Com Ed

[Controlled Chaos]

ComEd’s support of the arts could give you a real shock

 

By Chuck Goudie

Daily Herald Editorial Columnist

Posted Monday, January 08, 2007

 

 

So there is no confusion, I am not an electricity expert.

 

I do know this: if you wrap your fingers around the prongs of a plug and stick it in a socket you will get a shock.

 

If the power is working.

 

Nor am I am a utility company executive.

 

Nevertheless, I know John W. Rowe made $27,564,226 in a year as chairman of Exelon, the company that owns ComEd.

 

No, I’m just a customer who pays his monthly ComEd bill and expects the lights to go on when the switch is flipped.

 

Period.

 

Let me tell you what I don’t care about.

 

King Tut.

 

“On behalf of my colleagues and the board of directors of Exelon Corporation, I want to express how pleased we are to sponsor Tutankhamun and the Golden Age of the Pharaohs, Rowe said last May as he unveiled a King Tut exhibition at Chicago’s Field Museum. It just closed last week.

 

“Exelon, as a leader in the electric and gas industry, understands the critical importance of supporting education and the arts in the communities we serve. One of our goals is to make Chicago a better place to live and visit, and I know of no better way than bringing exhibits like this to our town.”

 

What does being a leader in the electric and gas industry have to do with supporting education and the arts? What business does the company that we pay to power our lights, TVs and air conditioners have donating some of that money to a museum for an exhibit featuring jeweled collars and glittering bracelets?

 

I’m not an accountant either, but you don’t have to be a CPA to know that the money ComEd gave for the museum exhibit is just a trickle from the surge of cash that comes in every month for our electric bills.

 

But it’s not just King Tut, even though Chairman Rowe is an armchair archaeologist who has paid millions for some Egyptian artifacts that adorn his home and office. Mr. Rowe must not believe in the Curse of King Tut’s Mummy, that says anyone who comes close to the relics will face a painful existence.

 

Exelon and ComEd pump a fortune into museums, zoos, drama groups, ballet organizations and even two charity golf tournaments. They don’t grow that money on utility poles. It comes from what all of us pay every month for their product.

 

Maybe they should include a questionnaire in our bills asking if we want them to spend anything on King Tut, the Joffrey Ballet or an outfield ad at Sox Park.

 

Com Ed President Frank Clark is quite civic-minded too. You know Frank. He’s the friendly, neighborly fellow who appears in the utility’s TV commercials walking down a quiet residential sidewalk explaining how great Com Ed is.

 

Clark’s bio states that he “led the development of the African-American Legacy Fund, a $3 million endowment in partnership with The Chicago Community Trust to broaden education, the arts and community development to meet the changing needs of the community. He serves on the Executive Committee of The Chicago Community Trust. Clark is also co-chairman of the DuSable Capital Campaign, a $24 million initiative to expand the DuSable Museum, the nation’s first museum devoted to African-American arts and culture. In addition, Clark was instrumental in revitalizing the Harold Washington Cultural Center on Chicago’s south side, which features the ComEd Theater, a 1,000-seat performing arts hall.

 

Clark serves as the chairman of the board of trustees of the Adler Planetarium and Astronomy Museum. He also serves on the board of trustees of DePaul University, the Chicago Symphony Orchestra, The University of Chicago Hospitals & Health System, and the Peggy Notebaert Nature Museum. Clark is chairman of the board of directors of the Metropolitan Family Services. He supports several organizations’ development efforts as a member of the board of directors of the Governors State University Foundation, Abraham Lincoln Presidential Library Foundation, Illinois Manufacturers Association, Big Shoulders Fund and United Way of Metropolitan Chicago.”

 

I’m no time management expert, but with all those commitments it is hard to see how Mr. Clark can put in enough hours to justify his $4,000,000+ earnings at ComEd.

 

Even with the hard work of attending to museums, boards, charities and electricity, Frank Clark found the time to host a big party for his close friend Sen. Emil Jones.

 

That is the same Emil Jones who happens to be President of the Illinois Senate. In June of 2005, state campaign disclosure records show that Clark paid for Sen. Jones’ party-under-a-tent, complete with floral arrangements and a dancing act.

 

Although Sen. Jones has since become the leading advocate for ComEd’s huge rate increase, Jones’ spokeswoman maintains that the big-top party and $200,000 in campaign donations from Exelon, Com Ed and their executives have no connection.

 

That explanation might play better in New York.

 

You know what they call the power utility there, don’t you?

 

It’s Con Ed.

[NorthSideSox72]

Let me throw this out there. If electricity were de-monopolized and competition was actually allowed in the market, then I would be OK with ComEd donating to whomever the heck they wanted. Its their choice in the competitive market place, and it would be my choice as a consumer who to buy from. Such competition would also, importantly, allow me to choose a company that produced a higher precentage of its power from renewable and/or green sources. Or, I could just choose the cheapest one. Either way, good for all consumers.

 

So the problem here really, is the monopoly. Electricity needs to be commoditized more effectively, at the consumer level (as opposed to now, where it is only partially commoditized, and at the corporate/government entity level only).

[Texsox]

There was a time when giving back to the community was valued, held in high esteem. Where personal involvement with charities was considered a noble thing. Sadly, I guess that has gone away. Do you know how many civic and cultural opportunities would fold if not for these donations? From sports leagues to fine art exhibits.

 

Texas is deregulated, we can choose from a wide range of companies. I happed to choose mine based on several factors other than price. Their environmental impact is something I watch closely, their community involvement. That is why I am a member of an Electrical Co-op.

[HuskyCaucasian]

I am sure my logic is SEVERLY flawed on many leves, but I am a proponant of the governement owning the infestucture (telephone, electric, intenet) and leasing it out to regional or local companies. THe companies must maintain the lines thought. Just a thought. Highly flawed, but interesting.

[juddling]

i have no problem with big companies doing thing s like ComEd is doing but what i don't understand is giving that money away and then turning around and crying "We need a rate hike...we don't have enough money"

 

You may be short money and what you donate may not cover it all but it ticks me off when you do that.

 

[NorthSideSox72]

There was a time when giving back to the community was valued, held in high esteem. Where personal involvement with charities was considered a noble thing. Sadly, I guess that has gone away. Do you know how many civic and cultural opportunities would fold if not for these donations? From sports leagues to fine art exhibits.

I still value it. But ComEd is a monopoly, and therefore, I have no consumer influence over their spending. Therefore, I cannot endorse it without competition.

[Texsox]

I still value it. But ComEd is a monopoly, and therefore, I have no consumer influence over their spending. Therefore, I cannot endorse it without competition.

 

If you learned that the Public Utilities Board, or whatever over site there is in Illinois, mandated that a portion of their profits be returned to the community in this way, would that change your mind?

[NorthSideSox72]

If you learned that the Public Utilities Board, or whatever over site there is in Illinois, mandated that a portion of their profits be returned to the community in this way, would that change your mind?

No.

[Texsox]

No.

 

Fair enough. Another point.

 

Shouldn't those companies that have a monopoly be among the greatest proponents of the community good and set the best example of corporate behavior? In other words shouldn't they be the examples for other companies to follow?

[EvilMonkey]

Fair enough. Another point.

 

Shouldn't those companies that have a monopoly be among the greatest proponents of the community good and set the best example of corporate behavior? In other words shouldn't they be the examples for other companies to follow?

By virtue of them being a monopoly, they act like an extreme liberal in taking the money I pay them to fund things that THEY think are worthwhile. If I wanted to fund the arts, I would fund the arts, not send my money to Com Ed to distribute to worthy causes for me. I donate enough to charity, just lower my damn electric bill.

[Texsox]

By virtue of them being a monopoly, they act like an extreme liberal in taking the money I pay them to fund things that THEY think are worthwhile. If I wanted to fund the arts, I would fund the arts, not send my money to Com Ed to distribute to worthy causes for me. I donate enough to charity, just lower my damn electric bill.

 

playing devil's advocate here, because you own your business as a sole proprietor, would it be fair then for your customers to say just lower my damn printing bill? After all it's the extra profit you make on their bill that allows you to make those donations.

 

And, forgive me if I am wrong, but don't they answer to an elected public utilities board who sets the rates they charge? It would seem that if they donated a greater percentage than most other companies, that board would step in.

[EvilMonkey]

playing devil's advocate here, because you own your business as a sole proprietor, would it be fair then for your customers to say just lower my damn printing bill? After all it's the extra profit you make on their bill that allows you to make those donations.

 

And, forgive me if I am wrong, but don't they answer to an elected public utilities board who sets the rates they charge? It would seem that if they donated a greater percentage than most other companies, that board would step in.

My customers can, and do, go somewhere else if they don't like the price. As for asking me to lower my bill, they do it all the f*cking time, since printing seems to be one of those areas where everyone thinks you can 'negotiate'. I don't really have that much of an option here with ComEd. They shouldn't be donating anything, that's the problem. If it was open season on electricity, and competition was everywhere like with long distance calling or something, they could fund all the damn mummys in Egypt for all I care. If I didn't like the rates they charged me, I could leave. Right now, i can't. As for the Utility board, they are the ones that keep telling us that ComEd doesn't need the rate hike, but yet they are getting it anyway because they supposedly need it? Who is right? If I need money for infrastructure improvements, I am not gonna go out and fund the CSO for a year. The ComEd checkbook should be closed until competition is open.

Edited January 8, 2007 by EvilMonkey

[Texsox]

What is ComEd's pricing? With open competition here in Texas the range is .12 to .16 or so. All the lines are maintained by the same monopoly that always maintained them, but you can buy the power from anyone. Electricity is a major expense here, no one has natural gas, but a few people will have propane delivered.

[NorthSideSox72]

Fair enough. Another point.

 

Shouldn't those companies that have a monopoly be among the greatest proponents of the community good and set the best example of corporate behavior? In other words shouldn't they be the examples for other companies to follow?

Best corporate behavior: ideally, yes. Community good? Not if the cost is passed on to customers. If you are a single-provider utility, you are by nature a poor choice to redstribute wealth. Therefore, anything you do in that vein, no matter how well-intentioned, is a poor use of resources.

[southsider2k5]

I can't believe ComEd in the post Enron/Refco era is getting ripped for giving back to the community. This is how capitalistic corporate efforts are supposed to run, and now they are wrong for it?

[Controlled Chaos]

http://www.citizensutilityboard.org/ciDontGetShocked.html

[Texsox]

I can't believe ComEd in the post Enron/Refco era is getting ripped for giving back to the community. This is how capitalistic corporate efforts are supposed to run, and now they are wrong for it?

 

I'm with you. No one has posted their electric rates, that would change my opinion if they were insanely higher. But anything currently in the .14 range seems fine, and if they can do that ~and~ give a little back, I'm all for it.

[southsider2k5]

I'm with you. No one has posted their electric rates, that would change my opinion if they were insanely higher. But anything currently in the .14 range seems fine, and if they can do that ~and~ give a little back, I'm all for it.

 

The reason their getting nailed by higher rates is because of a rate freeze they are coming out of, which didn't allow for smaller gradual increases. Now they are looking at bigger, more immediate increases. Its more of quality regulation at work.

[NorthSideSox72]

I can't believe ComEd in the post Enron/Refco era is getting ripped for giving back to the community. This is how capitalistic corporate efforts are supposed to run, and now they are wrong for it?

ComEd isn't corporate - that is the problem. Corporate is being a business in the free market. Electricity, in Illinois, isn't a free market. Therefore, ComEd is more like a government entity than a private firm, in many ways. And as I noted, if I wanted my money to go to the arts (which I do, to some extent), then I sure as heck don't want the electric company doing that for me. I'll do it myself, which will be more efficient and more of my choice.

 

And again, of ComEd had competition, then fine - let the free market decide. If they can turn a profit, give me electricity at a fair price and still afford King Tut, then I am OK with that.

[Texsox]

The reason their getting nailed by higher rates is because of a rate freeze they are coming out of, which didn't allow for smaller gradual increases. Now they are looking at bigger, more immediate increases. Its more of quality regulation at work.

 

What are they going from/to? I was around .11 and saw a climb to .14 in the previous year.

[NorthSideSox72]

The reason their getting nailed by higher rates is because of a rate freeze they are coming out of, which didn't allow for smaller gradual increases. Now they are looking at bigger, more immediate increases. Its more of quality regulation at work.

I do agree that the rate freeze is a bad idea. Heck, even the Speaker of the Illinois House agrees with that, but the majority of the house wants to look good to their constituents and don't care if it hurts everyone later.

 

The solution isn't more regulation - its LESS regulation.

[southsider2k5]

What are they going from/to? I was around .11 and saw a climb to .14 in the previous year.

 

I think the number was something like 22% IIRC.

 

I do agree that the rate freeze is a bad idea. Heck, even the Speaker of the Illinois House agrees with that, but the majority of the house wants to look good to their constituents and don't care if it hurts everyone later.

 

The solution isn't more regulation - its LESS regulation.

 

That's exactly where I was going. People don't seem to realize that there are unintended consiquences of regulations.

 

ComEd isn't corporate - that is the problem. Corporate is being a business in the free market. Electricity, in Illinois, isn't a free market. Therefore, ComEd is more like a government entity than a private firm, in many ways. And as I noted, if I wanted my money to go to the arts (which I do, to some extent), then I sure as heck don't want the electric company doing that for me. I'll do it myself, which will be more efficient and more of my choice.

 

And again, of ComEd had competition, then fine - let the free market decide. If they can turn a profit, give me electricity at a fair price and still afford King Tut, then I am OK with that.

 

The US/state/local governments make that same decesion everyday with your tax money. Should we get them out of the arts business as well? By the time they collect taxes, they are way more ineffecient with your money than any business ever would be.

[NorthSideSox72]

I think the number was something like 22% IIRC.

That's exactly where I was going. People don't seem to realize that there are unintended consiquences of regulations.

The US/state/local governments make that same decesion everyday with your tax money. Should we get them out of the arts business as well? By the time they collect taxes, they are way more ineffecient with your money than any business ever would be.

I don't believe the federal government should be funding arts in any case. State and local, that's different - then its a maybe, with some restraint. I have a choice in government representation, and I have a choice as a consumer in a competitive market. In the case of electricity, I have no choice. Therefore, they should not be spending my money on anything other than creating electricity. Just my opinion.

[EvilMonkey]

The US/state/local governments make that same decesion everyday with your tax money. Should we get them out of the arts business as well? By the time they collect taxes, they are way more ineffecient with your money than any business ever would be.

YES!

[southsider2k5]

BTW, I do want to point out one thing that the writer of this article completely neglects is that dispite being government regulated Com-Ed is still a business, and as such they do pay taxes. All these chartiable contributions are is tax write-offs, and as such have exactly zero effect on their bottomline, and exactly zero effect on what your electricity costs in the end.

 

I don't believe the federal government should be funding arts in any case. State and local, that's different - then its a maybe, with some restraint. I have a choice in government representation, and I have a choice as a consumer in a competitive market. In the case of electricity, I have no choice. Therefore, they should not be spending my money on anything other than creating electricity. Just my opinion.

 

 

YES!

 

Well, I will say you guys are consistant, and that's all I ask. I can respect that.