A national leader!
New law launches ICC reforms, sparks groundbreaking efficiency programs
July 10, 2009—A bill that brings reforms to the Illinois Commerce Commission (ICC) and could transform the Land of Lincoln into a national energy-efficiency leader has been signed into law by Gov. Pat Quinn.
New law launches ICC reforms, sparks groundbreaking efficiency programs
"That's what this bill does. It takes care of people," said Gov. Quinn, flanked by consumer advocates, including CUB Executive Director David Kolata, at the recent bill-signing ceremony. "We have to have a green way of thinking, a green way of acting. We have to be more energy efficient."
Illinois Attorney General Lisa Madigan led the charge for SB 1918, and CUB's policy team spent long hours in Springfield fighting for it. The wide-ranging bill:
1. Stops ICC commissioners from leaping to lucrative utility-industry jobs for two years after they leave their posts.
2. Bans secret meetings between ICC members and utility companies gearing up for a rate hike. In the past, utilities used these “behind-closed-doors” meetings to advance their case for higher rates before it was even officially filed. “Consumers don’t have a fair shot when utilities can hold secret meetings to push rate hikes and ICC members can take the expressway to lucrative utility jobs,” said CUB Board Secretary George Miller, of Melrose Park. “SB 1918 begins to level the playing field for consumers.”
3. Creates a “natural gas portfolio standard” that would require gas utilities to make investments in energy efficiency and show results by reducing gas usage by 8.6 percent by 2020—or face fines. That could save consumers about $10 billion over the next couple decades, the Midwest Energy Efficiency Alliance has estimated. The utilities would meet these targets by offering consumers incentives to invest in energy efficiency. New statewide programs will likely be available by June, 2011.
4. Creates an “on-bill financing” program, likely to begin in early to mid-2010, that would allow residential consumers to purchase money-saving appliances without making any payments upfront. They would pay off the investment through a low-interest loan on their gas or electric bill, while at the same time benefiting from the efficient upgrade.
Energy-efficient products cost less over time than their energy-guzzling counterparts, but the higher upfront price tag prevented many people from buying them. On-bill payment programs allow a much larger group of consumers to invest in efficiency. Even non-participants will benefit as reductions in demand lead to lower wholesale energy prices. "Energy efficiency is the single best way to keep electricity and natural gas bills in check," Kolata said. "If done right, SB 1918 can give a big boost to Illinois’ efforts to provide working families with a cleaner, more reliable and more affordable energy future."
Energy-efficient products cost less over time than their energy-guzzling counterparts, but the higher upfront price tag prevented many people from buying them. On-bill payment programs allow a much larger group of consumers to invest in efficiency. Even non-participants will benefit as reductions in demand lead to lower wholesale energy prices. "Energy efficiency is the single best way to keep electricity and natural gas bills in check," Kolata said. "If done right, SB 1918 can give a big boost to Illinois’ efforts to provide working families with a cleaner, more reliable and more affordable energy future."