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Fight brews over ICC rulings

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Illinois

* My most recent syndicated newspaper column ran during the holiday break…

Three of Gov. J.B. Pritzker’s appointees to the Illinois Commerce Commission have not yet been confirmed by the Illinois Senate, including the chair, Doug Scott.

All three unconfirmed appointees have recently voted against the stated interests of trade unions.

Senate President Don Harmon has assiduously courted trade union support and has raised millions of campaign dollars from them.

So, right off the bat, the legislative math is pretty clear, even though Harmon’s office opted not to comment for this column.

Operating Engineers Union Local 150 is one of the most politically engaged trade unions in Illinois. The union blasted an ICC vote in November that “paused” $265 million in natural gas pipeline replacement work next year by Peoples Gas, calling it “a troubling example of political overreach” by “unconfirmed appointees” who are “playing games with peoples’ jobs, heat, and safety as we head toward the holidays and the cold of winter.”

“The war on gas stoves is here,” Local 150 exclaimed in dramatic fashion.

Peoples Gas then asked the ICC to reconsider its decision and restore half of the project money to pay for “critical safety and reliability work,” including finishing up ongoing projects, but the commission declined.

Mark Poulos, Local 150’s top lobbyist, told me last week the ICC’s decision will cost his union members 1.5 million person-hours of work next year, and he’s furiously warning the ICC commissioners’ confirmation hearings might not go so well in the Senate.

Poulos said the ICC’s rulings were part of its “overzealous” quest for “decarbonization” and moving away from the use of natural gas. “They are basically saying ‘F**k you, this system will be obsolete in the next generation,’ ” Poulos claimed, while warning the future may not play out as the commissioners hope.

Citizens Utility Board Executive Director Sarah Moskowitz recently appeared with Poulos on WTTW’s Chicago Tonight program and noted the ICC had granted Peoples Gas a record rate hike after the company reported record profits for six straight years, and that existing state statutes mandate the utility continue emergency and safety maintenance projects.

“They’re kicking and screaming about the fact that they just got a record rate hike but it’s not enough,” Moskowitz said. “When is enough enough?”

Even so, the president of the Chicago Federation of Labor and the president of the Illinois AFL-CIO recently co-wrote an op-ed demanding the legislature consider restarting the pipeline program if the ICC doesn’t reverse itself.

Other labor unions are not taking such a public approach. For instance, Bill Niesman is the business manager of IBEW Local 9, which does a lot of ComEd work, but he politely side-stepped questions about an ICC ruling that rejected ComEd’s proposed rate hike and ordered it to return to the commission within three months with a new plan.

The ICC explained its ruling via press release: “Specifically, the Commission’s decisions found that both utilities failed to sufficiently incorporate customer affordability into their proposals.” The vote was 4-1, with former AFL-CIO President Mike Carrigan voting no.

Niesman said his union is taking a wait-and-see approach, but said the ICC’s low rate of return on equity for ComEd would mean less money for building up the region’s electrical grid. Other union leaders are saying privately that a big Senate confirmation process fight is indeed brewing.

The union leaders aren’t alone. The president of the Chicagoland Chamber of Commerce co-wrote a recent op-ed with ComEd’s CEO about the need for more electrical infrastructure spending, and the Illinois Manufacturers Association supported ComEd’s ICC filing. They’re all worried about insufficiencies with the region’s electrical grid.

Gov. Rod Blagojevich backed down from a fight after he tried to appoint CUB’s then-executive director as the ICC chair, but you don’t get that vibe when talking with Pritzker’s people these days. Just the opposite.

This is Doug Scott’s second stint as ICC chair. He worked in the Pritzker administration to pass the massive Climate and Equitable Jobs Act. His appointment to the ICC in June was seen as a continuation of that mission.

So, it’s doubtful Pritzker will back down. If the Senate decides to side with the unions on the appointments, Pritzker can play a cat-and-mouse game by withdrawing the appointments before the Senate can act, then quickly reappointing them.

The bottom line is that organized labor and the business community are demanding far more robust infrastructure spending, while the governor’s people point to very real cost considerations for consumers. The Pritzker folks believe they will win that political fight.

The column was edited because it was Blagojevich and not Pat Quinn who tried to install the CUB leader at the ICC.

Anyway, your thoughts?

posted by Rich Miller
Tuesday, Jan 9, 24 @ 11:18 am

Comments

Despite the public bravado, there’s gotta be a lot of anguish within the governor’s inner-circle at their miscalculation.

They thought that they were burnishing the governor’s pro-consumer bona fides and positioning him as cleaning up corruption. Important for building the 2028 presidential campaign image.

What they ended up doing was sticking an eye in a key constituency that the governor has cultivated since he first ran. So much invested in making the governor the #1 friend of labor in the country, and now union members are facing layoffs because of his actions. Also, they’ve managed to drive the trades further into the senate president’s arms. And, for what, exactly? An award from CUB?

The trade(s)off wasn’t worth it.

Comment by Moe Berg Tuesday, Jan 9, 24 @ 12:16 pm
I like my gas stove, but I don’t like that much that I am willing to pay $80/month for it.

The gas companies rode the coattails of ComEd’s formula rate to get their own profit machine back in 2013. It was obviously going to end after the ComEd scandal.

And their reaction, with this Governor and this Commission, was to double-down instead of finding an actual path forward for their company. They can only blame themselves.

I am sure we can find some holes for 150 to dig somewhere. Let’s just do it for something else that is much cheaper.

Comment by Oklahoma Tuesday, Jan 9, 24 @ 12:18 pm
–“The war on gas stoves is here,” Local 150 exclaimed in dramatic fashion.–

If this is how local 150 plans to get support from the democratic members, I see this backfiring more than helping.

It has shades of the silly NatGas PR campaigns back in the 80s/90s to convince people that a water heater using NatGas somehow heats water better than using an electric water heater. As if a Joule from NatGas is any different than a Joule from electricity.

Induction stoves are better in every way when compared to NatGas, and as more people have a chance to use them more people are going to arrive at the same conclusion.

Building out electric infrastructure can provide union jobs too. While I can’t read minds, I would be amazed if the Pritzker admin isn’t already planning on using such a pivot in negotiations.

Comment by TheInvisibleMan Tuesday, Jan 9, 24 @ 12:37 pm
My experience with the administration is they don’t do much bravado. They just say what they are going to do and then do it and it’s amazing to me that after so many years people have not cottoned onto that.

Also, having read Rich’s CapFax update this morning about the feds and bribery - I’m truly amazed Local 150 wants to publicly threaten the chair of the ICC in this way. Doesn’t seem smart or effective.

As a cook county taxpayer I can say that my gas bill has tripled the last two years. It’s gotten outrageous. I’m with the Governor on this - someone needs to be a voice for consumers. It’s a genuine shame that Local 150 has decided not to be on the side of those consumers.

Comment by Presscotno Tuesday, Jan 9, 24 @ 12:38 pm
Someone should let Moe know the Governor doesn’t need organized labor and despite this, he has delivered on every promise he’s made them. Being an ally doesn’t mean you get every single thing you want at the expense of reasonable policies. This isn’t 1995. Most of organized labor’s constituency doesn’t even vote for Democrats and he certainly doesn’t need the union’s money. Despite the cynics on this blog, sometimes politicians just do things because it’s the right thing to do. Charging consumers an arm and a leg for construction on projects that aren’t justified is not only good politics, it’s morally the right thing to do.

If the special interests want a fight on this, let me write the commercial script for you on this one…

Man and woman sitting at kitchen table shuffling through bills looking stressed.

VO: The cost of everything has gone up. Groceries, medications, and now add your gas bill to the mix.

Man: How are we going to afford this? We’ve already cut the cable and are trying our best to reduce our grocery bills.
Woman: Joey wants to go to indoor soccer camp this winter, but we’re not going to be able to afford it with heating bills like this.
Man: I’ll tell him.
Woman: No, we’ll tell him together.
Man: I’m so sorry. We both work, and we make decent money. I just never thought this is what our life would look like.

Broll of man and woman talking to their son. Sad looks on their faces.

VO: While you’re cutting expenses to make ends meet, your utility company CEO is making XX millions of dollars per year. They’ve raised prices X percent in the last five years and the C suite got X percentage bonuses. Millions for them and nothing for you. Gov. JB Pritzker is fighting to protect consumers so you don’t have to cut expenses just to heat your home. You have someone on your side and he’s fighting for you– not special interests.

Comment by lol Tuesday, Jan 9, 24 @ 12:41 pm
It’s never enough for the utilities

Comment by og Tuesday, Jan 9, 24 @ 12:46 pm
@lol

“Most of organized labor’s constituency doesn’t even vote for Democrats…”

I am going to need a citation on this one. Yeah, there’s a group of generally white Unions whose membership surely voted more for the WRA than they did JB, but the Dems don’t have statewide super majorities if there wasn’t a lot of political education happening in Union halls.

Comment by Chicago Blue Tuesday, Jan 9, 24 @ 1:38 pm
It will be interesting to see how hard the Trades push the ICC issues. On the one hand, it’s helpful during negotiations to show that they supported the utilities’ position, but they also know how much profit the money hoarders are stashing away. As has been pointed out, building out renewable infrastructure will also require operators, electricians, etc; the Pritzker admin and GA leadership can show support by requiring PLAs to go along with any gov’t support for that build out. So, backing off the ICC could be offered in exchange for support in those other areas; the Trades want to put their folks to work for a fair wage - who employs them is secondary.

Comment by Pot calling kettle Tuesday, Jan 9, 24 @ 1:52 pm
== Most of organized labor’s constituency doesn’t even vote for Democrats and he certainly doesn’t need the union’s money. ==

That’s a good description of the governor’s political mindset, particularly when he’s forced to choose sides between his friends in labor and the enviros. It’s also a bit of a tell about JB’s presidential ambitions and strategy. He can afford to write-off labor contributions — and because a lot fewer tradesmen pull Dem ballots, having the pipefitters or electricians local on board just isn’t as important as it used to be in early primary states. But a lot of those primary voters will be very progressive folks who care deeply about environmental issues. Phasing out the use of gas ovens is a political asset to them.

Comment by Anon404 Tuesday, Jan 9, 24 @ 1:54 pm
The only person who will have to answer for higher consumer bills is the governor. Not one reporter will ask the unions about it. No one will ask the Senate President or the Speaker of the House about it. But the Governor will have to answer multiple times about what he did or did not do to protect consumers and ensure their bills didn’t go up. This isn’t rocket science. There’s one guy who has to eat all the bad things the GA does and it’s the Governor. He’s in his second term. Something tells me he is tired of eating it and doesn’t have to!

Comment by reality Tuesday, Jan 9, 24 @ 2:21 pm
“the Pritzker admin and GA leadership can show support by requiring PLAs to go along with any gov’t support for that build out”

They already did.

Comment by Oklahoma Tuesday, Jan 9, 24 @ 2:48 pm
Underground gas pipelines that are over 100 years old are leaking like a sieve. Today’s gas leak is tomorrow’s explosion. Electricity is the predominant energy source for the future, but the ICC isn’t planning for it.

The time to spend some money is now.
It will only get more expensive later.

Comment by Chicago 20 Tuesday, Jan 9, 24 @ 3:21 pm
You got 120V hot water heaters, heat pumps and clothes dryers to compliment electric stoves, microwaves and toasters. Depends on the age of the city whether gas or electric stoves are the majority. The sooner we switch the better. Every year the cost of our nat gas infrastructure doubles. And the system methane leaks we’re aware of double. Decisions are hard. But not making decisions is expensive.

Comment by Biker Tuesday, Jan 9, 24 @ 3:47 pm
“heat pumps and clothes dryers”

Also, the new heat pump clothes dryers are pretty awesome too. We don’t even need to poke a few holes in our house anymore to vent them. Because there’s nothing to vent anymore.

Comment by TheInvisibleMan Tuesday, Jan 9, 24 @ 3:53 pm
“It will only get more expensive later.”

I mean, have you SEEN the price of whale oil lately? Don’t even get me started on how much it costs to get a coal delivery sent down the coal chute these days.

You’re not wrong, just right for the wrong reasons. Which inevitably leads to incorrect conclusions.

Comment by TheInvisibleMan Tuesday, Jan 9, 24 @ 3:57 pm
“Being an ally doesn’t mean you get every single thing you want”….tell that to the IEC all they have to do is a quick boohoo to the 2nd Floor and they all buckle.

So gas prices going up and costing more, and the solutions give ComEd all the business. Yes the company that paid off everyone, bribed people, and cost the people of Illinois billions in rate hikes and only had to pay a $220 million dollar fine on billions in profit now the ICC and electeds going right back to the family they know.

Here’s the ad:
Sitting at a kitchen table-
What the heck is wrong with Springfield?
Only two years ago ComEd paid $220 million to the Feds for lying to us, bribing elected officials all over the state, and lining the pockets of their fatcat shareholders. Now our elected officials, including Rep A, are going to guarantee that criminal ComEd gets more of our hard-earned money? Why does Rep A care more about criminal ComEd than the people they represent? We can’t handle another guaranteed scam from Rep A and his cronies at ComEd.

Comment by Frida's boss Tuesday, Jan 9, 24 @ 4:17 pm
2/3 of Illinois homes have gas stoves. Those gas ranges have a lifespan of 15 years or better. An electric replacement is going to cost you $1000, more if you need to have your kitchen rewired.

I bet it’s close to 100% of Illinois restaurants.

Are gas ranges less energy efficient? Yes and no.

Are gas ranges more time efficient? Absolutely.

Personally, what I love about gas is its reliability. When the power goes out, I can still heat my house, cook food, wash dishes, bathe.

I’m an environmentalist, but I think those who envision a world without residential natural gas should think about the environmental impact of manufacturing 3 million electric stoves just to replace the gas stoves currently in use in Illinois.

This is a transition best made voluntarily over time.

Comment by Thomas Paine Tuesday, Jan 9, 24 @ 4:50 pm
Just a thought of finding other holes for 150 to dig… In Massachusetts a gas utility is building out a network of underground pipes to partner with ground source heat pumps that use water (sucking heat out of really cold air is difficult and not as efficient as sucking heat out of water that is always at 45-50 degrees year round). Worth exploring in IL if people need to keep digging holes. Electricity prices are incredibly stable over time, unlike the gas price yo-yo. Then add in the huge and wasteful pipe replacement costs. Then there is the climate risk, since it was confirmed just today that 2023 was the hottest year on record. It’s only going to get hotter and more dangerous the more gas we burn. https://www.wbur.org/news/2023/06/13/networked-geothermal-eversource-heat-pump-gas-utility

Comment by thrudasmog Tuesday, Jan 9, 24 @ 5:23 pm
“2/3 of Illinois homes have gas stoves,” while this is a true statement, 2/3rds of all US residential stoves are electric. No worries about making more electric stoves. Most of the stoves in the US are electric. Water heats up faster too.

Comment by Bimer Tuesday, Jan 9, 24 @ 9:01 pm
- “ You’re not wrong, just right for the wrong reasons. Which inevitably leads to incorrect conclusions.”

How much money will be saved by not paying out for damages and injuries for just one leaky gas main explosion?

Higher infrastructure upgrade demand equals higher costs for raw materials. Planning ahead avoids paying a premium. When the electrical infrastructure can’t meet demand loads who pays for the economy grinding to a halt?

Everyone has an opinion, but not everyone’s opinion is of equal value.

Comment by Chicago 20 Tuesday, Jan 9, 24 @ 10:33 pm
Also worth mentioning - The federal Inflation Reduction Act sends a lot of money to Illinois consumers for switching to efficient electric appliances, including induction stoves. When the program goes live in IL later this year (still being set up), people will be able to get an up to $840 rebate for one of those fast and clean induction stoves. And you can get up to $4000 for a new breaker panel too. The smaller your income the bigger the rebates. There are several other rebates too for other appliances, so worth checking out what is coming to IL soon here: https://www.rewiringamerica.org/app/ira-calculator

And if you live in ComEd territory, you can already get a $100 rebate for an induction cooktop, which can pay for the entire cost of a one burner portable unit. https://comedappliancerebates.com/

Comment by thrudasmog Wednesday, Jan 10, 24 @ 8:44 am