An Illinois appeals court has questioned the idea that Commonwealth Edison Co. faces a higher degree of risk than other utilities (and thus deserves a higher return on equity), but also has affirmed the "used and useful" status of the company's Byron 2 and Braidwood 1 & 2 nuclear units, as approved by the Illinois Commerce Commission in a 1995 rate case order, which had helped justify a $303-million increase in annual rates.
Thus, the court ruling has upheld the commission's rate base allowance for the nuclear plants, based on a "needs and economic benefits test," but has remanded the case to have the commission explain why it approved a higher equity return for ComEd than indicated by most studies without citing any specific risks faced by the company.