Nicor Archives | Citizens Utility Board

Illinois Future of Gas: Alternative Fuels Meeting – January 13, 2025

Jim Chilsen — Sat, 01 Feb 2025 01:07:51 +0000

By: Scott Allen, Energy Policy Specialist Alternative fuels was the theme of the eighth Future of Gas workshop. Advocates often refer to alternative fuels and decarbonization technologies (like so-called “renewable” natural gas, hydrogen and carbon capture connected to coal plants) as “false solutions” because they fail to truly deliver the clean and affordable promises made by the entities that market them. That’s a fair characterization, but after hearing the presenters during this workshop, I have a new term for this industry: “commodifying pollution.” That phrase probably hints at my bias (but I’ve never claimed to be unbiased). However, I am open to being convinced otherwise. I’ll be all for alternative fuels and carbon mitigation technologies–IF they turn out to be viable, healthy and affordable. In this workshop, we heard from the Electric Power Research Institute (EPRI); GTI Energy (formerly known as the Gas Technology Institute); The Roanoke Gas Company; Green Era Chicago and Nicor Gas/Southern Company. EPRI’s presenter gave an analysis of the various pathways to decarbonization via alternative fuels. The presentation was quite dense and cross-referenced. It compared, contrasted and qualified such a wide range of scenarios in such specificity that untangling it would take several pages, so I’ll skip to the takeaway points: “bioenergy” and Carbon Capture, Utilization and Storage (CCUS) conceptually are important, but as a decarbonization strategy, their potential is limited. There are cost-usefulness tradeoffs for various types of fuels and technologies depending on the sector and application. GTI Energy’s presentation discussed two alternative fuels: hydrogen and “renewable natural gas,” or RNG. GTI went further than EPRI to say that the benefits of RNG and hydrogen are well known, and that both fuels are tested, ready-made alternatives to methane gas. It’s important to point out that RNG is primarily methane, and in smaller quantities, carbon dioxide. In the same way that advertisers branded methane extracted from the earth as “natural,” they’ve started calling methane that occurs via decomposition of organic matter “renewable.” Likewise, when people in the energy industry refer to hydrogen, they are usually talking about the production of hydrogen, and then using that hydrogen as fuel in a number of industrial, commercial, transportation, and even residential applications. Hydrogen is appealing, at first, because it only exhausts water vapor. Nothing wrong with that, but the important questions for any application of hydrogen are: How is it produced? How efficient is it? Is it cost effective?” As far as I can tell, there aren’t any clear answers to those questions. It’s also not clear which method of production is preferred by the fossil fuel industry. They point out that hydrogen can be produced using renewable energy, but also that it can be produced using nuclear, gas and coal energy. I suppose they estimate that the greenhouse gas emissions from production would be offset by the energy density of the hydrogen used as a fuel. I can’t say whether or not this is true, or in which applications it may or may not be true, but neither can anybody else it seems. As always, I ask you to watch the replay of the workshop, and browse the materials […]

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CUB’s monthly report on gas volatility: July 2024

Jim Chilsen — Sun, 30 Jun 2024 02:07:00 +0000

Most gas utilities are charging higher supply prices, compared with last month and last year, according to CUB’s review of pricing information filed with the Illinois Commerce Commission (ICC). Gas utilities file supply prices–called the Purchased Gas Adjustment (PGA)–each month with the ICC. Here’s a rundown of what we found. Compared with last month, eight of nine major utilities are charging prices that are higher, ranging from about 1.19 percent (Ameren Illinois) to 40.6 percent (Mr. Carmel) higher. One is charging a price that is lower, by about 19.7 percent (Liberty Utilities). The prices are much lower than they were during the spike of a few years ago, thankfully, but for six of nine major utilities, they’re up from 2023. Compared with July of last year, prices for those six have increased from 16.7 percent (Ameren) on the low end and a whopping 149.7 percent jump (Illinois Gas) on the high end. Illinois Gas customers are for the fourth straight month suffering a high increase compared with a year earlier: up 59 percent in April, 97 percent in May, 128 percent in June and nearly 150 percent in July. Three utilities are charging lower prices than last year, ranging from a 1.9 percent decrease for MidAmerican, a 7.7 percent reduction for Nicor Gas and a 61.7 percent drop for Liberty Utilities. Below are the PGAs for July and how they compare with last year. Ameren Illinois– 47.85 cents per therm (up about 16.7 percent from July 2023) Consumers Gas– 64.34 cents per therm (up about 69.7 percent from July 2023) Illinois Gas– 48.03 cents per therm (up about 149.8 percent from July 2023) Liberty Utilities– 35.31 cents per therm (down about 61.7 percent from July 2023) MidAmerican Energy– 45.94 cents per therm (down about 1.9 percent from July 2023) Mt. Carmel– 35.69 cents per therm (up about 59.5 percent from July 2023) Nicor Gas– 36 cents per therm (down about 7.7 percent from July 2023) North Shore Gas– 36.39 cents per therm (up about 22.6 percent from July 2023) Peoples Gas– 35.93 cents per therm (up about 44.8 percent from July 2023) Note: Your utility is determined by where you live, so you cannot switch from one utility to another. Under Illinois law, gas utilities are not allowed to profit off supply prices—they pass those costs from gas producers and marketers onto customers with no markup. State regulators annually review the utilities’ gas-management procedures to ensure the companies did a reasonable job with their gas purchases, given market conditions, to hold down costs for consumers as much as possible. Regulators can order refunds if they find the companies were imprudent, but that is a rare event. A few tips about your gas bill: See if you qualify for energy assistance. The application process for the Low Income Home Energy Assistance Program (LIHEAP) is open until Aug. 15. To apply or learn more, visit www.helpillinoisfamilies.com or call the Help Illinois Families Assistance Line at 1-833-711-0374. Keep the lines of communication open with your utility. If you are having trouble affording your gas bills, it is vital that you contact your utility. Ask if you qualify for energy assistance programs; see if you can set up a payment plan to give you a longer time to pay off […]

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CUB’s monthly report on gas volatility: June 2024

Jim Chilsen — Tue, 28 May 2024 12:04:55 +0000

Gas utilities file supply prices–called the Purchased Gas Adjustment (PGA)–each month with the Illinois Commerce Commission (ICC). Here’s what we uncovered in our review of June prices. Compared with last month, six major utilities are charging prices that are higher, ranging from about 2 percent (Ameren) to 65 percent (Mr. Carmel). Two are charging prices that are lower, ranging from about 1 percent (North Shore) to 24 percent (Liberty). One gas utility, Nicor, is charging the same price it did in April and May: 34 cents per therm. The prices are much lower than they were during the spike of a few years ago, thankfully, but in some cases they have jumped significantly since 2023. Compared with June of last year, prices for six of the utilities this month are higher, including an 18 percent increase (Ameren Illinois) on the low end and a whopping 280 percent jump (Consumers Gas) on the high end. Illinois Gas customers are for the third straight month suffering a high increase: 59 percent in April, 97 percent in May, and 128 percent in June. Three utilities are charging lower prices than last year, ranging from a 2 percent decrease for MidAmerican, a 13 percent reduction for Nicor Gas and a 54 percent drop for Liberty Utilities. Below are the PGAs for June and how they compare with last year. Ameren Illinois– 47.76 cents per therm (up about 18 percent from June 2023) Consumers Gas– 50.55 cents per therm (up about 280 percent from June 2023) Illinois Gas– 44.02 cents per therm (up about 128 percent from June 2023) Liberty Utilities– 43.97 cents per therm (down about 54 percent from June 2023) MidAmerican Energy– 44.84 cents per therm (down about 2 percent from June 2023) Mt. Carmel– 25.38 cents per therm (up about 87 percent from June 2023) Nicor Gas– 34 cents per therm (down about 13 percent from June 2023) North Shore Gas– 34.18 cents per therm (up about 28 percent from June 2023) Peoples Gas– 28.15 cents per therm (up about 20 percent from June 2023) Note: Your utility is determined by where you live, so you cannot switch from one utility to another. Under Illinois law, gas utilities are not allowed to profit off supply prices—they pass those costs from gas producers and marketers onto customers with no markup. State regulators annually review the utilities’ gas-management procedures to ensure the companies did a reasonable job with their gas purchases, given market conditions, to hold down costs for consumers as much as possible. Regulators can order refunds if they find the companies were imprudent, but that is a rare event. A few tips about your gas bill: See if you qualify for energy assistance. The application process for the Low Income Home Energy Assistance Program (LIHEAP) is open until Aug. 15. To apply or learn more, visit www.helpillinoisfamilies.com or call the Help Illinois Families Assistance Line at 1-833-711-0374. Keep the lines of communication open with your utility. If you are having trouble affording your gas bills, it is vital that you contact your utility. Ask if you qualify for energy assistance programs; see if you can set up a payment plan […]

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News Release: Report warns that Illinois gas charges could triple in the next 10 years if state regulators do not intervene

Jim Chilsen — Mon, 06 May 2024 15:55:23 +0000

Gas utility customers in Illinois could see the delivery charges on their bills triple in the next decade if regulators do not limit gas utility spending, according to a new analysis released Monday. The Future of Gas in Illinois, from the Building Decarbonization Coalition and Groundwork Data, finds that despite stagnant customer growth in recent years and a projected decline in customers in coming years, Illinois’ four largest gas utilities (Ameren Illinois, Nicor Gas, North Shore Gas and Peoples Gas) have launched aggressive spending plans costing more than $1 billion each year, causing up to 29 percent of customers to fall behind on their gas bills, depending on utility. (This blog article is based on a news release from the Build Decarbonization Coalition. See the full release here.) The report finds that by 2050, if gas system spending goes unchecked, gas system charges on residential customer bills could top $650 per month during the winter—set costs that do not even include the cost of gas itself. Without regulator intervention, continued gas system investments will create an $80 billion stranded asset risk that taxpayers could be on the hook for. “If gas infrastructure spending continues at this pace, customers will face unaffordable bills just for the costs of the gas system alone, before they’ve used any fuel at all,” said Panama Bartholomy, executive director of the Building Decarbonization Coalition. “The Illinois Commerce Commission can help residents across the state avoid such unmanageable gas bills with a managed, equitable transition to pollution-free, highly efficient home heating options.” The Illinois Commerce Commission (ICC) recently opened a Future of Gas proceeding to assess what role gas may play in the state’s clean energy future. The report finds that if the ICC works to limit spending on gas pipelines and implements policies to create a managed, equitable transition off the gas system – the stranded asset risk can be reduced 67 percent by 2050. “The crippling costs of heating bills has already caused a financial emergency for many Illinois families, and this new study shows that current conditions represent only a fraction of the fiasco to come if spending by gas utilities is not held in check,” CUB Executive Director Sarah Moskowitz said in a statement along with the Illinois PIRG Education Fund. “Every dollar gas utilities spend on unnecessary fossil fuel infrastructure today creates a multi-decade liability for Illinois utility customers and the public,” added Abe Scarr, director of Illinois PIRG’s Education Fund. “This critical new analysis from the Building Decarbonization Coalition demonstrates just how harmful current gas utility spending levels are and how imperative it is that the Illinois Commerce Commission continue to reform utility practices as it did in its November rate-case decisions.” In the Chicago area, replacing just one mile of pipeline can cost customers up to $2.8 million. Utilities are incentivized to overinvest in costly pipeline replacement projects since these investments can be billed to customers over several decades, providing a lucrative return for investors. But such spending on gas infrastructure is increasingly out of touch, as Illinois seeks to cut climate pollution and residents take advantage of federal incentives […]

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CUB’s monthly report on gas volatility: May 2024

Jim Chilsen — Wed, 01 May 2024 12:36:43 +0000

Gas prices are lower than they were a year ago for most customers in the Chicago region, thankfully, but five utilities from across the state saw increases ranging from 9 percent to 97 percent from last May, according to CUB’s review of Illinois’ gas market. Gas utilities file supply prices–called the Purchased Gas Adjustment (PGA)–each month with the Illinois Commerce Commission (ICC). Here’s what we uncovered in our review of May prices: Compared with last month, four major utilities are charging prices that are lower, ranging from about 1 percent (MidAmerican) to 9 percent (Liberty). Four are charging prices that are higher, ranging from about 1 percent (Ameren) to 15 percent (Consumers Gas). One gas utility, Nicor, is charging the same price it did in April: 34 cents per therm. Compared with May 2023, prices for five of the utilities this month are higher than a year ago, starting with Mt. Carmel (9 percent increase). Illinois Gas customers are for the second consecutive month suffering the highest increase: 97 percent in May; 59 percent in April. Four utilities are charging lower prices than last year, ranging from a decrease of 13 percent (Nicor Gas) to 24 percent (Peoples Gas). Below are the PGAs for May and how they compare with a year ago: Ameren Illinois– 47.06 cents per therm (up about 16 percent from May 2023) Consumers Gas– 39.41 cents per therm (up about 37 percent from May 2023) Illinois Gas– 42.33 cents per therm (up about 97 percent from May 2023) Liberty Utilities– 58.03 cents per therm (down about 16 percent from May 2023) MidAmerican Energy– 36.51 cents per therm (down about 20 percent from May 2023) Mt. Carmel– 15.42 cents per therm (up about 9 percent from May 2023) Nicor Gas– 34 cents per therm (down about 13 percent from May 2023) North Shore Gas– 34.62 cents per therm (up about 22 percent from May 2023) Peoples Gas– 27.28 cents per therm (down about 24 percent from May 2023) Note: Your utility is determined by where you live, so you cannot switch from one utility to another. Under Illinois law, gas utilities are not allowed to profit off supply prices—they pass those costs from gas producers and marketers onto customers with no markup. State regulators annually review the utilities’ gas-management procedures to ensure the companies did a reasonable job with their gas purchases, given market conditions, to hold down costs for consumers as much as possible. Regulators can order refunds if they find the companies were imprudent, but that is a rare event. A few tips about your gas bill: See if you qualify for energy assistance. The application process for the Low Income Home Energy Assistance Program (LIHEAP) is open until Aug. 15. To apply or learn more, visit www.helpillinoisfamilies.com or call the Help Illinois Families Assistance Line at 1-833-711-0374. Keep the lines of communication open with your utility. If you are having trouble affording your gas bills, it is vital that you contact your utility. Ask if you qualify for energy assistance programs; see if you can set up a payment plan to give you a longer time to pay off your bills; and inquire […]

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So what am I paying to heat my home in 2024?

Jim Chilsen — Fri, 12 Jan 2024 00:02:52 +0000

The Illinois Commerce Commission (ICC) issued rulings last November that reduced record rate hikes proposed by Illinois’ major gas utilities by $240 million. As a result of those rulings, Illinois’ major gas utilities are charging new delivery rates in 2024. Read our breakdown below, and check out our Q&A on the gas rulings. (Read a similar breakdown for electric customers.) DELIVERY RATES What are delivery rates? Gas bills have major parts: delivery and supply. All of us pay delivery rates to cover the utilities’ costs of sending gas through their pipes to our homes–plus a profit for the companies. Those charges take up about a third to a half of bas bills. So what are we paying for delivery rates in 2024? These rates reflect the delivery rate hikes that Ameren Illinois, Nicor Gas and Peoples Gas received in an Illinois Commerce Commission (ICC) ruling in November of 2023. (North Shore Gas also got a rate hike, but they have yet to file their new tariffs, as they are disputing part of the Illinois Commerce Commission ruling requiring the company to change the way they bill customers.) Monthly Customer Charge This fixed monthly fee helps cover the utility’s administrative costs of doing business, such as billing, postage and customer assistance. Below is the fee for each utility and how it changed from the previous charge. CUB opposes high fixed fees because they are punitive on customers. People are forced to pay the same fee each month, even if they are working hard to be more energy efficient. Ameren Illinois: $20.89 (UP from $19.43) Nicor Gas: $18.88 (DOWN from $23.30) Peoples Gas: $27.36 (DOWN from $33.43) North Shore Gas: $21.11 (Previously 79.309¢ per day, or roughly $24 per month in a 30-day month) Distribution Charge This per-therm charge helps to cover the costs of maintaining equipment/pipes and other costs not recovered through the customer charge. We never like to see this fee go up, but because it’s based on usage, customers can reduce the impact of this charge by practicing energy efficiency. Ameren Illinois: 43.776 cents (UP from 31.935 cents) Nicor Gas: 21.34 cents (UP from 10.67 cents) Peoples Gas: 46.524 cents (UP from 19.477 cents) North Shore Gas: 18.671 cents (UP from 12.896 cents) SUPPLY RATES What are supply rates? Supply rates cover the costs of the actual gas. Unlike delivery charges, the utilities are not allowed to profit off the supply rate. Under Illinois law, they must pass those costs from gas producers and marketers onto customers with no markup. State regulators annually review the utilities’ gas-management procedures to ensure the companies did a reasonable job with their gas purchases, given market conditions, to hold down costs for consumers as much as possible. Supply takes up about a half to two-thirds of your electric bill. You can opt to pay an alternative supplier for these rates–but most likely your best bet is to stay with your utility for supply. (Read our tips to avoid bad alternative energy supplier deals.) So what are the utilities charging for supply? After two winters of elevated prices, gas supply rates are down […]

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What you need to know about January 2024 gas prices in Illinois

Elizabeth — Thu, 04 Jan 2024 19:18:24 +0000

Most gas companies are charging prices in the new year that are an average of 46 percent lower than last January, but month-to-month prices still show signs of the gas market’s instability. Gas utilities file supply prices–called the Purchased Gas Adjustment (PGA)–each month with the Illinois Commerce Commission (ICC). Below are the supply prices for January 2024, and how they compare with the prices from last year. January Gas Prices Ameren Illinois– 42.387 cents per therm (down about 36 percent from January 2023) Consumers Gas– 30.222 cents per therm (down about 58 percent from January 2023) Illinois Gas– 37.19 cents per therm (down about 37 percent from January 2023) Liberty Utilities–32.29 cents per therm (down about 54 percent from January 2023) MidAmerican Energy–43.52 cents per therm (down about 42 percent from January 2023) Mt. Carmel–39.78 cents per therm (down about 55 percent from January 2023) Nicor Gas– 34 cents per therm (down about 51 percent from January 2023) North Shore Gas– 41.17 cents per therm (down about 38 percent from January 2023) Peoples Gas– 31.89 cents per therm (down about 44 percent from January 2023) Note: Your utility is determined by where you live, so you cannot switch from one utility to another. Compared with last month, the prices range from being down 32 percent (Mt. Carmel) to up 11% (MidAmerican). Under Illinois law, gas utilities are not allowed to profit off supply prices—they pass those costs from gas producers and marketers onto customers with no markup. State regulators annually review the utilities’ gas-management procedures to ensure the companies did a reasonable job with their gas purchases, given market conditions, to hold down costs for consumers as much as possible. Gas prices: A recent (painful) history Gas supply price spikes are a recurring theme in the fossil fuel industry–there was a jump in prices in the winter of 2008-09, and in 2014 and from 2021-2022. The latest spike was first caused by extreme weather in February of 2021. Record cold in the southern United States for a time froze gas in wellheads and pipelines, limiting supply just as demand went up. The high prices were propped up by other developments, including Hurricane Ida in the summer of 2021 and the Russian invasion of Ukraine in 2022. The elevated gas prices also caused electricity prices to skyrocket–because gas is often used to generate electricity. Prices didn’t begin to come down until early in 2023. But the gas utilities hide behind supply and demand excuses. There’s more to this story in Illinois: Aggressive spending and rate hikes by Peoples Gas, Nicor Gas and Ameren Illinois also have contributed to skyrocketing gas bills. The last few high-priced winters have just reinforced the need to move away from expensive, dirty natural gas as a heating source. CUB, along with other advocates, have been pushing for the Chicago City Council to pass an ordinance moving new buildings to cheaper and cleaner forms of heating than natural gas. You can send a message to your City Council representative to urge their support of such an ordinance. While CUB works for long-term reform, here are some actions consumers […]

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A look at December’s gas prices

Elizabeth — Fri, 01 Dec 2023 17:59:40 +0000

Most gas companies are charging prices in December that are an average of 36 percent lower than last winter. The lone exception is North Shore Gas, which is actually charging 3 percent more than last year, giving another glimpse of the roller-coaster volatility of the gas market. Gas utilities file supply prices–called the Purchased Gas Adjustment (PGA)–each month with the Illinois Commerce Commission (ICC). Below are the supply prices for December 2023, and how they compare with the prices from last year. Utility December 2023 Price (per therm) Compared with November 2023 (%) Compared with December 2022 (+/-) Ameren Illinois 42.75 cents +8 percent -42 percent Consumers Gas 38.93 cents +8 percent -43 percent Illinois Gas 45.84 cents +38 percent -35 percent Liberty Utilities 42.29 cents -13 percent -45 percent MidAmerican Energy 39.13 cents -29 percent -37 percent Mt. Carmel 58.82 cents -20 percent -35 percent Nicor Gas 37 cents -5 percent -56 percent North Shore Gas 46.96 cents +3 percent +3 percent Peoples Gas 35.43 cents -9 percent -36 percent Note: Your utility is determined by where you live, so you cannot switch from one utility to another. As you can see, with one exception all of the gas prices are down from a year ago, by a range of 32 percent (MidAmerican) to 56 percent (Nicor). North Shore Gas was the first utility in a few months to register a price that was actually higher than last December’s price, with a 3 percent increase. Compared with the previous month, November, the prices were up for four utilities, by a range of 3.3 percent (North Shore Gas) to 37.9 percent (Illinois Gas). Thankfully, they were down from November for five utilities, by a range of 5 percent (Nicor Gas) to 23.9 percent (MidAmerican). Under Illinois law, gas utilities are not allowed to profit off supply prices—they pass those costs from gas producers and marketers onto customers with no markup. State regulators annually review the utilities’ gas-management procedures to ensure the companies did a reasonable job with their gas purchases, given market conditions, to hold down costs for consumers as much as possible. Gas prices: A recent (painful) history Gas supply price spikes are a recurring theme in the fossil fuel industry–there was a jump in prices in the winter of 2008-09, and in 2014 and from 2021-2022. The latest spike was first caused by extreme weather in February of 2021. Record cold in the southern United States for a time froze gas in wellheads and pipelines, limiting supply just as demand went up. The high prices were propped up by other developments, including Hurricane Ida in the summer of 2021 and the Russian invasion of Ukraine last year. The elevated gas prices also caused electricity prices to skyrocket–because gas is often used to generate electricity. Prices didn’t begin to come down until early in 2023. But the gas utilities hide behind supply and demand excuses. There’s more to this story in Illinois: Aggressive spending and big rate hikes by Peoples Gas, Nicor Gas and Ameren Illinois also have contributed to skyrocketing gas bills. The last few expensive winters have […]

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CUB Update: Illinois Commerce Commission announces new, expedited schedule for rate-hike decisions

Elizabeth — Fri, 27 Oct 2023 20:55:19 +0000

Update: The final order on Nicor’s request for a $320 million rate hike has been delayed due to a late motion by some parties (not CUB) in the case. It’s likely the Nicor order will be moved to Nov. 16, with the other decisions in the gas cases (Peoples/North Shore Gas, Ameren Illinois). Once we get an update we will let you know. Last week we delivered more than 2,300 petitions to the Illinois Commerce Commission (ICC): 460 digital petition signatures against the Nicor rate hike, plus 1,892 paper petitions against all the proposed rate hikes ($2.9 billion in proposed increases). Here’s a selfie video CUB Communications Director Jim Chilsen took just before dropping off the paper petitions at the ICC. The Illinois Commerce Commission (ICC) will rule on $2.9 billion in rate-hike requests sooner than expected. Last week, the ICC released a new, expedited schedule of Final Orders. We’ve listed the schedule below. If you haven’t already, this is the last chance to speak out against your utility’s rate-hike request: Nov. 16 (changed from Nov. 2): Nicor Gas $320 million rate-hike request. (CUB argues it should be cut by at least $132 million. File a public comment on Nicor Gas’ rate hike with the ICC.) Nov. 16: Peoples Gas $402 million and North Shore Gas $17 million rate-hike requests. (CUB argues they should be cut by at least $96 million and $3 million, respectively. File a public comment on Peoples Gas’ rate hike or North Shore Gas’ rate hike with the ICC.) Nov. 16: Ameren Illinois (gas) $148 million rate-hike request. (CUB argues it should be cut by at least $77 million. File a public comment on Ameren Illinois’ gas rate hike with the ICC.) Dec. 14: ComEd 4-year, $1.5 billion rate-hike request. (CUB argues it should be cut by at least $915 million. File a public comment on ComEd’s rate hike with the ICC.) Dec. 14: Ameren Illinois (electric) 4-year, $481 million rate-hike request. (CUB argues it should be cut by at least $520 million. File a public comment on Ameren Illinois’ electric rate hike with the ICC.) We will update you as soon as we know how the ICC rules. Thanks for your support during these long and important cases.

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CUB asks Illinois consumers to support the Ethics in Energy Act

Jim Chilsen — Tue, 15 Aug 2023 19:20:39 +0000

It’s bad enough that utilities join industry and trade groups that push bad, anti-consumer policy. But it’s even worse that consumers actually foot the bill for those activities. That’s right, our monthly gas and electric bills help cover the utilities’ membership dues to groups that actively work against our interests. But there’s a new reform proposal in Washington, the Ethics in Energy Act (H.R. 5075), which, among other things, would close loopholes and require utility shareholders, and not customers, to cover such costs. (We featured this legislation in our weekly e-newsletter: Please send a message to your representatives in Washington in support of this legislation.) “The Ethics in Energy Act is about shining a light on shady utility spending,” said Bryan McDaniel, CUB’s director of Governmental Affairs. “If the utilities want to fund groups that actively work against consumer interests, they should make the shareholders pay for it, not customers.” This is a popular idea. Polling by Data for Progress found that a bipartisan majority of voters (76%) disapprove of this practice after a brief introduction to the utility company practice of using money from customers’ monthly bills to fund activities such as trade association membership dues. Read more about the Ethics in Energy Act (H.R. 5075), which is co-sponsored by Rep Kathy Castor of Florida; Rep. Sean Casten of Illinois; and Rep. Jamaal Bowman of New York. Also, here’s a blog about the legislation, written by our friends at the Energy and Policy Institute.

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