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Q&A: High natural gas bills in Illinois

Jim Chilsen — Sun, 01 Jan 2023 11:00:12 +0000

Natural gas bills are at their highest level in years, and the two major reasons are: overly aggressive spending by gas utilities and skyrocketing supply prices. Read our Q&A to get the details. How expensive has this been for consumers? People in Illinois who heat their homes with natural gas (about 80 percent of households) paid hundreds of dollars more in the winter of 2021-22, compared with the previous winter. It was the most expensive cold season since 2008-09. This winter could be worse, as prices continue to be elevated for the 2022-23 winter heating season. Why are we seeing high bills? Consumers are getting hit with a “double-whammy”–higher than average charges on both the supply and delivery sides of gas bills. Aggressive utility spending on the delivery side of bills. In recent years, utilities have launched aggressive spending programs that have increased the delivery charges on our bills. That’s what we pay the utility to deliver gas to our homes–plus a profit for the company. In previous years, when gas prices were lower, the impact of utility spending wasn’t as noticeable on our bills. That changed in 2021. Spiking natural gas supply prices. Natural gas prices go through periodic price spikes, and this one was sparked by an extreme cold snap that brought record-low temperatures across the nation in February of 2021. The extreme weather, which has been attributed to climate change, froze natural gas in pipelines and wellheads in Texas and other areas of the South, limiting supply across the country just as heating demand was shooting up. The limited supply coupled with high demand sent prices soaring. Since then, other factors have helped keep prices elevated, including: 1) increased demand as economies recovered from the pandemic; 2) increased Liquid Natural Gas (LNG) exports to other parts of the world, such as Europe, keeping supply lower here; 3) less gas exploration and well construction in recent years because the gas industry didn’t see those efforts as profitable; 4) increased demand for natural gas to generate electricity during warmer summers; 5) disruptions in gas supply caused by Russia, a major oil and gas producer, invading Ukraine; and 6) Hurricane Ida in the summer of 2021 knocked more than 90 percent of gas production in the Gulf of Mexico offline, according to the Energy Information Administration. “The boom-bust cycle of this fossil fuel is making consumers pay,” CUB Director of Governmental Affairs Bryan McDaniel said. Why are gas utilities increasing delivery charges on bills? Major Illinois utilities–Ameren Illinois, Nicor Gas and Peoples Gas–successfully pushed for legislation in 2013 that allowed them to add the “Qualified Infrastructure Plant” surcharge to bills to help them bring in revenue more quickly and easily than through a traditional 11-month rate case. Crain’s Chicago Business reported that Peoples Gas, the utility for Chicagoans, has collected more than $600 million in surcharges since 2016–and the QIP charge had ballooned to about $15 every month for the average household. “So many people in the city are having trouble paying their bills as it is,” CUB Executive Director David Kolata told Crain’s. “This is a reckoning that was just waiting to […]

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Alert: CUB urges struggling consumers to call their utilities before key protections expire July 31

Jim Chilsen — Fri, 29 Jul 2022 11:32:44 +0000

Amid high energy prices, the Citizens Utility Board (CUB) is urging consumers who are struggling to pay their utility bills to call their utilities immediately to learn about protections available to stay connected to service. Some of those safeguards expire July 31. “It’s been a rough year for utility customers, and it’s so important that people keep the lines of communication open with their utilities,” CUB Communications Director Jim Chilsen said. “Call your utilities to learn about energy assistance available and special payment plans to pay off your debt, and inquire about energy efficiency programs that can help soften the blow of these high prices.” Energy prices are at unprecedented levels for natural gas and electric customers. The ComEd and Ameren summer power prices are up by a range of 60 percent to 120 percent. Natural Gas prices offered by utilities across the state are up to 130 percent higher than last year. CUB and other consumer advocates have negotiated with utilities to create protections to help people stay connected. But many of those end July 31. The following is a summary of some protections, broken down by major utilities in the state: ComEd, Ameren Illinois, Nicor Gas, Peoples Gas and North Shore Gas said they will not disconnect lower-income customers due to nonpayment, through July 31. Specifically, this covers customers who in 2022 have applied for or are receiving benefits through the Low Income Home Energy Assistance Program (LIHEAP) or the Percentage of Income Payment Plan (PIPP). ComEd: LIHEAP or PIPP customers can receive Deferred Payment Arrangements (DPAs) of 12 months, with no down payment, available through July 31. All other residential customers can sign up for a DPA of up to 12 months with 10 percent down until July 31. Ameren: The utility has publicly said qualified Ameren Illinois customers who are behind on their energy bills can establish an 18-month repayment plan with a 10 percent down payment through July 31. After July 31, most customers with outstanding balances will need to make a 25 percent down payment before they can establish a monthly payment plan Nicor: Customers can sign up for an 18-month deferred payment arrangement (DPA) with no down payment required. Peoples Gas/North Shore Gas: LIHEAP/PIPP customers or applicants are eligible for an 18-month DPA with no down payment required through July 31. All other residential customers may enroll in a 25 percent down, 18-month DPA through July 31. CUB encourages consumers to call their utilities to ask if they’re eligible for these protections before they expire. Utility contact information: ComEd 1-800-334-7661 Ameren 1-800-755-5000 Nicor 1-888-642-6748 Peoples Gas 1-866-556-6001 and North Shore Gas 1-866-556-6004 For more information about high energy prices, visit CUBHelpCenter.com.

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Worried about expensive utility bills? Check out these resources for Illinois consumers

Sophia — Wed, 04 May 2022 20:11:15 +0000

As energy prices skyrocket and an expensive summer approaches, CUB has compiled a list of resources to help consumers who are struggling with their bills. Please share this blog post with your friends and family. If you or someone you know is having trouble paying for utility services, the first step is to contact the utility. They will know what assistance is available and can give you information about special payment plans available to help you pay off your bills over a longer period of time. Below is the contact information for the major utilities: ComEd: 1-800-334-7661 Ameren: 1-800-755-5000 Nicor: 1-888-642-6748 People’s Gas: 1-866-556-6001 and North Shore Gas: 1-866-556-6004 General Low Income Home Energy Assistance Program (LIHEAP) Administered by the Illinois Department of Commerce and Economic Opportunity, LIHEAP is designed to help eligible low-income households pay for energy services. While the application period has passed this year (September 1, 2021 to May 31, 2022), this is a good program to have in mind for the next application cycle. The DCEO website has more information on how to apply. Read CUB’s LIHEAP fact sheet. Electric ComEd Payment Assistance ComEd offers due date extensions, payment plan arrangements and fee waivers for eligible customers. Ameren Payment Assistance Ameren Illinois offers several forms of financial assistance, including short-term, one-time payment extensions and fixed monthly payment agreements to settle past balances. (For example, Warm Neighbors Cool Friends provides year-round energy bill payment assistance and home weatherization to make harsh winters and hot summers bearable. Eligible households can receive $350 during the heating season and $200 during the cooling season.) Gas Peoples Gas Share the Warmth Administered by the Community and Economic Development Association (CEDA), Share the Warmth provides heating grants to limited and fixed-income households. Eligible customers who make a payment toward their bills receive matching grants of up to $200. Also available for North Shore Gas customers. Nicor Gas Sharing Program Qualified residential customers can receive a one-time annual Sharing Grant of $350 or $400, with no requirement to pay back. The program is administered through the Salvation Army. Ameren Payment Assistance Ameren Illinois offers several forms of financial assistance, including short-term, one-time payment extensions and fixed monthly payment agreements to settle past balances. (For example, Warm Neighbors Cool Friends provides year-round energy bill payment assistance and home weatherization to make harsh winters and hot summers bearable. Eligible households can receive $350 during the heating season and $200 during the cooling season.) Water Low Income Household Water Assistance Program (LIHWAP) A new temporary federal program offers one-time payments to qualifying customers who are struggling to pay their water and wastewater bills during the pandemic. Read CUB’s fact sheet. Chicago Utility Billing Relief (UBR) Program Administered by the City of Chicago, the UBR Program provides low-income Chicago residents with a reduced rate on their water, sewer, and water-sewer tax, as well as debt relief for those who demonstrate they can manage the reduced rate bills for one year. Additional resources Receiving assistance in other areas, such as housing, can free up more money to pay your utility bills. www.FindHelp.org This website uses your zip code to connect you to nearby resources […]

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February’s natural gas prices: How much will you pay to heat your home?

Sophia — Tue, 01 Feb 2022 21:17:45 +0000

A year after a deep freeze across the Southern United States sparked problems in the natural gas distribution system, Illinois consumers are still suffering under skyrocketing heating bills because of that extreme weather and other market problems. The prices for major natural gas utilities in Illinois are as follows: Ameren Illinois – 69.913¢ per therm (Up about 96 percent from February 2021.) Consumers Gas – 56.455¢ per therm (Up about 73 percent from last February.) Illinois Gas – 65.07¢ per therm (Up about 57 percent from last February.) Liberty Utilities – 65.49¢ per therm (Up about 170 percent from last February.) MidAmerican Energy – $1.02 per therm (Up 193 percent from last February.) Mt. Carmel – 43.41¢ per therm (Up 27 percent from last February.) Nicor Gas – 55.00¢ per therm (Up 83 percent from last February.) North Shore Gas – 59.31¢ per therm (Up 55 percent from last February.) Peoples Gas – 59.58¢ per therm (Up about 103 percent from last February.) While prices from a few companies came down a bit from January (down about 1 percent for Ameren and about 10 percent for Nicor, for example), winter prices are still much higher than they have been in more than a decade. For about 10 months, natural gas prices have been elevated, sparked at first by record-low temperatures that hit the nation last February. In the South, the extreme cold, connected to climate change, disabled wellheads and other parts of the nation’s natural gas delivery network just as demand went up. A number of other factors have contributed to the spike, including 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; increased use of gas for electricity generation during the hot summer; and Hurricane Ida, which knocked more than 90 percent of gas production in the Gulf of Mexico offline in late August. While gas utilities simply pass the high prices onto customers, with no markup–it’s illegal for them to profit off of gas supply–they have increased and profited off bills in other ways. CUB has been on a years-long campaign to rid Ameren Illinois, Nicor Gas and Peoples Gas bills of the “Qualified Infrastructure Plant” surcharge. The charge, which went into effect thanks to a law the General Assembly passed in 2013, allows the companies to sidestep the traditional regulatory process and rake in revenue more quickly, leading to rapidly rising heating bills. When the utilities first got legislative approval for this surcharge, we were told it would only cost about $13 a year on average for Peoples Gas customers. Those customers are now paying about $13.54 a month, on average—on track for $150 a year. It is expected that gas companies maintain their pipelines and other infrastructure, but they can do this without bankrupting their customers. In 2021, Ameren received a $76 million increase and Nicor a record $240 million increase, and we’re concerned Peoples Gas will come in for an increase in 2022. CUB urged consumers to visit CUBHelpCenter.com. The free online resource explains why gas prices are high, […]

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Despite price drop, natural gas supply rates still high compared to 2020

Hannah — Wed, 01 Dec 2021 19:48:41 +0000

Several natural gas utilities have dropped their prices slightly in December after months of ballooning prices. Despite the slight decrease, natural gas prices are still two to three times greater than they were last December. Current natural gas prices are related to an extreme cold snap that froze natural gas pipelines and wellheads in the South last winter, limiting supply across the country just as heating demand was shooting up. Decreased exploration and well construction are also contributing factors. The price per therm you’ll pay for natural gas in December, also known as the Purchased Gas Adjustment, or PGA, is shown in the chart below. It includes PGAs from this month, last month and December 2020 for comparison. Hover your mouse over the graphic to show prices. Peoples Gas, North Shore Gas, Mount Carmel, Liberty Utilities and Consumers Gas all lowered their prices this month. Peoples Gas lowered its price more than 5 cents to 68.14 cents per therm. Despite the lowered price, this supply rate is still a 153 percent increase from last December’s 26.91 cents per therm. North Shore Gas customers will see an 8 cents per therm drop on their bills to 60.93 cents per therm. While most utilities lowered their prices slightly, a few continued to raise their supply rate. Ameren’s price jumped a penny, to 69.67 cents per therm. Consumers Gas customers will see an increase of more than 6 cents, to 68.16 cents, a 123 percent increase from last December. Illinois Gas also raised its supply rate by 1.5 cents. Nicor Gas maintained its price at 68 cents. Reminder: You cannot switch to another utility. Utility service territories are geographic: Your utility is determined by where you live. Nicor, Peoples Gas and North Shore Gas can switch to alternative suppliers, but be careful: That market has been plagued by bad deals and rip-offs. Suppliers may try to use the headlines about high prices to lure you into a bad deal. Remember, suppliers are impacted by the same market conditions that are causing utility supply rates to go up. If an offer from a supplier seems too good to be true, there’s a good chance it is. With these high prices, CUB encourages consumers to be prudent with their gas usage and practice energy efficiency when possible to help lower bills. Visit the CUB Help Center for more information about utility bill assistance, winter heating safety and efficiency.

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With an expensive winter ahead, CUB Help Center aims to protect consumers from ballooning gas bills

Hannah — Mon, 01 Nov 2021 14:45:32 +0000

Illinois consumers are facing the possibility of hundreds of dollars in higher heating bills this winter due to skyrocketing natural gas prices and aggressive utility spending. Most supply rates went up again on Nov. 1, with major utilities charging about double 2020 prices. CUB has launched an online help center to advise gas customers on how to soften the blow of these potentially crippling price increases. CUB alerted consumers to CUBHelpCenter.com. The new site explains why gas prices are high, offers efficiency and safety tips, outlines a customer’s rights against disconnection and arms consumers with information about energy assistance and alternative suppliers. (This resource also is available in Spanish.) The consumer group also called on utilities and government officials to provide more energy assistance this winter, and it urged people struggling to pay their bills to contact their utilities to inquire about payment plans and assistance available. Winter prices are at their highest level since the heating season of 2008-09. Here are the prices per therm for Illinois’ major utilities as of Nov. 1: “Many consumers were already having a hard time paying their bills due to the financial impact of the pandemic, so these skyrocketing natural gas prices are not helping anyone,” CUB Outreach Director Ivonne Rychwa said. “We urge consumers to reach out to their utility to see if they are eligible for assistance and to prevent disconnection.” CUB highlighted a number of key points concerning the expensive winter: Consumers should contact their utilities. Heating customers struggling to afford their utility bills are encouraged to contact their utility and express financial hardship. Your utility may offer payment arrangements or financial assistance. Utilities need to step up. The consumer group called on utilities to set aside shareholder money to help consumers afford their bills this winter. Nicor Gas recently announced that it contributed $5 million in shareholder money for a program with the Salvation Army to give out grants up to $250 to consumers in need who are behind on their bills. CUB also urged utilities to be flexible to keep their customers connected this winter. More energy assistance is needed. CUB urged consumers to check if they qualify for energy assistance, and the consumer group urged federal officials to increase energy assistance for Illinois consumers this winter and beyond. Practice energy efficiency. CUB’s Help Center offers tips on cutting utility bills through energy efficiency, and it gives information on no-cost utility programs that can help customers make their homes more efficient. Beware of bad deals. Alternative supplier sales representatives may use the high gas prices to try to lure customers into bad deals. The natural gas market has been plagued by high-priced offers and misleading marketing. Even with these high prices, it’s likely the utility is still your best bet. Illinois needs long-term policy changes. In addition to fighting for immediate relief for gas customers, CUB said this high-priced winter is further proof of the need for reform. For years, CUB has called on the state to rein in aggressive gas utility spending. Also, the consumer group said it’s time to begin planning for the transition away from natural gas, a fossil fuel. […]

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Memo from the General Counsel: CUB’s consumer battles

Sophia — Fri, 29 Oct 2021 23:43:58 +0000

By Julie Soderna, CUB General Counsel Below is a rundown of key consumer battles in our caseload. In summary, we helped reduce utility rate hikes by a total of $85 million, and we helped negotiate $2 million in refunds and energy assistance from three alternative suppliers accused of violating state regulations. I appreciate the generous donors who help fund our work on these cases. We could not perform this important work without them. ComEd Class Action (Federal Case: 1:20-cv-04405, State Case: 2020-CH-05138) CUB intervened in class action lawsuits in both federal and state courts seeking fair compensation for customers harmed by ComEd’s corruption scandal. CUB partnered with former Gov. Pat Quinn and Edelson P.C., one of the nation’s top consumer law firms, on these lawsuits. Unfortunately, in September, a U.S. District judge dismissed CUB’s federal lawsuit, but the consumer group is committed to working in multiple venues—before state courts, state regulators and the General Assembly—to secure fair compensation for customers. Formula Rate Cases (ComEd: Docket 21-0367, Ameren: 21-0365) Under the formula rate-setting system, ComEd this past spring requested a $51.167 million rate hike, and Ameren asked for a $64.092 million increase. Electric delivery rates are set by a formula, according to a law passed by the General Assembly in 2011. CUB opposed the law, because the formula rate system makes it much more difficult for regulators and consumer advocates to challenge and reduce rate hikes. CUB still works to reduce proposed increases as much as possible. The rate-hike request has since been adjusted to lower amounts: about $45 million for ComEd and $60 million for Ameren. Final Illinois Commerce Commission (ICC) rulings are due in December. Note: CUB, along with the Illinois Clean Jobs Coalition, helped pass a comprehensive energy bill, the Climate & Equitable Jobs Act (CEJA), that will replace the formula rate system that led to hundreds of millions of dollars in rate hikes over the last decade. Nicor Gas Rate Case (Docket 21-0098) Nicor requested a total increase of $293.4 million, the largest gas rate-hike request in state history. We partnered with the Illinois Industrial Energy Consumers (IIEC) to present a witness who filed testimony recommending an $81.4 million reduction to the request, including a more reasonable profit rate for shareholders. We also partnered with Environmental Defense Fund to recommend the denial of two pilot programs that would be unnecessary and overly expensive for customers. While we helped cut the increase by about $53 million, the ICC still granted the company a $240 million rate hike in November, and it approved one of the pilot programs, with changes. This is the largest gas-hike in Illinois history. North Shore Gas Rate Case (Docket 20-0810) North Shore initially requested an increase of $10.6 million, or 11.8%, but after accepting some adjustments, whittled it down to $6 million. We filed testimony on the return on the profit rate for shareholders and capital structure. The Attorney General’s Office and Staff of the ICC also filed strong testimony, and the combined work of consumer advocates led the judge to recommend a reduction in the rate-hike request. In September, the ICC awarded North Shore […]

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Consumer Alert: CUB launches online help center as natural gas prices surge

Sophia — Mon, 04 Oct 2021 16:02:05 +0000

With Chicago-area consumers facing the possibility of hundreds of dollars in higher heating bills this winter due to skyrocketing natural gas prices and out-of-control utility spending, the Citizens Utility Board (CUB) on Monday launched an online help center to advise gas customers on how to soften the blow of these potentially crippling cost increases. The news comes as Illinois saw yet another jump in gas prices on Oct. 1, with major utilities charging prices that are up to nearly triple last year’s supply rates. CUBHelpCenter.com explains why gas prices are high, offers safety and efficiency tips, outlines a customer’s rights against disconnection and arms customers with information about energy assistance. Early predictions are that consumers could pay hundreds of dollars extra to heat their homes this winter. The chart shows the gas prices of major Illinois utilities as of Oct. 1, compared with last year. Winter prices are expected to be at their highest level since the heating season of 2008-09. Utility October 2021 October 2020 % increase from Oct. 2020 Ameren Illinois 66.718¢ per therm 31.167¢ per therm 114% MidAmerican Energy 96.29¢ per therm 32.11¢ per therm 199% Nicor Gas 63¢ per therm 28¢ per therm 125% North Shore Gas 67.19¢ per therm 35.17¢ per therm 91% Peoples Gas 72.56¢ per therm 24.31¢ per therm 198% Smaller utilities are also seeing significant increases including Consumers Gas (at about 80 cents per therm) and Mr. Carmel (about $1 per therm). For a full list of prices, read CUB’s recent WatchBlog article. “High heating bills will be difficult for everyone, but could be painful and even disastrous for some families this winter,” CUB Executive Director David Kolata said in a CUB news release. “This could require action from state and federal officials to protect gas customers, but we also call on the utilities to do everything they can to keep their customers connected this winter. With the level of spending by some major utilities in the state, we have worried about an emergency like this for years.” CUB highlighted few important points about the elevated bills: The high prices are related, in part, to climate change. Prices have been elevated since last winter, in connection with extreme weather that has become more frequent as climate change intensifies. Record cold across the South last February froze natural gas wellheads and pipelines, limiting supply just as demand was shooting up. That sparked high market prices, which have contributed to high utility supply rates all year. The price hike highlights the need to transition to an affordable and environmentally sustainable system. Other factors have helped keep prices elevated, including: 1) less gas exploration and well construction in recent years; 2) increased demand as economies worldwide begin to recover from the pandemic; 3) increased Liquid Natural Gas (LNG) exports to other parts of the world, such as Europe; 4) increased use of gas for electricity generation in a hot summer of high air-conditioning use; and 5) Hurricane Ida knocked more than 90 percent of gas production in the Gulf of Mexico offline in late August, according to the Energy Information Administration. Commodity prices are not the only reason we’re paying high bills. While utilities […]

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Brace yourself: October gas prices more than double 2020 supply rates

Hannah — Thu, 30 Sep 2021 14:04:06 +0000

Most Illinois natural gas utilities in October are charging more than double their 2020 prices, according to preliminary tariff filings. Natural gas prices have been on the rise since early this year, causing growing concern as winter weather draws near. These appear to be the highest winter heating season prices many Illinois consumers have seen since 2008-09. Current natural gas prices are one of the lingering effects of an extreme cold snap that brought record-low temperatures across the nation this past February. The extreme weather, attributed to climate change, froze natural gas pipelines and wellheads in Texas and other areas of the South, limiting supply across the country just as heating demand was shooting up. The limited supply coupled with high demand resulted in skyrocketing market prices. Utilities in Illinois for most of the year have been charging high natural gas prices — this month, most are charging about double or triple prices from 2020. (There are other factors contributing to high prices. Read CUB’s Q&A.) The price per therm you’ll pay for natural gas in October, also known as the Purchased Gas Adjustment, or PGA, is shown in the chart below. It includes PGAs from this month, last month and October 2020 for comparison. Hover your mouse over the graphic to show prices. Mount Carmel had the largest per-therm increase from last month, shooting up more than 40 cents from September. The utility has a current rate of just over a dollar, which is also the highest price of any utility for October. Ameren’s price increased by less than a penny, to 66.72 cents, the smallest increase from last month. Nicor went up 10 cents from last month, to 63 cents per therm, which is more than double the 28 cents per therm the utility charged in October 2020. Peoples Gas is charging 72.56 cents, and North Shore customers will pay 67.19 cents per therm. Reminder: You cannot switch to another utility. Utility service territories are geographic: Your utility is determined by where you live. Nicor, Peoples Gas and North Shore Gas can switch to alternative suppliers, but be careful: That market has been plagued by bad deals and rip-offs. Suppliers may try to use the headlines about high prices to lure you into a bad deal. Remember, suppliers are impacted by the same market conditions that are causing utility supply rates to go up. If an offer from a supplier seems too good to be true, there’s a good chance it is. With these high prices, CUB encourages consumers to be prudent with their gas usage and practice energy efficiency when possible to help lower bills. Visit the CUB Help Center for more information about winter heating safety and reducing your heating bills. If you’re having a hard time paying your bills, we list your options for getting assistance.

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Q&A: High natural gas prices in Illinois

Hannah — Fri, 17 Sep 2021 16:26:33 +0000

Natural gas prices charged by Illinois utilities began shooting up last spring, and continue to be at a high level (double and triple last year’s prices) as we head into the expensive winter heating season. Read our Q&A to find out why this is happening and how you can protect yourself. What are the major gas utilities charging in Illinois? Prices charged by Illinois utilities have been double or triple what they were last year. Crain’s Chicago Business reported in late September that prices could be at their highest levels since the winter of 2008-09, and gas utilities in the Chicago region predict that heating bills from November through March will be about 35 percent to 50 percent higher than last year. CUB has been following the gas prices each month. For the latest charges, see CUBHelpCenter.com. This chart on Nicor Gas’ website is a good illustration of when the price spike began in 2021. Also, these charts on the Illinois Commerce Commission (ICC) website highlight historical prices for Nicor Gas, Peoples Gas and North Shore Gas. Why are we seeing an increase in prices? In part, it’s the lingering effects of an extreme cold snap that brought record-low temperatures across the nation last February. The extreme weather, which has been attributed to climate change, froze natural gas pipelines and wellheads in Texas and other areas of the South, limiting supply across the country just as heating demand was shooting up. The limited supply coupled with high demand sparked skyrocketing market prices that contributed to high utility supply rates all year. Gov. J.B. Pritzker’s administration issued a disaster proclamation for all 102 Illinois counties in the wake of the snow and subzero temperatures in the state February 14-15. Pritzker said: “Extreme weather has resulted in frozen wells in key natural gas producing states, including Texas, Oklahoma and Kansas. The sub-zero temperatures are resulting in increased demand and decreased supply, causing natural gas prices to spike. Utility companies across the nation are reporting soaring wholesale costs…” Other factors have helped keep prices elevated, including: 1) increased demand as economies worldwide begin to recover from the pandemic; 2) increased Liquid Natural Gas (LNG) exports to other parts of the world, such as Europe, keeping supply lower here; 3) less gas exploration and well construction in recent years; 4) increased use of gas for electricity generation in a hot summer of high air-conditioning use; and 5) Hurricane Ida knocked more than 90 percent of gas production in the Gulf of Mexico offline in late August, according to the Energy Information Administration. (For more on the high gas prices, see coverage by Bloomberg and NPR.) “The boom-bust cycle of this fossil fuel is making consumers pay,” CUB Director of Governmental Affairs Bryan McDaniel said. How are gas prices regulated in Illinois? Natural gas utilities do NOT profit off gas supply. Under state law, they pass on the costs of natural gas to consumers, with no markup. (The companies do make a profit off the rates they charge us to deliver gas to our homes. When utilities ask for delivery rate hikes, CUB challenges them.) But supply prices are […]

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