Energy rate hikes are on the way in Illinois if legislators don't act

I’m proud to represent the Chicago area's working families and small businesses, which is why I introduced legislation that will help keep energy costs down and safeguard our future by modernizing the state’s energy grid.

Senate Bill 3959 is a critical solution that looks out for consumers and helps build the economy of tomorrow. My bill would prevent crippling energy rate hikes — an estimated $30 per month on electricity bills — while creating thousands of jobs, and ensuring we have a reliable and resilient energy grid that meets the needs of existing and future businesses in Illinois.

The need for an approach to our future energy policy was made apparent in a newly released study, Cost and Benefit Analysis of Energy Storage Resource Deployment in Illinois, which highlights the importance of battery energy storage to reduce the probability of expected, and expensive, power outages.

The reality is that Illinois is at risk of experiencing energy shortages if efforts to add new capacity resources are not implemented soon. These shortages would harm consumers and jeopardize the economic growth that is critical to our communities. That’s simply unacceptable as families are already grappling with rising costs in other areas.

Therefore, immediate legislative action is crucial because building large-scale energy solutions requires time. Illinois residents are already experiencing the consequences of projected energy shortfalls, as the July 2024 PJM Interconnection capacity auction caused an 833% spike in energy prices.

This surge is expected to raise power bills by up to $30 per month for millions of Illinois households in the PJM Interconnection region, which includes most of northern Illinois. My proposed legislation would tackle this issue by protecting consumers from unpredictable rate increases and offering incentives to accelerate the development of solar, wind and storage projects, creating a more diverse and reliable energy grid.

Ratepayer protection

My bill offers more than ratepayer protection — it’s a major economic opportunity for Illinois. By modernizing our grid and investing in clean energy storage, Illinois can lead the nation in renewable energy, attracting businesses and creating tens of thousands of high-quality jobs in clean energy, construction and technology, revitalizing communities statewide.

Battery energy storage projects are expected to increase employment in Illinois by 32,417 individuals and 115,329 full-time equivalent years and support an increase of between $3.9 billion to $16.3 billion in value-added activity statewide. Most of those construction jobs would be union positions that come with good wages, job protections and benefits that lift up our families and local communities.

Illinois made major progress with the Climate and Equitable Jobs Act, known as CEJA, in 2021, but continued action is vital to meet clean energy goals and attract businesses. This bill's clean energy storage mandate ensures renewable energy can power the grid reliably, even when the sun isn’t shining or the wind isn’t blowing.

SB 3959 also addresses one of the most significant barriers to renewable energy development — interconnection. Right now, the process of connecting new energy systems like solar panels or community solar projects to the existing grid is inconsistent and often costly, leading to delays or even the cancellation of completed projects. This bill would make that process more predictable and transparent, reduce costs and allow more clean energy projects to come online faster.

In addition to its economic and reliability benefits, this bill also has important equity implications. By supporting the growth of clean energy, particularly in under-resourced communities, we can reduce the harmful effects of pollution that disproportionately impact low-income and minority neighborhoods.

Furthermore, the jobs created by this legislation will provide meaningful, well-paying career opportunities for Illinois residents from all backgrounds, fostering economic growth in every corner of our state.

SB 3959 is a critical piece of legislation for Illinois’ energy future and sends a clear message: Illinois is open for business. It will prevent massive energy rate hikes, protect families and businesses from unreliable power, and ensure we have the modern, resilient energy grid needed to attract investment and drive economic growth.

Similarly, it will help us meet our climate goals, reduce pollution and create tens of thousands of jobs in clean energy. Approximately 75% of voters support incentives to build a more reliable grid through storage, and energy cost savings are a priority for nearly 75% of voters. This bill is a win for Illinois consumers, a win for the economy and a win for the environment.

I urge my colleagues in the General Assembly to support this legislation and help secure a brighter, cleaner and more prosperous future for all Illinoisans.

State Sen. Bill Cunningham has represented the 18th District since 2013. He is the Illinois Senate president pro tempore and frequently serves as the Senate’s presiding officer.

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