COVID-19 Archives | Citizens Utility Board

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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Could alternative suppliers come knocking again soon?

Hannah — Wed, 04 Aug 2021 18:31:17 +0000

At the start of the COVID-19 pandemic, state utility regulators directed all alternative electric and natural gas suppliers to suspend their door-to-door sales because of the transmission risk. But the Illinois Commerce Commission (ICC) could soon allow doorstep sales now that Illinois is in phase 5 of its reopening plan. The proposed orders do not require vaccination for sales representatives, but masks would be mandatory. The orders, which were issued in late July, are not yet finalized but are expected to be soon. Previous ICC orders allowed alternative gas and electric suppliers to resume in person sales in retail establishments, such as movie theaters. Regardless of what happens, remember you don’t have to open your door for anyone. If door-to-door marketing does resume, be on alert: Gas and electricity with an alternative supplier generally costs more than sticking with your utility, which is required by law to pass the cost of gas or electricity onto ratepayers at no markup. Alternative suppliers can charge whatever rates they want. Consumers often believe they’re saving money when they’re signing up for a deal that will likely cost them much more. In fact, according to an ICC report, Illinois consumers collectively paid $431 million more with alternative electricity suppliers in the last year than they would have with the regulated utility. Losses total more than $1 billion since 2015. Issues with alternative suppliers are among the most frequent complaints CUB hears through its Consumer Hotline (1-800-669-5556). We often hear from consumers about manipulative sales calls, skyrocketing rates and misleading marketing materials. Just last month, the ICC approved a settlement that requires alternative supplier Great American power to pay $325,000 after consumer advocates accused it of failing to comply with state regulations governing alternative suppliers.

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CUB urges Illinois consumers to contact their utilities to access consumer protections

Hannah — Fri, 26 Mar 2021 14:33:49 +0000

The Citizens Utility Board is urging Illinois consumers to contact their utility companies immediately to take advantage of consumer protections available to them due to the pandemic. A state moratorium on shutoffs expires on April 1, so it is vital that people who are struggling to afford their bills get in touch with their utilities now. “If you are having a hard time paying your bills, immediately contact your utility to find out what protections are available,” CUB Executive Director David Kolata said. “The moratorium expires at the end of the month, but consumers can still prevent disconnection by reaching out to their utility.” (Please read our new fact sheet on protections available for consumers.) Last year, the Illinois Commerce Commission (ICC) approved landmark consumer protections negotiated by consumer advocates—including CUB— and major utilities, which included a moratorium on shut offs and bill payment assistance funds. The moratorium ends on April 1. CUB, the Illinois Attorney General’s office, the City of Chicago, the ICC, Legal Aid, Communities Organizing and Family Issues and the major utilities have now entered into another agreement to address post-moratorium issues. Disconnection notices will be sent out in phases based on the amount of the customer’s arrearage, starting with customers who have the highest arrearage. The following protections are available: Payment Plans ComEd, Ameren, North Shore Gas and Peoples Gas customers that call their utility can get on an 18-month deferred payment arrangement (DPA) for the amount owed that is not covered by other financial assistance. Customers earning up to 300 percent of the federal poverty level (FPL) will get the DPA for 0 percent down. Those above 300 percent FPL will be required to put 10 percent of the past due balance down. Customers can self-certify income level and will not need to provide documentation to get those protections. Nicor will provide 24-month DPAs to all customers that call through July 31. Customers that call after receiving a disconnection notice will be protected against disconnection until June 30, 2021, if they earn up to 300 percent of the FPL. Customers that do not make a payment or contact their utility to enter into a DPA after receiving a disconnection notice will be eligible for disconnection. Bill Payment Assistance Customers that previously received Bill Payment Assistance funds will again be eligible for additional funds under criteria established by each utility. ComEd: Customers up to 300 percent of the FPL can get up to $500, or possibly more for reconnection assistance (depending on how quickly funds are depleted). Peoples Gas and North Shore Gas: Customers up to 300 percent of the federal poverty level can get up to $500 or, if used for reconnection assistance, $1,000. Ameren: Customers up to 300 percent of the federal poverty level can get up to $400 for electric bills and $300 for gas bills. Nicor: If a customer has a balance more than $300 outstanding for at least 60 days, they qualify to get up to $500 in assistance. If the customer received Bill Payment Assistance funds in the fall, they are eligible again this spring, but the total assistance cannot exceed […]

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CEJA sponsors reintroduce bill, pledge to pass legislation by May

Hannah — Tue, 09 Feb 2021 21:51:51 +0000

Members of the Illinois General Assembly and the Illinois Clean Jobs Coalition today reintroduced a stronger Clean Energy Jobs Act, with a pledge from bill sponsors to pass the comprehensive energy legislation in the General Assembly by May 2021. “The days of ComEd, Exelon, Ameren, and big fossil fuel companies meeting in a backroom to decide energy policy are over,” State Rep. Ann Williams said at the news conference held Tuesday morning. “We need to put the people of Illinois first, not utility company profits, and that’s what CEJA does.” The Clean Energy Jobs Act (CEJA) is the only bill in Springfield that moves Illinois to 100 percent clean energy by 2050, creates thousands of much-needed equitable jobs and holds utilities accountable without raising taxes, hiking electric bills, or giving bailouts to corrupt utility companies. (Sign our petition and tell your legislators we need CEJA now!) Supporters say the need for comprehensive, consumer-friendly energy legislation is urgent in the face of powerful polluters and the growing impact of climate change. Guadalupe Bueno didn’t have a choice to become a climate activist. Her hometown, Waukegan, is home to a coal plant and numerous superfund sites. In a video played at the news conference, Bueno said CEJA can’t wait, especially in communities like her own, left in the lurch when coal companies cut and run, leaving joblessness, contaminated work sites and property tax revenue deficits in their wake. But as CEJA’s House sponsor Williams points out, Illinois is up against three other major crises at the moment: COVID, social and economic injustice and corruption. While CEJA isn’t an answer to the state’s every woe, the bill does include provisions that will help Illinois communities recover from the pandemic, which has left many unemployed and struggling to afford their utility bills. This is especially true among Black and Latinx communities, which have been hit disproportionally hard by the pandemic. “Our communities have borne the brunt of the health problems associated with pollution, and we have taken a huge toll in death and joblessness from COVID-19. CEJA is a key component to economic recovery and building back better,” said State Rep. Kam Buckner, House chair of the Illinois Legislative Black Caucus. “We don’t just want electric vehicle charging stations, rooftop and community solar, and energy efficiency projects completed in Black neighborhoods and communities. We want Black workers installing them, and we want Black-owned businesses designing the projects and getting them built,” said State Sen. Robert Peters, Senate chair of the Illinois legislative Black Caucus. “CEJA is the only comprehensive energy bill that delivers on that promise.” CUB supports the bill because it protects utility bills by expanding energy efficiency programs and implementing electricity market reforms. CEJA also is the only bill that calls for fair compensation for ComEd customers after federal prosecutors caught Illinois’ largest electric utility in a bribery scandal to pass legislation that led to a new system of setting rates and opened the door to multiple increases. CEJA would replace that system, called formula rates, with one that is more fair for consumers and better protects them from unfair rate hikes. […]

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Weatherization assistance, solar tax credits included in COVID stimulus package

Hannah — Mon, 04 Jan 2021 21:36:05 +0000

Many consumers across the U.S. should soon see $600 payments in their bank accounts, thanks to a $900 billion stimulus package passed by Congress. Although headlines focused on financial assistance, the federal legislation also encourages energy efficiency and extends an important benefit for people who want to go solar. The relief bill became law on Dec. 27. Here’s a summary of its energy-related provisions: Weatherization The package includes the Energy Act of 2020 and the Energy for the Environment Act, which contain new provisions for the Department of Energy’s (DOE) Weatherization Assistance Program. The federal program reduces energy costs for low-income households by increasing their efficiency. According to the American Council for an Energy-Efficient Economy, the bill helps the program address more than weatherization, and now includes assistance for health and safety issues in homes as well as solar installations. The DOE program creates 8,500 jobs and provides weatherization services to about 35,000 homes each year. These households save, on average, $283 each year as a result of the program. To apply for weatherization assistance, visit this website. Solar tax credit The package also extends many special energy tax credits that were set to expire at the end of 2020. Notably for Illinois consumers, the Energy Investment Tax Credit (ITC) was extended. This ITC allows consumers to deduct a percentage of their solar project costs from their federal taxes. For solar installations that begin construction by the end of 2022, consumers can deduct 26 percent. The benefit drops to 22 percent for installations that begin by the end of 2023, and in 2024, the credit disappears entirely for residential customers. This incentive does not depend on how much energy your solar system produces, but you must pay federal taxes to benefit. For more information on the solar ITC, visit this Department of Energy fact sheet. The package also includes a 5-year 30 percent ITC for new offshore wind facilities, including inland waters like the Great Lakes. Power grid upgrades Electric grid modernization was another dominant feature of the package’s utility provisions. Congress authorized programs to model, test and develop technologies for a more secure, reliable grid. Along with a slew of other provisions to move along modernization, the Department of Energy was permitted to work on integrating renewable energy and electric vehicles onto the grid. Water Bill Assistance The legislation also provides $638 million in funding to the Department of Health and Human Services to create a new Low-Income Household Drinking Water and Wastewater Emergency Assistance Program. The new program and funding would be used to help low-income households afford their water bills. The relief package also includes: The Protecting Our Infrastructure of Pipelines Enhancing Safety (PIPES) Act of 2020, which directs the Pipeline and Hazardous Materials Safety Administration to create rules requiring operators of natural gas gathering, transmission, and distribution pipelines to conduct methane leak detection and repair programs. A national goal to allow at least 25 gigawatts of renewable electricity on federal lands. Note: The legislation also created the Emergency Rental Assistance program, providing $25 billion in funding for renters that can go to rent and utilities. We […]

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CUB urges consumers to call utilities, access protections

Hannah — Thu, 17 Dec 2020 15:50:18 +0000

CUB is urging Illinois consumers to contact their utility companies to take advantage of consumer protections available to them due to the pandemic. “If you are struggling to pay your bills, immediately contact your utility to find out what protections are available, and set up a plan to prevent disconnection,” CUB Executive Director David Kolata said. “These protections are available for a limited time and only for customers who call their utility and state they are experiencing financial hardship because of the pandemic.” In June, the Illinois Commerce Commission (ICC) approved landmark consumer protections negotiated by a coalition of consumer advocates—including CUB—and these utilities: Ameren Illinois, Aqua Illinois, ComEd, Illinois American, Nicor Gas, North Shore Gas, Peoples Gas and Utilities Inc. Most of these utilities have agreed to a moratorium on disconnections until March 31, 2020, with the exception of Aqua and Illinois American. These two utilities agreed to a moratorium for low-income customers and those experiencing financial hardship through March 31, 2021. The following protections are available only to customers who call and state they are experiencing hardship due to the pandemic: Waiving deposits. Until Dec. 26, utilities must waive deposits connected to late payment or non-payment, arrearages, or credit-related issues for customers experiencing financial hardship. Also, utilities will not report late payments and nonpayment for active customers to credit bureaus and reporting agencies. Consumer-friendly payment plans. Utilities are currently offering longer Deferred Payment Arrangements (DPAs)—plans that help people pay off debt with a utility. DPAs for customers who are LIHEAP-eligible or express financial hardship will not require a down payment and will be extended to 24 months. North Shore and Peoples Gas will be extending the availability of the 18- and 24-month DPAs through March 31, 2021. CUB is encouraging other utilities to follow suit. Some utilities also have a Bill Payment Assistance Program that offers some debt forgiveness for eligible utility customers who apply. Each utility’s program will differ in terms of available funding, the amount allotted to each customer and the way it is administered. CUB urged consumers to ask their utility companies about the program. Consumers should contact their utilities to access these consumer protections: Ameren Illinois — 1-800-755-5000 Aqua Illinois — 1-877-987-2782 ComEd — 1-800-334-7661 Illinois American Water — 1-800-422-2782 Nicor Gas — 1-888-642-6748 North Shore Gas — 1-866-556-6004 Peoples Gas — 1-866-556-6001 Utilities Inc. — 1-800-831-2359

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Three Important Steps To Keep from Getting Your Utility Service Cut Off During the Pandemic

Celeste — Thu, 12 Nov 2020 21:20:51 +0000

If you’re struggling to pay your utility bills during this public health crisis, CUB has some guidance on what steps to take. 1) Call Your Utility: As the utility company is the entity issuing the bill and the only entity with access to your account, your first call—no matter the issue—should always be to your utility. This is especially true now when many utilities have consumer protections that are available to customers who reach out to them directly. Contact your utility, express financial hardship and ask what consumer protections they offer. Those protections include: A moratorium on shut-offs until April 1, 2021. (Note: Since this blog was written, the moratorium has been extended to all customers. BUT we still recommend you call your utility to get on a plan to pay off your bills.) Payment plans that allow you to pay off your debt with the company in equal monthly installments for up to 24-months. (Not all companies offer this, but it is an important detail to check.) A bill-payment assistance program–if you have already applied for funding from the Low Income Home Energy Assistance Program (LIHEAP) already. Call your utility companies at these numbers: Ameren Illinois – 1-800-755-5000 Aqua Illinois – 1-877-987-2782 ComEd – 1-800-334-7661 Illinois American Water – 1-800-422-2782 Nicor Gas – 1-888-642-6748 North Shore Gas – 1-866-556-6004 Peoples Gas – 1-866-556-6001 Utilities Inc. – 1-800-831-2359 2) Call LIHEAP If you are in need of financial assistance to help pay your gas and electric bills, start with LIHEAP, 1-877-411-9276 (WARM). If you do not qualify or are in need of additional assistance, the utility also provides a bill-payment assistance program but you MUST try to apply for LIHEAP first. (Here are our infographics about LIHEAP benefits, in English and Spanish.) 3) Call CUB. If you don’t feel you have been given complete information by your utility, contact the Citizens Utility Board (CUB), at 1-800-669-5556, or through its online complaint form: https://www.citizensutilityboard.org/complaint-form/

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CUB releases new infographics, including COVID-19 alert

Celeste — Fri, 30 Oct 2020 20:28:33 +0000

Below is our gallery of new infographics, including an important update on utility consumer protections during the COVID-19 crisis. CUB thanks the Heising-Simons Foundation for a generous grant that helped us create this series of infographics about important consumer issues. Important utility customer protections during the COVID-19 Crisis Are you with an alternative electric supplier? Green Energy Suppliers Shopping for LEDs? Three things to know about the most popular energy efficient lighting choice. Real-Time Pricing

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CUB alert: People struggling to pay utility bills should call their utilities to take advantage of landmark consumer protections

Celeste — Wed, 14 Oct 2020 16:46:49 +0000

CUB urges Illinois consumers having difficulty paying their utility bills during the pandemic to contact their utility companies to take advantage of unprecedented consumer protections available to them. “Anybody struggling to pay their bills during the pandemic should immediately contact their utility to find out what protections are available, and to set up a plan to prevent disconnection,” CUB Executive Director David Kolata said. “These protections are available for a limited time, and only for customers who call their utility and say they are experiencing financial hardship because of the pandemic.” In June, the Illinois Commerce Commission (ICC) approved landmark consumer protections negotiated by a coalition of consumer advocates and these major utilities: Ameren Illinois, Aqua Illinois, ComEd, Illinois American, Nicor Gas, North Shore Gas, Peoples Gas and Utilities Inc. Kolata stressed that the following protections are available only to customers who call and state they are experiencing hardship due to the pandemic: A moratorium on disconnections: The utilities have agreed to extend the moratorium through March 31, 2021 for all consumers who qualify for the Low Income Home Energy Assistance Program (LIHEAP) OR those who call the utility and simply say they are financially impacted by COVID-19. (Note: For most utilities, this is not a blanket moratorium. It will only be given to individuals who call.) Waiving deposits. Until Dec. 26, utilities must waive deposits connected to late payment or non-payment, arrearages, or credit-related issues for customers experiencing financial hardship. Also, utilities will not report late payments and nonpayment for active customers to credit bureaus and reporting agencies. Consumer-friendly payment plans. Until Dec. 26, utilities are required to offer longer Deferred Payment Arrangements (DPAs)—plans that help people pay off debt with a utility. DPAs for customers who are LIHEAP-eligible or express financial hardship will not require a down payment and will be extended to 24 months. Reminder:No documented proof of hardship is required to qualify for these consumer protections. But people must call their utilities and state they are experiencing hardship. The utilities also have set up a Bill Payment Assistance Program that offers a certain amount of debt forgiveness for eligible utility customers who apply. Each utility’s program will differ in terms of available funding, the amount allotted to each customer and the way it is administered. CUB urged consumers to ask their utility companies about the Bill Payment Assistance Program. Contact numbers for the major utilities offering these consumer protections: Ameren Illinois– 1-800-755-5000 Aqua Illinois– 1-877-987-2782 ComEd– 1-800-334-7661 Illinois American Water– 1-800-422-2782 Nicor Gas– 1-888-642-6748 North Shore Gas– 1-866-556-6004 Peoples Gas– 1-866-556-6001 Utilities Inc.– 1-800-831-2359 Read our fact sheet on the consumer protections.

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Historic consumer protections: Urge the ICC to approve this COVID-19 relief plan

Celeste — Tue, 16 Jun 2020 14:55:24 +0000

Illinois regulators this week will consider some of the strongest COVID-19 utility consumer protections in the country. Developed through weeks of discussion among consumer advocates and major utilities, this plan could serve as a national model to help utility customers struggling to pay their bills during the economic crisis. But we aren’t quite over the finish line yet—we need your help today to make these protections a reality in Illinois. Every day, we talk to utility customers who are worried about their bills, so this would be a big step toward giving them relief. Please read more about these historic consumer protections and urge the Illinois Commerce Commission to approve the plan this Thursday. This is the ICC’s chance to stand up for consumers and build on the consumer protections the regulatory body created back in March. Join us in taking action and urge the ICC to approve this relief plan and double down on its commitment to protect Illinois utility customers.

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