CUB updates Archives | Citizens Utility Board https://www.citizensutilityboard.org/blog/tag/cub-updates/ Fight utility rate hikes, promote clean energy, and advocate for consumer protections in Illinois. Tue, 25 Jun 2024 19:41:22 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 https://www.citizensutilityboard.org/wp-content/uploads/2020/09/cropped-CUB_LogoBadgeAlt-32x32.png CUB updates Archives | Citizens Utility Board https://www.citizensutilityboard.org/blog/tag/cub-updates/ 32 32 The Executive Director’s 2023 End-of-Year Report https://www.citizensutilityboard.org/blog/2023/11/21/2023-end-of-year-report-for-the-citizens-utility-board/ Tue, 21 Nov 2023 11:39:28 +0000 https://www.citizensutilityboard.org/?p=38636 By Sarah Moskowitz, Executive Director, CUB SPECIAL NOTE: Support CUB with a year-end, tax-deductible donation to help work for clean energy, consumer protections and lower utility bills in Illinois in 2024, CUB’s 40th anniversary. I became executive director in June, during one of the most challenging years ever for Illinois utility customers, as we faced a record $2.9 billion in utility rate-hike requests.  “How in the world do all these companies have the gall to request all this money?” one CUB supporter asked. “I am a senior and I just can’t afford to pay for everything that is increasing.” As hard as it was to fight the rate-hike barrage, the CUB team rose to the challenge, filing thousands of pages of testimony and legal briefs, delivering thousands of petitions to state regulators, holding hundreds of free events to help consumers cut their costs, and talking to thousands of utility customers who had questions or complaints about their utility bills.  And you were with us every step of the way–in this difficult year, we couldn’t have done it without you. Thank you! Part of my job is to communicate to you what CUB has done with your generous support in 2023. Take a look at the CUB team, pictured below, and check out what  CUB leaders report: The Legal Team, Eric DeBellis, General Counsel In the last 12 months, I’ve become a new dad and CUB’s new General Counsel, challenging a record six rate-hike requests in which the big Illinois utilities pushed to raise our rates by a total of $2.9 billion.  “The work we do at CUB matters because millions of Illinoisans pay utility companies billions of dollars every year for vital services. Someone needs to hold these companies accountable,” I said when I took over for Julie Soderna after her 20-year career at CUB. Partnering with consumer groups and the Illinois Attorney General’s office, (CUB’s great) Regulatory Counsel Laura Loyd and I worked hard all year long, arguing to state regulators that the hikes should be cut by a total of $1.7 billion. In the end, the the Illinois Commerce Commission (ICC) reduced the hikes by a total of $1.6 billion in two positive rulings. In November, the ICC cut the gas rate hikes by a total of $240 million and halted the over-budget, behind-schedule Peoples Gas pipeline-replacement program until an investigation can be conducted into the management of the program. On the electric side, in December state regulators rejected the multi-year grid plans proposed by Ameren and ComEd for lacking any proof of their affordability and cut the rate hikes by a total of $1.4 billion.  In both instances, the gas and electric utilities did get rate hikes, and we never like to see that, but they received much less than what they wanted. And the ICC gave the utilities a clear message: You must be held accountable to your customers and provide more affordable service.   Thank you so much to everyone who has taken the time to sign our petitions, file public comments with the ICC, attend protests, and speak at public hearings–you all are our superpower!  […]

The post The Executive Director’s 2023 End-of-Year Report appeared first on Citizens Utility Board.

]]>
CUB Q&A: Peoria’s Power Deal https://www.citizensutilityboard.org/blog/2023/06/15/cub-qa-peorias-power-deal/ Thu, 15 Jun 2023 16:47:49 +0000 https://www.citizensutilityboard.org/?p=37549 Ameren Illinois is the electric utility that serves Central and Southern Illinois. But while Ameren will always deliver the power to your home over its wires, under state law you can choose an alternative company to supply you with electricity. (That means a company other than Ameren will purchase electricity on your behalf and charge you for it on the supply section of your Ameren bill.)  Peoria-area residents have called CUB about letters they’ve received detailing a new offer negotiated between Peoria governmental leaders and an alternative supplier named Energy Harbor. Important: You will be automatically signed up for this offer unless you opt-out by the June deadline listed on your letter. (CUB has seen two opt-out deadlines: June 23 and June 26, depending on the letter you get.) What is the new deal that Peoria leaders have negotiated? In March 2012, Peoria-area residents passed a “community aggregation” referendum that allowed local officials to seek bids from alternative suppliers to purchase electricity on behalf of residents. (Aggregation is when community leaders negotiate with an alternative supplier to set a price of electricity for residents of that community.)  For years, Peoria officials chose an alternative supplier called Homefield Energy. But the aggregation program was paused last year because high energy prices made it difficult to find reasonable pricing among suppliers.  This year, the City of Peoria and Peoria County chose Energy Harbor to be the supplier for residents who don’t opt out of the program. The new deal runs from July 2023 through December 2025. Here’s the pricing:    July 2023-July 2024: 9.95 cents per kilowatt-hour (kWh) [9.84 cents per kilowatt-hour (kWh) + a 0.106 cents per kWh capacity charge] August 2024-July 2025: Unknown [9.84 cents per kilowatt-hour (kWh) PLUS a per kWh capacity charge that is not yet known]   August 2025-December 2025: Unknown [9.84 cents per kilowatt-hour (kWh) PLUS a per kWh capacity charge that is not yet known]   How does this price compare to Ameren Illinois’ supply price? It’s impossible to know how the Energy Harbor offer will compare with Ameren Illinois’ supply price in the future. But we can compare the two residential supply prices this summer:  Energy Harbor: 9.95 cents per kWh* Ameren Illinois: 7.877 cents per kWh (Note: This is Ameren’s residential price. Energy Harbor says Ameren’s small-business price is 9.645 cents per kWh.) *Energy Harbor’s supply price is about 26 percent higher than Ameren Illinois’ supply price through September. That means with Energy Harbor you would pay roughly $1.75-$2 more for every 100 kWh of electricity you use this summer. We don’t know exactly what Ameren’s price will be on Oct. 1.  Will I save by switching to Energy Harbor? While we don’t know how Energy Harbor’s offer will compare with Ameren Illinois’ price after Oct. 1, we do know that the alternative supplier offer is about 26 percent higher than Ameren’s summer supply rate through September. So you will pay more with the Energy Harbor aggregation offer this summer.  By going with Energy Harbor, you are betting that in the future Ameren’s supply price will go higher than Energy Harbor’s price. That may or may […]

The post CUB Q&A: Peoria’s Power Deal appeared first on Citizens Utility Board.

]]>
CUB testimony: State regulators should slash Nicor Gas’ record rate-hike request https://www.citizensutilityboard.org/blog/2023/05/02/state-regulators-should-slash-nicor-gas-record-rate-hike/ Tue, 02 May 2023 22:30:13 +0000 https://www.citizensutilityboard.org/?p=37211 Nicor Gas’ record $321 million rate-hike request includes an excessive profit rate for corporate shareholders and should be slashed by at least $106.5 million, according to expert testimony CUB filed Tuesday. (Read our news release.) “Nicor’s rate-hike request is unjust and unreasonable–it will only be a hardship for customers, and it should be gutted,” CUB Executive Director David Kolata said. “We know consumers are struggling–we hear from them every day. With climate change getting worse and customers having a harder and harder time paying their bills, we can’t afford to burn so much money on an expensive fossil fuel like gas that will soon be obsolete.” Kolata urged Nicor customers to visit CUBHelpCenter.com to sign a petition to the Illinois Commerce Commission (ICC) against the proposed increase. On January 3, Nicor Gas filed for a company-record $321 million rate hike with the ICC–pushing to increase delivery rates by an average of $9.28 a month. It would be the latest hardship for Nicor customers, who have endured a five-year spending spree from the utility. Since 2018, Nicor has successfully pushed for three rate hikes that raised delivery charges by a punishing 77 percent, or $500 million. In that same five-year period, 2018-2022, Nicor’s parent company, Southern Co., has raked in $16 billion in profits. Consumer advocates have sounded the alarm in 2023, as major Illinois gas and electric utilities are pushing for a record six rate hikes totaling $2.8 billion. In response to this unprecedented attack, several groups and agencies are challenging the increases, including the Illinois Attorney General’s Office, Environmental Defense Fund, Natural Resources Defense Council, Illinois PIRG, the City of Chicago and CUB. In the Nicor case, CUB, the Illinois Industrial Energy Consumers (IIEC) group, and Community Development Corporation of Pembroke-Hopkins Park partnered to commission an expert analysis by Michael Gorman and James Leyko, of Brubaker & Associates, Inc., a Missouri-based consulting firm that specializes in utility regulation. Through their testimony, CUB makes several recommendations to slash the rate hike by more than $100 million, including: Return on Equity. Nicor is asking for an excessive increase in its “Return on Equity” (ROE)—or profit rate for shareholders—from about 9.75 percent to 10.35 percent. Instead, CUB argues for a more reasonable 9.4 percent ROE, which would reduce the rate hike by $55.4 million. In the rate-setting process, ROE is the most important component of a utility’s “rate of return,” which is the rate at which the utility recovers the cost of financing physical assets, such as gas meters, pipes and gas-storage fields. Capital Structure. CUB’s expert testimony also found problems with another key component of the rate of return: “capital structure”—basically how it finances infrastructure projects. Nicor’s proposed “common equity ratio”—how much of the utility’s financing comes from issuing stocks—was too high, CUB argued. The more reasonable equity ratio CUB recommends would reduce the rate hike by another $16.7 million. Executive Bonuses. CUB argued that customers shouldn’t cover bonuses the company gives to executives for reaching financial goals that only benefit shareholders. That recommendation cut Nicor’s proposed increase by another $21.3 million. Other financial adjustments, including those related to sales forecasts, […]

The post CUB testimony: State regulators should slash Nicor Gas’ record rate-hike request appeared first on Citizens Utility Board.

]]>
Get the details on geothermal heat pumps https://www.citizensutilityboard.org/blog/2023/04/03/announcing-grow-geo-chicagoland-get-the-details-on-cubs-new-geothermal-heat-pump-group-buy/ Mon, 03 Apr 2023 20:19:16 +0000 https://www.citizensutilityboard.org/?p=37082 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 […]

The post Get the details on geothermal heat pumps appeared first on Citizens Utility Board.

]]>
Governor pushes for better accountability of gas utilities (we agree!) https://www.citizensutilityboard.org/blog/2023/03/14/governor-pushes-for-better-accountability-of-gas-utilities-we-agree/ Tue, 14 Mar 2023 14:34:40 +0000 https://www.citizensutilityboard.org/?p=36960 Governor J.B. Pritzker recently wrote an op-ed in the Chicago Sun-Times calling on gas utilities to be made more accountable to consumers and state regulators. The op-ed comes in the wake of news that gas utilities are pushing for a record $887 million in rate hikes.  CUB and other consumer advocates believe the current natural gas situation in Illinois is unsustainable financially and environmentally and calls for legislative action. “The cost to consumers will continue to rise if we leave unchecked the gas utilities’ desire to charge consumers an ever increasing amount for expansion of their natural gas infrastructure,” Gov. Pritzker wrote.  “It’s unfair and costly to consumers to allow gas companies to get away with not providing basic transparency and safety information to consumers and regulators,” added the Governor. “During this legislative session we need to adopt a number of measures that will protect gas customers.” Here are some of the reforms Gov. Pritzker listed:  An audit of the gas distribution infrastructure, so we know how our money has been spent in the last decade; Gas distribution planning, so the ICC can better rule on which expenses are necessary; Safety standards for gas pipes and distribution, so we can accurately determine what must be replaced and we don’t end up replacing infrastructure unnecessarily. Require utilities to offer lower rates for low-income customers, so they can get additional relief; Allow the ICC to require gas companies to maximize federal funds, so we can minimize the burden on Illinois ratepayers; Have performance-based regulations for gas utilities, as we have for the electric utilities, so we can ensure the gas companies’ profits are as promised in the rate-making process; Pay for the system using volumetric rates, not customer charges — so those who use more gas pay more (CUB note: This is a good argument for the value of efficiency.); Initiate new protections against shut-offs and additional payment plan mechanisms. Groups that advocate for gas customers welcomed the news. Earlier this year, CUB released a joint statement with the City of Chicago and the Illinois Attorney General’s office calling on legislators to develop strong policy to help Illinois consumers transition to cleaner and more affordable energy sources in response to the rate hikes. The statement reads:  “For years, the City, the Attorney General’s office, and consumer advocates have shared a deep concern about Peoples Gas’ poorly managed System Modernization Program (SMP). Specifically, the infrastructure program impacts natural gas affordability among Chicago consumers — as natural gas supply prices have already been at painfully high levels for about two years. Peoples Gas’ rate hike is grim news for Chicago consumers who have suffered for years under the expensive SMP program and who now face a historically expensive winter heating season.”  In 2021, Illinois made history with the Climate and Equitable Job Act, state legislation that brought reforms to the electricity market. Now the time has come for similar reforms to the gas industry.  Want to take action?  Join our Say No to Peoples Gas protest 11 am on Monday March 27 at the Aon Center in downtown Chicago: RSVP here File a public […]

The post Governor pushes for better accountability of gas utilities (we agree!) appeared first on Citizens Utility Board.

]]>
Ameren pushes billions in electric and gas rate hikes https://www.citizensutilityboard.org/blog/2023/01/31/ameren-pushes-500-million-in-gas-and-electric-rate-hikes/ Tue, 31 Jan 2023 16:58:02 +0000 https://www.citizensutilityboard.org/?p=36608 In one month, Ameren Illinois has filed for a $160.4 million gas rate hike and a four-year, $481 million electric increase, and they couldn’t have come at a worse time.  “This is awful news for Ameren customers who already were suffering under some of the highest electric and gas supply prices in Illinois history as well as earlier Ameren rate hikes,” CUB Executive Director David Kolata said in a statement. “CUB will do a thorough review of Ameren’s rate cases, and we will challenge every penny Ameren can’t justify.” These requests begin separate 11-month rate cases before the Illinois Commerce Commission (ICC). $481 million electric rate-hike request (filed Jan. 20) Ameren has received more than $118 million ($57.6 million in January 2022 and $61 million in January 2023) over the last two Januarys, and now it’s back at the table asking the ICC for more.  “We will review Ameren’s proposal carefully, but at first glance it is clear that the company is asking for an excessive 10.5 percent profit rate for its shareholders,” Kolata said. “Nobody disagrees that the power grid should be properly maintained, but that doesn’t mean Ameren deserves a blank check.” Sign CUB’s petition against Ameren electric rate hike.  $148 million gas rate-hike request (filed Jan. 6) Ameren received a $76 million gas rate hike in January of 2021, and now it wants another big increase. “This is too much for customers,” Kolata said. “Natural gas is expensive, it hurts our health and it makes climate change worse. We need to begin to plan for the move away from natural gas to heating alternatives that are cheaper, cleaner, safer and more reliable.” Sign CUB’s petition against Ameren’s gas hike.  These increases would impact delivery rates, which take up about a third to a half of electric/gas bills. It’s what the utilities charge customers to cover the costs of delivering gas or electricity to homes—plus a profit. “Electric and gas rate cases are often about the utility asking for an excessive profit rate for shareholders,” Kolata said. “CUB’s team will review these rate cases, challenge excessive profit rates, and work to reduce these rate hikes as much as possible.”  Visit  CUBHelpCenter.com for more energy and gas efficiency tips to help lower your bill. 

The post Ameren pushes billions in electric and gas rate hikes appeared first on Citizens Utility Board.

]]>
Peoples Gas pushing for $402 million rate hike– another fossil fuel increase! https://www.citizensutilityboard.org/blog/2023/01/06/peoples-gas-pushing-for-402-million-rate-hike/ Fri, 06 Jan 2023 20:36:04 +0000 https://www.citizensutilityboard.org/?p=36361 Peoples Gas, which serves Chicago residents, was expected on Friday to file for a record $402 million rate hike–a roughly 59 percent increase in delivery rates, according to Crain’s Chicago Business. Its suburban sister company, North Shore Gas, also is expected to file for an $18.5 million, or about 19 percent, increase. “The City, Illinois Attorney General’s Office and CUB will challenge this excessive rate hike on behalf of residents, and we urge the Illinois Commerce Commission (ICC) to take action to stop these increases and protect all customers,” CUB Executive Director David Kolata said. Read CUB’s joint statement with the Illinois Attorney General’s Office and the City of Chicago. Sign our petition urging the ICC to reject Peoples Gas’ rate hike. (North Shore customers, please sign this petition.) Peoples’ proposed increase, the largest gas rate-hike request in Illinois history, follows another record request from Nicor this week. It’s unusual to get hit with so many enormous rate-hike requests so quickly–and even worse, CUB expects Ameren Illinois to file for a gas hike this year also. The Illinois Commerce Commission (ICC) will rule on the requests after 11-month rate cases. These hikes serve as another reminder that fossil fuels–in this case, natural gas–are simply too expensive, and we need to begin the transition to cheaper, cleaner ways to heat our homes. (Read our guide on building electrification in Chicago.) These increases affect delivery rates, which take up about a third to a half of gas bills. They are what gas utilities charge customers to cover the costs of delivering gas to homes—plus a profit. If approved, the increases would raise delivery charges by about $142 per year for Peoples Gas and about $72 per year for North Shore customers.  Rapidly increasing gas bills have been an ongoing problem in Illinois. In 2013, the General Assembly allowed Peoples Gas, Nicor and Ameren to add the Qualified Infrastructure Plant (QIP) surcharge to bills. This regulatory shortcut allows utilities to recover certain costs more quickly and outside a standard ICC rate case proceeding. For Peoples Gas, the surcharge funds the mismanaged System Modernization Program (SMP), a multibillion-dollar infrastructure project that consumer advocates have criticized as mismanaged and punishingly expensive for consumers. Projected costs for the gas utility’s aggressive capital program have skyrocketed from about $2 billion to $11 billion, and an analysis by the Illinois Attorney General’s office estimated that gas bills could double over the next 15 years. Yet, while customers suffer under growing gas bills, Peoples has been making record profits. (Peoples’ parent company, Wisconsin-based WEC Energy Group, also is doing well. It raked in $1.16 billion in profits over the first 9 months of 2022.)  The QIP surcharge now exceeds $15 for an average Peoples Gas customer.  The abusive surcharge expires at the end of 2023, and the Illinois Attorney General’s Office, the City of Chicago and CUB are advocating for it to be eliminated. Peoples has indicated that included in the $400 million rate-hike filing is the $207 million the utility is currently collecting from the QIP surcharge, and it proposes to roll that amount into regular delivery rates. […]

The post Peoples Gas pushing for $402 million rate hike– another fossil fuel increase! appeared first on Citizens Utility Board.

]]>
CUB’s Consumer Agenda for 2021 https://www.citizensutilityboard.org/blog/2021/01/04/the-biggest-consumer-battles-of-2021/ Mon, 04 Jan 2021 21:47:16 +0000 https://www.citizensutilityboard.org/?p=30350 Report from David Kolata, CUB executive director Happy New Year, everyone. I thank you for your support of CUB and your interest in working for lower utility bills and cleaner energy. As we look ahead to 2021, I want to give you a report on the major challenges facing Illinois consumers. The issues below—in no particular order—are important to our bottom lines and our planet. Together, we will need to stand up for clean, affordable energy and consumer protections in 2021.   A terrible FERC ruling: Over the last few years this has been a major concern for CUB. Certain members of the Federal Energy Regulatory Commission (FERC) voted in 2019 to revamp electricity market rules and bail out fossil fuel power plants. The move threatens to cost most Illinois consumers up to $1.7 billion in higher power bills over the next decade—and it would make climate change worse.  How to fight it: CUB is working for the Clean Energy Jobs Act (CEJA), comprehensive energy legislation proposed in Springfield that would, among other things, protect Illinois consumers from the damaging FERC ruling.  ComEd corruption: ComEd has been fined $200 million by federal prosecutors, accused of using bribery to pass favorable legislation in Springfield. Yet, while the company has paid the federal government for its wrongdoing, consumers hurt by the company’s actions haven’t gotten one cent. How to fight it: CUB has partnered with former Gov. Pat Quinn and the consumer-rights law firm Edelson PC to sue ComEd in federal court, accusing it of bribery and racketeering activities. Our goal is to fight before anybody (the courts, the Illinois Commerce Commission and General Assembly) to win the most restitution possible for ComEd customers. The Clean Energy Jobs Act (CEJA) also has a provision that would require ComEd to pay restitution. In addition, CEJA contains provisions that would hold all utilities more accountable, by creating an ethics monitor, and replacing the legislation that allowed ComEd and Ameren to set rates by a formula. That formula rate legislation, which CUB has opposed multiple times and is at the center of the scandal, contained too few consumer protections against unfair rate hikes. CEJA would replace formula rates with a more fair and transparent system that would require ComEd and Ameren to prove how investments would make utility bills more affordable.  Rate hikes: As the year begins, two of the state’s natural gas providers are threatening consumers with more than $100 million in combined rate hikes. How to fight it: CUB is currently before the Illinois Commerce Commission challenging Ameren Illinois’ natural gas rate-hike request of about $97 million (down from the original $102 million request) and North Shore Gas’ request of about $10 million. CUB is ready to mount similar challenges against any rate-hike request by Illinois utilities.  Rising natural gas bills: A natural gas surcharge approved by the General Assembly years ago helps major utilities sidestep the regulatory process and raise heating bills, forcing many customers into financial crisis to cover billions of dollars in mismanaged utility spending. How to fight it: CUB, as part of a coalition of consumer advocates, has been working […]

The post CUB’s Consumer Agenda for 2021 appeared first on Citizens Utility Board.

]]>
Q&A: The biggest consumer battle of 2019 https://www.citizensutilityboard.org/blog/2019/08/19/qa-the-biggest-consumer-battle-of-2019/ Mon, 19 Aug 2019 16:25:18 +0000 https://www.citizensutilityboard.org/?p=22689 For more than a year now, CUB has been sounding the alarm about a potential ruling at the Federal Energy Regulatory Commission (FERC) that could raise ComEd power bills by up to $864 million a year. There have been delays in that ruling, but we now believe it is imminent. There is an urgent need for the Illinois General Assembly to step in and protect consumers from this rate hike, by passing the Clean Energy Jobs Act (CEJA). Here’s what you need to know, and how you can fight to protect your power bills. What’s happening at FERC? At the end of August, FERC Commissioner Cheryl LaFleur retired,  breaking a 2-2 deadlock on the commission that regulates the nation’s energy markets. That opens the door for FERC to pass a proposal favored by out-of-state power generators that would be devastating to our electric bills. It also would hamper Illinois’ efforts at becoming a national leader in securing clean, affordable electricity for consumers. The plan would overhaul the rules for an auction that determines the prices in a special electricity market called the  “capacity market.” That would inflate market prices to prop up struggling fossil fuel power plants and, in effect, make ComEd customers pay higher power bills for dirty power that they don’t need. How much would this cost consumers? A new  analysis estimates that northern Illinois consumers could see future rate hikes increasing bills by up to $864 million a year. When is a ruling expected? The ruling was first expected in early September, but it has been delayed, and is now expected some time before the end of the year. That’s why this issue is urgent. The Illinois General Assembly has a chance to fix this, but legislators have to act immediately. What can I do? Support legislation in Springfield called the Clean Energy Jobs Act (CEJA).  CEJA includes capacity market reforms that would shield electric customers from skyrocketing bills. Also, educate yourself about this important issue. You may not know it, but EVERYONE pays for “capacity” on their electric bills. What is capacity? Not only do you pay for the power you use now, but you also pay for power you could use in the future. Capacity refers to extra payments consumers give power plant operators for the commitment to have enough electricity available if demand suddenly spikes. (Think of a hot summer afternoon, when everyone blasts the air conditioning.) The price for capacity for ComEd customers is determined through auctions run by PJM Interconnection, the power grid operator for northern Illinois and all or part of 12 other states and Washington, D.C.. (Ameren’s market is run by a different power grid operator.) In these auctions, big power generators bid against each other for the right to cover a certain amount of future power, if needed, and win those capacity payments. The plan that FERC is considering–the one favored by out-of-state fossil-fuel generators–would change the rules that govern these auctions and make us pay more. Important: The next auction to determine capacity prices in Northern Illinois is early in 2020. That’s why the General Assembly has to act immediately […]

The post Q&A: The biggest consumer battle of 2019 appeared first on Citizens Utility Board.

]]>
Update from the State Capitol: Fighting for cleaner energy and lower utility bills https://www.citizensutilityboard.org/blog/2019/05/28/update-from-the-state-capitol-fighting-for-cleaner-energy-and-lower-utility-bills/ Tue, 28 May 2019 17:59:05 +0000 https://www.citizensutilityboard.org/?p=18424 This year alone, CUB Action Network members have sent more than 7,500 messages to Springfield in favor of good legislation and against bad bills—amazing! But we know tracking all these bills can get confusing. As we enter the last week of the General Assembly’s Spring Legislative Session, here’s a summary of what CUB’s policy team has been working on at the State Capitol. Most of these battles will spill over into the Fall Veto Session in November, where legislators are likely to consider an omnibus energy bill. CUB’s goal will be to negotiate an energy bills that promotes clean, low-cost energy and protects consumers’ pocketbooks. Legislation: Clean Energy Jobs Act (CEJA), Senate Bill 2132/House Bill 3624. CUB’s Take: We support it. CEJA is the most consumer-friendly energy bill in Springfield. It would expand energy efficiency and reform a key electricity market, called the “capacity” market. That would protect Illinois consumers from out-of-state power generators, like Vistra and NRG, that are working hard in Washington and Springfield to funnel more money to their own power plants. Status: CEJA has advanced out of the House Energy and Environment Committee. Take action here. Legislation: Home Energy Affordability and Transparency, or HEAT, Act, Senate Bill 651. CUB’s Take: We support it. This bill would be a major step toward reforming Illinois’ energy markets to protect customers from bad alternative supplier deals. It would: Stop alternative suppliers from automatically renewing a contract from a fixed rate to a variable rate (a rate that changes monthly), and then jacking up the price. The bill would require companies to get a customer signature before those contracts renew. End termination fees on supply contracts for residential and small-business customers. Protect Low Income Heating Assistance Program (LIHEAP) funds from supplier overcharges, making sure the money available can help as many people as possible. Require alternative supplier marketing materials as well as utility bills to clearly state the utility’s price, so consumers can make an apples-to-apples price comparison. Status: Good news! The HEAT Act unanimously passed both houses in late May. We’re hoping Gov. J.B. Pritzker signs it. Legislation: The Clean Energy Progress Act (HB 2861). CUB’s Take: Wait and See. This is a wide-ranging bill, pushed by ComEd-parent Exelon, that includes capacity market reforms, similar to what the Clean Energy Jobs Act wants. It also would include more support for renewable energy development—and, of course, more support for Exelon nuclear plants. The capacity reforms are promising, as Exelon says the bill would “guarantee savings for consumers beginning in the first year of implementation and continuing throughout the program, adjusted for inflation.” Status: The bill was voted out of the House Public Utilities Committee. Legislation: Amendment #3 to Senate Bill 135/Amendment #2 to House Bill 125. CUB’s Take: We’re opposed. This bill is being pushed by NRG Energy, Illinois’ second-largest coal plant operator. It would eliminate money-saving energy efficiency measures and potentially give the company a bailout of up to $300 million a year. Fossil-fuel power plants are expensive and struggling to compete with cheaper, cleaner forms of energy. So this bill amounts to an unnecessary bailout paid for by consumers to prop up power plants that are already on their way out of the market. […]

The post Update from the State Capitol: Fighting for cleaner energy and lower utility bills appeared first on Citizens Utility Board.

]]>