SPRINGFIELD, ILLINOIS (March 25, 2019) — Two major pieces of energy legislation from the state Capitol have led to Illinois consumers paying billions of dollars in higher electric rates, a trio of consumer groups cautioned today. Representatives of AARP Illinois, The Building Owners and Managers Association of Chicago, and The Chemical Industry Council of Illinois today released the results of a study of electric rates for consumers of ComEd and Ameren Illinois under the two major pieces of legislation: The Energy Infrastructure Modernization Act of 2011 that allowed the utilities to create the SmartGrid program and make other electric systems upgrades, and the Future Energy Jobs Act of 2016, that gave state credits to subsidize two nuclear plants owned by ComEd’s corporate affiliate Exelon Generation. The study found:
- The law changes under the Energy Infrastructure Modernization Act allowed Ameren Illinois and ComEd to recoup up to $34.6 billion in capital costs to upgrade their distribution systems and earn a return on those investments through automatic increases in distribution rates on consumers’ electric bills. Between 2013 and 2018 their customers paid $4.7 billion more in distribution rates than they did in 2013, and are estimated to pay cumulative increases of $14.8 billion more from 2013-2027. The cumulative increases in distribution rates of nearly 200 percent are paid by all consumers — residential, commercial and industrial.
- The Future Energy Jobs Act allowed Ameren Illinois and ComEd to collect payments from customers for recovering pass-through costs, for capital and other guaranteed returns, and from new programs to encourage energy efficiency and reduced environmental impact such as Zero Emission Credit subsidies for the Exelon nuclear plants. While some customers’ electric rates dipped in the short term, ComEd and Ameren customers rates will rise starting in 2019. By 2027, ComEd and Ameren Illinois customers will pay an extra $4.6 billion in higher rates from FEJA.
- All together, EIMA and FEJA will cost ComEd and Ameren Illinois ratepayers an extra $19.4 billion between 2013 and 2027.
The three groups say the analysis should send a strong message to Illinois policymakers to tread carefully of any future energy legislation. “Many of the older adults we advocate for every day are on fixed budgets and deserve affordable, reliable energy to cool and heat their homes,” said Julie Vahling, associate state director of AARP Illinois. “In developing energy policy going forward, costs should always be a central consideration. We hope this study will serve as an important reminder that energy legislation has short-term and long-term implications that should be carefully considered as they are developed.” “Building owners in Chicago’s central business district must constantly monitor landlord and tenant expenses to remain competitive,” said Ron Tabaczynski, Director of Government Affairs for BOMA Chicago. “For downtown office buildings, energy costs are the second highest building expense after property taxes. This report highlights an important challenge we face in Illinois to remain competitive and create jobs and new economic opportunities.” “Our members include businesses of all sizes across the state of Illinois from large industrial to middle-market and small businesses that have to carefully balance revenues and expenses to keep the doors open and meet customers’ needs,” said Mark Biel, CEO of the Chemical Industry Council of Illinois. “Rising electric rates are one more reason for our members to question how successful they can be in Illinois. We urge Illinois policymakers to review this study of cost impacts of previous energy legislation, and keep such impacts top of mind in considering any energy legislation moving forward.”
