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Regulators say NO to Peoples, Nicor Gas

Elizabeth — Tue, 27 Jun 2023 11:25:04 +0000

The Illinois Commerce Commission (ICC) has ordered a $15.4 million refund for Peoples Gas customers and most recently a refund of more than $31 million for Nicor Gas customers, two votes that may signal a tougher stance towards utilities whose rampant spending has helped spark a heating-affordability crisis in Illinois. Of course, the utilities have vowed to fight the decisions in court. The Peoples Gas refund, ordered on May 18, was connected to a decision by the utility in 2017 to halt disconnections while installing a new billing system. The ICC ruled that the move led to an excessive rise in bad-debt costs. If a utility can’t collect past-due debt from customers, state law allows them to eventually pass those long-term “uncollectibles” costs onto all customers in the form of a surcharge. But the ICC reviews these costs to make sure the utilities did everything possible to keep that debt under control. In this case, the ICC voted unanimously that Peoples Gas had to refund $15.4 million of the uncollectibles recovery costs it had gotten from customers in 2018. The vote in favor of the refund actually went against the recommendation of the ICC staff and an ICC administrative law judge. The amount is set to be refunded over nine months beginning in September, but the issue could end up before the Illinois Appeals Court. In the Nicor case, the ICC ruled in June that the utility improperly charged customers $31 million in infrastructure spending in 2019. The money was collected through the controversial Qualified Infrastructure Plant (QIP) surcharge on gas bills, and the ICC ruling marked the first time regulators determined Nicor may have misspent money collected through the QIP. The surcharge, which was created by state law in 2013, will sunset at the end of this year, and consumer advocates have opposed it for years, arguing it has sparked rapidly rising gas bills. Under the law, the ICC reviews how utilities spend these surcharges that are meant to cover the cost of system upgrades, plus a profit, but can disallow spending it deems inappropriate. The Nicor vote was the latest action that may signal new commissioners recently appointed by Gov. J.B. Pritzker are ready to take a tougher, pro-consumer stance when dealing with utilities. Another example came as part of Peoples Gas’ record $402 million rate-hike request: The ICC pushed the utility to answer more questions about its troubled pipeline-replacement program. (In a recent news release with Illinois PIRG, CUB criticized the company for not answering the ICC’s questions.) Reporting on the ICC refund vote, Crain’s Chicago Business wrote that “the surprisingly harsh ruling signals that commissioners are losing patience with Peoples. Chicagoans’ heating bills have been rising relentlessly for years, in large part due to the costs of Peoples’ multibillion-dollar (pipeline-replacement) program to update all of Chicago’s gas pipes. More than one-fifth of residential customers are over 30 days behind on their gas bills, according to Peoples’ filings with the ICC.” In March, Gov. J.B. Pritzker announced three new members of the ICC: Chairman Doug Scott, Conrad Reddick and Stacey Paradis. Scott, a former legislator and Mayor of […]

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Electrifying news: Utilities offer home rebates, discounts for moving from gas to electricity

Elizabeth — Tue, 06 Jun 2023 19:17:37 +0000

By: Kate Shonk CUB Sustainable Communities Liason At almost every outreach event, CUB staff fields questions on electrification. Now more than ever, it’s clear consumers are curious about alternatives to gas, and now more than ever there are financial incentives to help them make that switch. Because electric supply can come from renewable energy sources, electrifying your home can lead to lower emissions and more affordable utility bills. (Read CUB’s blog on “What is Electrification?”) Transitioning away from gas in your own home can seem daunting, but it can start by replacing one outdated, broken or inefficient gas-powered appliance. And on top of the environmental benefits of electrification, there are new financial incentives. We compiled a list of rebates to help you begin the electrification process, but be sure to check out CUB’s Statewide Better Heat Guide for more information on cheaper and cleaner ways to fuel your home. For those in ComEd territory, check out these rebates: Replace your gas-powered clothes dryer with an electric dryer to qualify for a $40 rebate. Buy a heat pump-powered clothes dryer to qualify for a $200 rebate. Purchase an induction cooktop for a $100 rebate. Receive a discount of up to $2,000 on qualifying air source heat pumps, or a $100 discount on air source heat pump tune-ups. Receive a discount of up to a $9,000 on a geothermal (ground source) heat pump system, or a $1,275-$1,800 discount on a geothermal heat pump indoor unit replacement. Receive a discount of up to $1,350 on a mini-split heat pump, a heating and cooling source that does not require ductwork. To get started on the rebate or discount process in ComEd territory: Review the rebate application steps, purchase the appliance, and complete the application online or by email to Rebates@ComEd.com. You can also download and fill out the application. Instant coupons are also available at certain retailers. Download an instant in-store coupon and present it at checkout. For any questions, call 1-855-433-2700. For those in Ameren territory, check out these rebates: Buy an energy-efficient heat pump water heater and receive a $300 rebate. Replace your gas-powered clothes dryer with an electric dryer to receive a $50 rebate. Contact an Ameren Instant Incentives Program Ally Contractor to receive discounts on ducted air source heat pumps, ductless mini-split heat pumps and heat pump water heaters. Amounts may vary. To get started on the rebate or discount process in Ameren territory: View qualifying appliance models for electric dryers. Get an instant coupon to buy a heat pump water heater at qualifying retailers, or apply for an online rebate. For ducted air source heat pumps and ductless mini-split heat pumps, view the instant incentives fact sheet. For any questions, call 1-866-828-6918. About the author: Kate Shonk started at CUB in 2022. She serves as the main contact for grassroots outreach events and works to advocate for Illinois consumers. Kate graduated from the University of Michigan in 2020 with degrees in English and Political Science. Her favorite part about working for CUB is combining her passions for community organizing and environmental policy. In her free time, she enjoys crocheting, writing, and […]

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What is Electrification? A CUB Explainer

Elizabeth — Fri, 28 Apr 2023 15:56:24 +0000

What’s with all the buzz about electrification? CUB has a new “Better Heat” guide that explains this topic in-depth, but here’s a quick CUB explainer to help break it all down. What is electrification? Building electrification is the process of replacing fossil-fueled equipment like furnaces and natural gas stoves with their electric counterparts. Switching to electricity to run your home means that your energy can come from clean and more affordable sources like solar or wind, improve indoor air quality and help protect you from high gas costs. Why does CUB support it? CUB supports the transition to electrification because Illinoisians simply can’t afford not to. Gas is bad for our bottom lines: The volatile gas market subjects customers to recurring price spikes and high charges linked to aggressive utility spending. Currently, Illinois consumers face about $887 million in rate-hike requests by the state’s major gas utilities. These problems are felt statewide but seem to be most severe in Chicago, where about one in five customers are consistently one month or more behind on their gas bills. (Last month, we held a protest at the Peoples Gas Headquarters against their record $402 million rate-hike request.) Gas is bad for our health: There is mounting evidence that gas stoves pollute your home’s air. Sustainability think tank RMI linked the typical use of gas stoves to a 42 percent increase in rates of childhood asthma and additional health problems. Gas is bad for the planet: Heating with gas is a major contributor to greenhouse gas emissions. RMI found that 10 states account for nearly 60 percent of greenhouse gas emissions from buildings — and Illinois ranks third. Natural gas isn’t a sustainable option, either environmentally or financially, in the long run. It’s time for consumers to explore alternatives. How do we electrify? Electrification requires planning–this won’t happen overnight. But there are steps you can take now to get started. Complete your checklist of energy efficiency upgrades. CUB’s Clean Energy page has information on tips and programs to make your home more efficient. A home energy audit can help you make a checklist of improvements. Making your home as efficient as possible maximizes savings before you switch from gas. Plus, it’ll help when the time comes to purchase an electric heat pump (see below) to replace your gas heat: An energy-efficient home may require a smaller, less expensive pump. Manage your energy use. When you use energy is as important as how much you use. You can participate in “demand response” programs in which you can put off the bulk of your electricity usage to times when electricity demand is lower. By reducing peak electricity demand, these programs help make the power grid cleaner and more reliable, and they can help you save money. Consider using more renewable energy– you can do this by subscribing to a community solar offer or installing solar panels on your home. There has never been a better time to go solar. Once you’ve done these, consider switching from gas to electric appliances. Geothermal heat pumps are the most efficient method to heat and cool your homes and […]

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Get the details on geothermal heat pumps

Elizabeth — Mon, 03 Apr 2023 20:19:16 +0000

By: David Weaver Carbon-Free Buildings Coordinator The U.S. Environmental Protection Agency says that geothermal heat pumps are the most energy-efficient system to heat and cool buildings and water. But how do they work? Will they work for my home? How much money will it save me? Should I make the investment? When I was asked to research a few questions about geothermal heat pumps for a consumer, I had no idea it would lead me down a path to talking to consumers and experts across our state, visiting networked geothermal buildings and working to reduce barriers for consumers. Keep reading to learn about these incredibly efficient systems and if one might be a good fit for your home. What are geothermal heat pumps and how do they work? Heat pump systems are another method for heating and cooling your home in a more energy-efficient and cost-effective manner. Much like a refrigerator, heat pump systems utilize electricity to move heat from cool spaces to warm spaces and vice versa. In the case of geothermal heat pumps, they move heat from the ground to your home or from your home to the ground. They can even move this heat to your water providing extremely efficient water heating. Because heat pump systems move heat rather than generate it, they are a more economically sound way of warming your home. Geothermal heat pumps can reduce energy costs by up to 70 percent compared to traditional heating and cooling systems. Are they capable of keeping my home comfortable? Geothermal heat pumps are incredibly reliable and capable of ensuring comfort for homeowners year-round. Whereas furnaces and most radiators rely on burning natural gas to create heat, geothermal heat pumps simply move heat to and from the ground which is much more energy efficient. And as the ground a few feet below the surface remains in the 50–60 degree temperature range year-round, these systems are resilient to extreme weather conditions. Just be sure your installer uses the Air Conditioning Contractors of America Manuel J for heat gain-heat loss calculations. That will ensure they “right-size” your system (make it the optimal size) and perform yearly maintenance. (Got a good story about a heat pump? Reach out to CUB’s Zoe Huspen.) What’s this going to cost and save me? There are many variables when factoring in both the upfront cost and energy savings associated with installing geothermal heat pumps. The prices can vary significantly based on the home, labor costs, drilling costs and model type. However, $30,000 is a representative price for your average-sized home. Fortunately, there has never been a better time to install such a system, as there are many incentives to help reduce the cost of geothermal heat pumps. The Inflation Reduction Act has created incentives for heat pumps that can be combined with existing utility company rebates. There is a 30 percent federal renewable energy tax credit for the total cost of installation. (This tax credit is uncapped, and it can be spread over multiple tax years.) On top of that, consumers can get a $2,000 energy efficiency tax credit for heat pumps. Learn more about […]

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City of Chicago announces new building electrification plan

Elizabeth — Thu, 20 Oct 2022 19:28:17 +0000

Chicago recently announced its building electrification plan to reduce emissions in the nation’s third-largest city, where nearly 70% of the greenhouse gas emissions come from buildings. The report recommends moving to electric heat of buildings over the next 20 years. First, it would change the City’s building codes to phase out fossil gas consumption in new buildings and homes and places undergoing major renovations. Then it recommends setting incremental goals to ease the transition to full adoption. The plan outlines an equitable path for privately owned buildings and residences to make the switch and reduce their carbon footprints. Over more than a year, dozens of groups, including CUB and other members of the Illinois Clean Jobs Coalition, were part of the process that produced the report, “Developing an Equitable Building Decarbonization Strategy for Chicago.” Coalition partners Elevate and NRDC helped write the report with the City. (Learn more about building decarbonization from Elevate.) “Building electrification is an essential component to any effective, long-term plan to fight climate change and reduce costs for consumers,” CUB Executive Director David Kolata said. “CUB looks forward to helping put this plan into action.” To reduce the number of buildings that rely on fossil fuels, the plan suggests city administrators ease the approval process on energy efficiency projects and recommends that those improvements shouldn’t negatively impact property taxes on those buildings. For new construction projects that want to use natural gas during the phase-in process, the plan outlines a “fossil fuel mitigation fee” that owners can pay during construction, which will go to a fund to help lower-income homeowners retrofit their homes for electrification. “We don’t have a lot of time to address climate change, and that means dramatically reducing emissions,” Elevate Chief Executive Anne Evens told the Sun-Times. “This does provide a blueprint for moving forward.” There’s also a lot of work to do to address energy burden and make sure consumers are protected during this transition. As the Sun-Times reported, the building decarbonization plan was announced “even as utility Peoples Gas is spending billions of dollars to lay hundreds of miles of new underground pipes across the city and plans to do so through 2040.” Kolata is pleased that the report recommends giving individuals and businesses resources to help make this transition to cleaner ways of heating and that it recommends planning around how customers of Peoples Gas will be impacted. The most vulnerable customers may be the last to move away from natural gas heat, and the report said proper planning is needed to prevent them from getting “saddled with exorbitant costs,” Crain’s reported. “Skyrocketing gas prices and aggressive utility spending show that natural gas is simply unsustainable for consumers,” Kolata said. “The good news is we have technology and policy on our side. High-efficiency heat pumps offer an affordable option to heat our homes, and the technology is only getting better. Plus, the City’s report, along with other policy breakthroughs like the Climate & Equitable Jobs Act and the Inflation Reduction Act, emphasizes smart planning to make sure this transition is done in an equitable way that protects and benefits all […]

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Greenflation: Myth vs Fact

Elizabeth — Fri, 25 Mar 2022 16:38:35 +0000

Amid headlines about record inflation, critics of clean energy policy have tried to blame it for the higher heating bills and the general surge in prices–they even use the term “greenflation.” But climate-friendly policy is not the cause of the high prices. The world was already grappling with pandemic-related supply chain and labor shortages that contributed to rising sales prices. Now with the war in Ukraine, sanctions against Russia will likely help keep prices elevated on items connected to top exports – oil, wheat and metals. In the case of natural gas prices, the pandemic disruptions and shortages along with an extreme cold snap last winter and other factors have all contributed to higher heating bills. “Climate policy is not to blame,” clarifies Fatih Birol, head of the International Energy Agency. Experts explain that, if anything, clean energy policies have a deflationary effect, such as subsidies for electric vehicles and decreasing economic dependence on oil. “The result is actually a decrease in [oil] demand; which leads to lower prices,” says Clark Williams-Derry of the Institute for Energy Economics and Financial Analysis. “A fossil-fuel-based economy is fundamentally driven by volatility.” Illinois consumers have experienced that first hand, as many have seen their natural gas prices double over the past year. The latest in a series of price spikes over the years began in February of 2021. This one was caused by record cold in the Southern United States–the kind of volatile weather that’s becoming more common as climate change gets worse–that disrupted the natural gas distribution system and limited supply across the country just as heating demand shot up. Other factors have helped keep prices painfully high including increased demand as economies worldwide begin to recover from the pandemic; increased Liquid Natural Gas (LNG) exports to other parts of the world, such as Europe, keeping supply lower here; less gas exploration and well construction in recent years; increased use of gas for electricity generation last summer; and decreased gas production in the Gulf of Mexico where federal officials estimate more than 90 percent of gas production was knocked offline from Hurricane Ida last summer. The result has been devastating on our heating bills. The Energy Information Administration predicted the average US household would experience significant bill increases this year on average when compared to last year. The latest EIA statistics predict a 34.6 percent increase in Midwestern natural gas bills this winter (October through March). Other heating sources are also up: While Midwestern homes that heat with electricity are expected to pay about 3 percent more this winter, propane bills are predicted to be up about 46.5 percent and across the country heating oil bills are expected to surge by nearly 55 percent. Natural gas utilities have also played a role in the bill surge. While utility companies aren’t allowed to profit from gas supply rates, they can profit off another part of the bill, delivery rates. And they’ve been finding creative ways to increase that side of bills. For example, CUB has been fighting the Qualified Infrastructure Plant surcharge since it was introduced in 2013 as a way to rake […]

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