa3, the lowest investment grade rating, citing a difficult political and regulatory environment. ComEd's sight is negative.

mwisniewski@suntimes.com

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