Illinois has launched its first-ever regulatory initiative to discuss the future of home heating in Illinois. So what is the “Future of Gas” proceeding all about? Please read the Q&A below, and consider using our online form to submit a public comment.
What is the Future of Gas proceeding?
Launched in March of 2024, the Illinois Commerce Commission’s (ICC) Future of Gas proceeding is a forum for stakeholders to examine how the gas utility regulatory framework may need to evolve as the state advances its clean energy goals and more consumers move away from gas for heating and cooking.
“The main goal of the proceeding is to explore issues tied to decarbonization of the gas distribution system, including how the gas system may need to adapt. Additionally, the proceeding will develop recommendations for any future Commission action and any necessary legislative changes,” the ICC says.
The process has unfolded in phases. Phase 1, held in 2024, scoped out the issues to be studied. Phase 2, still underway, has consisted of workshops where participants explore the costs and feasibility of various decarbonization pathways, and what legislative and regulatory solutions might be needed.
A consultant-led “Decarbonization Pathways Study” is now underway. This study will provide a quantitative analysis of multiple scenarios and their impacts on important factors like cost, reliability, and equity.
The Future of Gas proceeding will culminate in a final report from the facilitator and ICC staff, summarizing the findings, developing recommendations for Commission action, and identifying any legislative changes that may be needed to ensure an optimal transition for Illinois. Throughout the process, stakeholders have been able to submit comments and feedback on the proceeding’s design and workshop content.
Why should we care?
As a consumer advocate, CUB focuses on how developments in the gas industry would impact our bottom lines. And choices in how we invest in the system today will have a major financial impact on us now and for generations to come.
Impacts on the gas bills we pay now: Over the last 15 years, CUB has battled serial rate hikes by the major gas utilities: Ameren Illinois, Nicor Gas and Peoples/North Shore Gas. Under utility regulation, gas utilities earn a return on their capital investments, so they are incentivized to overspend. We pay for the utilities’ aggressive infrastructure investments through delivery charges on our gas bills, and paying off those investments will take decades. Thanks to this spending spree, research shows, gas bills are getting more expensive even though customers are using less gas. It used to be that delivery charges only made up about a third of gas bills, but now delivery costs have ballooned to roughly two-thirds of bills.
Impacts on the gas bills we will pay in the future: As gas service becomes more expensive, more people are seeking other options and the transition to other heating and cooking sources has already begun. In recent years, electric heat pumps have outsold gas furnaces in the United States. Electrification–moving away from gas appliances–is becoming an attractive option for more and more consumers who like the efficiency of heat pumps and want to swap out their gas stove for an electric or induction model to reduce indoor air pollution.
Even though it will be a long-term transition, it’s important to plan for it now to make sure it’s a managed, thoughtful transition. Without proper planning, CUB is deeply concerned about the possibility of “the utility death spiral.” That’s where customers – for reasons having to do with cost, health, or climate concerns–leave their gas utilities and electrify their homes, forcing those who remain on the gas system to shoulder the growing costs of maintaining that system. It is vital that we plan for it to make sure everyone has access to affordable ways to heat and cool their homes.
The “Future of Gas” proceeding is the place to begin to plan for this transition and do it right.
Why is it so important for me to speak up?
While the Future of Gas process has been a good step forward, the gas industry and its allies –the players who favor out-of-control spending and high heating bills–have been loud voices in this process. While they make their presence known in the FOG proceedings, two of those players are pushing for big rate hikes: Nicor Gas ($221 million) and Peoples Gas (adjusted to $144 million). That’s why real people need to speak up in the FOG process–people who are sick and tired of high gas bills.
How do I make a comment?
Fill out this simple form—we only need a few sentences—telling us why you think it’s wise for Illinois to begin wise planning for the long-term transition to efficient, clean sources of heat.
It could be as simple as this:
As a member of CUB I believe strongly that Illinois needs to put safeguards in place to protect everyday consumers from wasteful gas utility spending and seriously plan for a managed and thoughtful transition so all families have access to clean, affordable heat.
Use CUB’s online form to make a comment for Illinois’ Future of Gas proceeding.
