COMMONWEALTH EDISON v. ILLINOIS COMMERCE

Nos. 2-08-0959, 2-08-1037, 2-08-1137, 1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313.

937 N.E.2d 685 (2010)

344 Ill.Dec. 662

COMMONWEALTH EDISON COMPANY, Petitioner, v. ILLINOIS COMMERCE COMMISSION; The People of the State of Illinois ex rel. Lisa Madigan, The Attorney General; AARP; AARP Illinois; Bluestar Energy Services, Inc.; Building Owners and Managers Association of Chicago; Chicago Transit Authority; Citizens Utility Board; Chrysler, LLC; The City of Chicago; The Commercial Group (styled as such collectively from the following petitioners: Best Buy Company, Inc.; J.C. Penney Corporation, Inc.; Macy's, Inc.; Walmart Stores, Inc.); Constellation Energy Commodities Group, Inc.; Constellation Newenergy, Inc.; United States Department of Energy; International Brotherhood of Electrical Workers Local Union No. 15, AFL-CIO; Illinois Industrial Energy Consumers, a/k/a IIEC (styled as such collectively from the following petitioners: Abbott Laboratories, Inc.; Arcelormittal USA; Caterpillar, Inc.: Citgo, Inc.; Corn Products International, Inc.; Daimler Chrysler Corporation; Enbridge Energy, LP; Exxonmobil; Ford Motor Company; Merchandise Mart; Sterling Steel Company, LLC; Thermal Chicago Cooling, Inc.; Citco Inc.; General Iron Industries, Inc.); Northeast Illinois Regional Commuter Railroad Corporation, d/b/a Metra; Nucor Steel Kankakee, Inc.; The Kroger Company; The Coalition to Request Equitable Allocation of Costs Together, a/k/a "React" (styled as such collectively from the following petitioners: A. Finkl and Sons Company; Alsip Paper Condominium Association; Aux Sable Liquid Products, LP; The City of Chicago; Commerce Energy, Inc.; Flint Hills Resources, LLC; Integrys Energy Services, Inc.; Metropolitan Water Reclamation District of Greater Chicago; PDV Midwest Refining, LLC; United Airlines, Inc.; Wells Manufacturing, Inc.); Retail Energy Supply Association, a/k/a "Resa" (styled as such collectively from the following petitioners: Commerce Energy, Inc.; Consolidated Edison Solutions, Inc.; Direct Energy Services, LLC; Gexa Energy; Hess Corporation; Intergrys Energy Services, Inc.; Liberty Power Corporation; Reliant Energy Retail Services, LLC; Sempra Energy Solutions; Strategic Energy, LLC; Suez Energy Resources NA, Inc.; US Energy Savings Corporation); and University of Illinois, Respondents. The People of the State of Illinois ex rel. Lisa Madigan, The Attorney General, Petitioner, v. Illinois Commerce Commission; Commonwealth Edison Company; AARP; AARP Illinois; Bluestar Energy Services, Inc.; Building Owners And Managers Association of Chicago; Chicago Transit Authority; Citizens Utility Board; Chrysler, LLC; The City of Chicago; The Commercial Group (styled as such collectively from the following petitioners: Best Buy Company, Inc.; J.C. Penney Corporation, Inc.; Macy's, Inc.; Walmart Stores, Inc.); Constellation Energy Commodities Group, Inc.; Constellation Newenergy, Inc.; United States Department of Energy; International Brotherhood of Electrical Workers Local Union No. 15, AFL-CIO; Illinois Industrial Energy Consumers, a/k/a IIEC (styled as such collectively from the following petitioners: Abbott Laboratories, Inc.; Arcelormittal USA; Caterpillar, Inc.; Citgo, Inc.; Corn Products International, Inc.; Daimler Chrysler Corporation; Enbridge Energy, LP; Exxonmobil; Ford Motor Company; Merchandise Mart; Sterling Steel Company, LLC; Thermal Chicago Cooling, Inc.; Citco, Inc; General Iron Industries, Inc.); Northeast Illinois Regional Commuter Railroad Corporation, d/b/a Metra; Nucor Steel Kankakee, Inc.; The Kroger Company; The Coalition to Request Equitable Allocation Of Costs Together, a/k/a "React" (styled as such collectively from the following petitioners: A. Finkl and Sons Company; Alsip Paper Condominium Association; Aux Sable Liquid Products, LP; The City of Chicago; Commerce Energy, Inc.; Flint Hills Resources, LLC; Integrys Energy Services, Inc.; Metropolitan Water Reclamation District of Greater Chicago; PDV Midwest Refining, LLC; United Airlines, Inc.; Wells Manufacturing, Inc.); Retail Energy Supply Association, a/k/a "Resa" (styled as such collectively from the following petitioners: Commerce Energy, Inc.; Consolidated Edison Solutions, Inc.; Direct Energy Services, LLC; Gexa Energy; Hess Corporation; Intergrys Energy Services, Inc.; Liberty Power Corporation; Reliant Energy Retail Services, LLC; Sempra Energy Solutions; Strategic Energy, LLC; Suez Energy Resources NA, Inc.; US Energy Savings Corporation); and University of Illinois, Respondents. Citizens Utility Board, Petitioner, v. Illinois Commerce Commission; Commonwealth Edison Company; The People of the State of Illinois ex rel. Lisa Madigan, The Attorney General; AARP; AARP Illinois; Bluestar Energy Services, Inc.; Building Owners and Managers Association of Chicago; Chicago Transit Authority; Chrysler LLC; The City of Chicago; The Commercial Group (styled as such collectively from the following petitioners: Best Buy Company, Inc.; J.C. Penney Corporation, Inc.; Macy's, Inc.; Walmart Stores, Inc.); Constellation Energy Commodities Group, Inc.; Constellation Newenergy, Inc.; United States Department of Energy; International Brotherhood of Electrical Workers Local Union No. 15, AFL-CIO; Illinois Industrial Energy Consumers, a/k/a IIEC (styled as such collectively from the following petitioners: Abbott Laboratories, Inc.; Arcelormittal USA; Caterpillar, Inc.; Citgo, Inc.; Corn Products International, Inc.; Daimler Chrysler Corporation; Enbridge Energy, LP; Exxonmobil; Ford Motor Company; Merchandise Mart; Sterling Steel Company, LLC; Thermal Chicago Cooling, Inc.; Citco Inc.; General Iron Industries, Inc.); Northeast Illinois Regional Commuter Railroad Corporation, d/b/a Metra; Nucor Steel Kankakee, Inc.; The Kroger Company; The Coalition to Request Equitable Allocation of Costs Together, a/k/a "React" (styled as such collectively from the following petitioners: A. Finkl and Sons Company; Alsip Paper Condominium Association; Aux Sable Liquid Products. LP; The City of Chicago; Commerce Energy, Inc.; Flint Hills Resources, LLC; Integrys Energy Services, Inc.; Metropolitan Water Reclamation District of Greater Chicago; PDV Midwest Refining, LLC; United Airlines, Inc.; Wells Manufacturing, Inc.); Retail Energy Supply Association, a/k/a "RESA" (styled as such collectively from the following petitioners: Commerce Energy, Inc.; Consolidated Edison Solutions, Inc.; Direct Energy Services, LLC; Gexa Energy; Hess Corporation; Intergrys Energy Services, Inc.; Liberty Power Corporation; Reliant Energy Retail Services, LLC; Sempra Energy Solutions; Strategic Energy, LLC; Suez Energy Resources NA, Inc.; US Energy Savings Corporation); and University of Illinois, Respondents. The Building Owners and Managers Association of Chicago, Petitioner, v. Illinois Commerce Commission; Commonwealth Edison Company; The People of the State of Illinois ex rel. Lisa Madigan, The Attorney General; AARP; AARP Illinois; Bluestar Energy Services, Inc.; Chicago Transit Authority; Citizens Utility Board; Chrysler, The City of Chicago; The Commercial Group (styled as such collectively from the following petitioners: Best Buy Company, Inc.; J.C. Penney Corporation, Inc.; Macy's, Inc.; Walmart Stores, Inc.); Constellation Energy Commodities Group, Inc.; Constellation Newenergy, Inc.; United States Department of Energy; International Brotherhood Of Electrical Workers Local Union No. 15, AFL-CIO; Illinois Industrial Energy Consumers, a/k/a IIEC (styled as such collectively from the following petitioners: Abbott Laboratories, Inc.; Arcelormittal USA; Caterpillar, Inc.; Citgo, Inc.; Corn Products International, Inc.; Daimler Chrysler Corporation; Enbridge Energy, LP; Exxonmobil; Ford Motor Company; Merchandise Mart; Sterling Steel Company, LLC; Thermal Chicago Cooling, Inc.; Citco Inc.; General Iron Industries, Inc.); Northeast Illinois Regional Commuter Railroad Corporation, d/b/a Metra; Nucor Steel Kankakee, Inc.; The Kroger Company; The Coalition to Request Equitable Allocation of Costs Together, a/k/a "React" (styled as such collectively from the following petitioners; A. Finkl and Sons Company; Alsip Paper Condominium Association; Aux Sable Liquid Products, LP; The City of Chicago; Commerce Energy, Inc.; Flint Hills Resources, LLC; Integrys Energy Services, Inc.; Metropolitan Water Reclamation District of Greater Chicago; PDV Midwest Refining, LLC; United Airlines, Inc.; Wells Manufacturing, Inc.); Retail Energy Supply Association, a/k/a "Resa" (styled as such collectively from the following petitioners: Commerce Energy, Inc.; Consolidated Edison Solutions, Inc.; Direct Energy Services, LLC; Gexa Energy; Hess Corporation; Intergrys Energy Services, Inc.; Liberty Power Corporation; Reliant Energy Retail Services, LLC; Sempra Energy Solutions; Strategic Energy, LLC; Suez Energy Resources NA, Inc.; US Energy Savings Corporation); and University of Illinois, Respondents. Abbott Laboratories, Inc.; Arcelormittal USA; Caterpillar Inc.; Corn Products International, Inc.; Daimler Chrysler Corporation; Enbridge Energy, LP; Exxonmobil; Ford Company; Merchandise Mart; Sterling Steel Company, LLC; Thermal Chicago Cooling, Inc.; Citco, Inc.; General Iron Industries, Inc., Petitioners, v. Illinois Commerce Commission; Commonwealth Edison Company; The People of the State of Illinois ex rel. Lisa Madigan, The Attorney General; AARP; AARP Illinois; Bluestar Energy Services, Inc.; Building Owners and Managers Association of Chicago; Chicago Transit Authority; Citizens Utility Board; Chrysler, LLC; The City of Chicago; The Commercial Commercial Group (styled as such collectively from the following petitioners: Best Buy Company, Inc.; J.C. Penney Corporation, Inc.; Macy's, Inc.; Walmart Stores, Inc.); Constellation Energy Commodities Group, Inc.; Constellation Newenergy, Inc.; United States Department of Energy; International Brotherhood of Electrical Workers Local Union No. 15, AFL-CIO; Northeast Illinois Regional Commuter Railroad Corporation, d/b/a Metra; Nucor Steel Kankakee, Inc.; The Kroger Company; The Coalition to Request Equitable Allocation of Costs Together, a/k/a "React" (styled as such collectively from the following petitioners; A. Finkl and Sons Company; Alsip Paper Condominium Association; Aux Sable Liquid Products, LP; The City of Chicago; Commerce Energy, Inc.; Flint Hills Resources, LLC; Integrys Energy Services, Inc.; Metropolitan Water Reclamation District of Greater Chicago; PDV Midwest Refining, LLC; United Airlines, Inc.; Wells Manufacturing, Inc.); Retail Energy Supply Association, a/k/a "Resa" (styled as such collectively from the following petitioners: Commerce Energy, Inc.; Consolidated Edison Solutions, Inc.; Direct Energy Services, LLC; Gexa Energy; Hess Corporation; Intergrys Energy Services, Inc.; Liberty Power Corporation; Reliant Energy Retail Services, LLC; Sempra Energy Solutions; Strategic Energy, LLC; Suez Energy Resources NA, Inc.; US Energy Savings Corporation); and University of Illinois, Respondents.

Appellate Court of Illinois, Second District.

Rehearing Denied November 16, 2010.


Attorney(s) appearing for the Case

E. Glenn Ripple , John P. Ratnaswamy , Carla Scarsella , Foley & Lardner LLP, Chicago, for Commonwealth Edison Company in No. 2-08-0959.

John P. Kelliher , James E. Weging , Illinois Commerce Commission, Chicago, for Illinois Commerce Commission in Nos. 2-08-0959, 2-08-1037, 2-08-1137.

Lisa Madigan , Attorney General, Michael A. Scodro , Solicitor General, Diane M. Potts , Janice A. Dale , Karen L. Lusson , Assistant Attorneys General, Julie L. Soderna , Citizens Utility Board, Chicago, R. Eric Robertson , Lueders, Robertson & Konzen, Granite City, Conrad R. Reddick , Wheaton, for Citizens Utility Board, People ex rel. Attorney General in No. 2-08-0959.

Kenneth G. Goldin , Goldin, Hill & Associates, Brookfield, Alan R. Jenkins , Jenkins at Law, LLC, Marietta, GA, for The Commercial Group in No. 2-08-0959.

Edward R. Gower , William P. Hardy , Hinshaw & Culbertson LLP, Springfield, for Northeast Illinois Regional Commuter Railroad Corporation in No. 2-08-0959.

Richard C. Balough , Kevin J. Loughlin , Juana Barrera , Chicago Transit Authority, Chicago, for Chicago Transit Authority in No. 2-08-0959.

Michael A. Munson , Law Offices of Michael A. Munson, Chicago, for Building Owners and Managers Association of Chicago in Nos. 2-08-0959, 1-08-3054.

Paul F. Hanzlik , E. Glenn Rippie , John P. Ratnaswamy , Carla Scarsella , Foley & Lardner LLP, David M. Stahl , Eimer Stahl Klevorn & Solberg LLP, John E. Rooney , Sonnenschein, Nath & Rosenthal LLP, Darryl M. Bradford , Commonwealth Edison Company, Anastasia M. O'Brien , Richard G. Bernet , Eugene H. Bernstein , Bradley R. Perkins , Exelon Business Services Company, Chicago, for Commonwealth Edison Company in No. 2-08-1037.

Lisa Madigan , Attorney General, Diane M. Potts , Assistant Attorney General, Chicago, for Attorney General and the People in No. 2-08-1037.

Paul F. Hanzlik , Foley & Lardner LLP, David M. Stahl , Eimer Stahl Klevorn & Solberg LLP, John E. Rooney , Sonnenschein, Nath & Rosenthal LLP, Darryl M. Bradford , Commonwealth Edison Company, Chicago, for Commonwealth Edison Company in No. 2-08-1137.

Lisa Madigan , Attorney General, Michael A. Scodro , Solicitor General, Diane M. Potts , Paul Berks , Janice A. Dale , Karen L. Lusson , Assistant Attorneys General, Chicago, for the People in No. 1-08-3008.

E. Glenn Rippie , John P. Ratnaswamy , Carla Scarsella , Foley & Lardner LLP, David M. Stahl , Eimer Stahl Klevorn & Solberg LLP, Chicago, for Commonwealth Edison Company in No. 1-08-3008.

John P. Kelliher , Illinois Commerce Commission, Chicago, for Illinois Commerce Commission in Nos. 1-08-3008, 1-08-3030, 1-08-3313, 1-08-3054.

Julie L. Soderna , Citizens Utility Board, Chicago, for Citizens Utility Board in No. 1-08-3030.

R. Eric Robertson , Lueders, Robertson & Konzen, Granite City, Conrad R. Reddick , Wheaton, for Abbott Laboratories, Inc, ArcelorMittal USA, Caterpillar Inc., Chrysler Corporation, Enbridge Energy, LLP, Exxon Mobil, Ford Motor Company, General Iron Industries, Merchandise Mart, Sterling Steel Company, LLC, Thermal Chicago, University of Illinois in No. 1-08-3313.


Justice BURKE delivered the opinion of the court:

Commonwealth Edison Company (ComEd) is a public utility company that distributes electricity to consumers in northern Illinois. ComEd petitioned the Illinois Commerce Commission (Commission) to restructure and alter the rates ComEd charges, seeking a $360 million increase. ComEd calculated its revenue requirement using 2006 as an historical "test year" and included certain new distribution assets, referred to as "plant...

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