* Excerpt of Gov. JB Pritzker’s op-ed today in the Sun-Times…
With the passage of the Climate and Equitable Jobs Act (CEJA) 18 months ago, electric utilities were forced to accept additional consumer rate protections enforced by the Illinois Commerce Commission (ICC), but unfortunately gas utilities were left untouched.
Now, the skyrocketing and unpredictable natural gas market will cause well-resourced consumers to install electric heat pumps or build electric heated homes. Those who make the switch will be protected by the regulatory authority of the ICC, which can require transparency and accountability when it comes to prices consumers pay for electricity.
But those who cannot afford to make the shift and remain reliant on natural gas — most of whom are lower-income Black and Brown people and rural residents in Illinois — will have almost no regulation on prices charged by their utilities. The cost to consumers will continue to rise if we leave unchecked the gas utilities’ desire to charge consumers an ever increasing amount for expansion of their natural gas infrastructure. […]
To hold gas utilities accountable and protect consumers, we should enact new laws requiring:
• An audit of the gas distribution infrastructure, so we know how our money has been spent in the last decade;
• Gas distribution planning, so the ICC can better rule on which expenses are necessary;
• Safety standards for gas pipes and distribution, so we can accurately determine what must be replaced and we don’t end up replacing infrastructure unnecessarily.
• An end to the qualified Infrastructure Plant (QIP) charge on consumer bills, which is costing customers as much as $40 per month even with little or no gas usage;
• Energy efficiency programs must be adopted for gas utilities, as they are on electric utilities;
• Require utilities to offer lower rates for low-income customers, so they can get additional relief;
• Allow the ICC to require gas companies to maximize federal funds, so we can minimize the burden on Illinois ratepayers;
• Have performance-based regulations for gas utilities, as we have for the electric utilities, so we can ensure the gas companies’ profits are as promised in the rate making process;
• Pay for the system using volumetric rates, not customer charges — so those who use more gas pay more;
• Improve compensation for intervenors (those who advocate on behalf of consumers in rate cases);
• Initiate new protections against shut-offs and additional payment plan mechanisms.
Thoughts?
- NoMoreMC - Friday, Mar 10, 23 @ 3:07 pm:
Would be nice to see a bullet point on the underground storage facilities. They mention distribution and gas pipes, but the underground storage is a completely different animal with its own unique issues. If those wells start leaking, we have big problems.
- very old soil - Friday, Mar 10, 23 @ 3:28 pm:
Many rural residents rely on propane. It is now my second-highest yearly expense and I keep the thermostat at 67. Apparently, my brother who buys from the same company pays 70 cents less because he uses a lot more than I do.
- George - Friday, Mar 10, 23 @ 3:43 pm:
Its hard to take any of it too seriously after reading about CEJA keeping rates low. Good night.
- Jibba - Friday, Mar 10, 23 @ 3:44 pm:
I’m sure that insiders have better-informed opinions, but all of those certainly seem reasonable at first glance. Maybe the volumetric usage stuff needs to me modulated…a facilities charge might be relevant.
On another note, they should regularly calibrate meters (every 5 years minimum). I had mine measured when I put in a large gas appliance, and the pressure to the meter was far lower than expected, meaning I paid for gas that was not delivered. The gas guy was more surprised that I somehow found out about it.
- DuPage - Friday, Mar 10, 23 @ 3:44 pm:
Go back to charging for gas strictly by the amount used. Blend all the extra charges (meter charge, infrastructure charge, etc. into the price per 100 cubic feet). Then if a customer uses only a small amount of gas while on vacation, they would only pay for the amount used.
- Abe - Friday, Mar 10, 23 @ 3:51 pm:
combined with this morning’s ICC announcement, a very positive development for IL utility customers
- Pot calling kettle - Friday, Mar 10, 23 @ 3:53 pm:
==Many rural residents rely on propane.==
That’s what I was wondering…what about LP?
Some considerations: You can own your own tank or use one provided by the distributor. The primary downside of owning your own is maintenance costs. The primary downside of using one that is provided is that you are locked into one company.
The cost of LP can go up and down quite a bit over the course of a year (especially in the winter). Some providers offer the option of contracting for a certain volume for the winter season (in May-June), but you have to put money down and you are making a bet on the future price and how much you will need. The Federal Energy Information Agency used to project the winter price in April or May, but for some reason, they stopped doing it a few years ago (they now provide an outlook in October, but that’s too late for contracting at the lower summer price).
- Donnie Elgin - Friday, Mar 10, 23 @ 4:10 pm:
“Now, the skyrocketing and unpredictable natural gas market will cause well-resourced consumers to install electric heat pumps or build electric heated homes”
That is quite the assumption.
- Sue - Friday, Mar 10, 23 @ 4:16 pm:
In case no one noticed. Natural gas prices have imploded. They are now below prepandemic prices. Govt screwing around with market pricing often backfires