In the closing days of the General Assembly’s fall session, Illinois lawmakers have moved forward with transformative energy policies that aim to enhance the efficacy of wind and solar power through substantial battery storage. Yet, the financial impact on energy bills remains a hotly debated issue.
The Illinois House approved the expansive energy bill, with Democratic leaders asserting it will eventually reduce the financial burden on consumers caused by recent utility rate hikes. However, Republican members have raised concerns about an additional surcharge on consumers’ monthly bills to fund the battery installations.
The energy bill, spanning 1,020 pages, passed the House with a vote of 70-37, reflecting partisan divisions. The Senate was expected to review the legislation on the final day of the session.
While the energy reforms advanced, a separate initiative to overhaul and finance the Chicago-area public transit system faced delays. Key legislative leaders continued private negotiations without public progress.
Democratic legislators, who hold a supermajority, have struggled to allay Republican fears, particularly from downstate representatives who cite rising utility rates as a major concern. The energy initiative is part of a broader response to increased electricity demand, partly driven by the 2021 Climate and Equitable Jobs Act and the growth of data centers fueled by AI technology.
State Rep. Jay Hoffman, the bill’s primary sponsor in the House, emphasized the urgency of passing the legislation, warning of severe financial repercussions without immediate action.
“Some would say let’s do nothing. Let’s put our head in the sand and act like just everything’s going to be OK and do nothing. Don’t do planning. Don’t put more capacity on the grid. Don’t make sure that we have energy efficiency,” he said. “But let me tell you this: Without immediate actions, Illinois stands to pay $9.5 billion in increased energy costs by 2034. Utility bills will directly increase by $1 billion by 2030, and Illinois will lose more than 50,000 manufacturing and energy jobs because of the federal budget cuts.”
Despite assurances, Republicans like state Rep. Dan Ugaste remain skeptical, citing unfulfilled savings promises from previous initiatives. State Rep. Brad Halbrook criticized the focus on green energy, suggesting the promises of cost reduction have not been realized.
Democrat Ann Williams defended the 2021 law and the new bill’s battery storage component, arguing it would boost grid capacity and manage costs. “Affordability is at the very heart of this energy package and a direct response to consumer concerns about rising utility rates,” she stated.
The proposed addition of 3 gigawatts of battery storage by 2030 aims to support renewable energy sources and stabilize the electricity supply. This involves significant upfront investment, funded by consumer surcharges, but is projected to decrease future electricity costs.
The Illinois Power Agency estimates that by 2031, the storage systems would reduce Ameren residential bills by $3.90-$8.28 and ComEd bills by $1.46-$1.85 per month. Including all components of the bill, the reductions could be even greater.
In a significant policy change, the Illinois Commerce Commission would gain authority to sign long-term contracts for new energy sources, a shift from the deregulation policies of 1997. This addresses the slow adoption of renewable sources due to grid operators’ hesitance.
The energy bill also introduces initiatives for geothermal energy networks, repeals the moratorium on new nuclear projects, and increases subsidies for energy-efficient home retrofits.
Mark Denzler of the Illinois Manufacturers’ Association expressed skepticism about the projected savings, warning of potential rate hikes. Jen Walling of the Illinois Environmental Council supports the bill, highlighting its counteraction to federal policy changes and its expected consumer savings.
Transit Bill Faces Uncertainty
Meanwhile, the future of a transit funding plan remains uncertain. Governor JB Pritzker rejected a plan from House Democrats to finance Chicago transit improvements through new taxes, including a streaming service tax, event surcharges, and a tax on billionaires’ unrealized gains.
Governor Pritzker discussed potential revenue options with legislative leaders but has opposed broad tax increases, leaving the transit bill’s fate in limbo. With no new bill introduced, the General Assembly is not scheduled to reconvene until next year.
Original Story at www.chicagotribune.com