Illinois clean energy transition plan announcement prompts measured critique from Ameren

Illinois Gov. JB Pritzker announced last week principles to guide a statewide transition toward clean energy — a move that brought some conservative praise, but also critique, from electric company Ameren Illinois. 

Those principles consist of eight foundations:

1. Strengthening utility company transparency and ethics requirements
2. Expanding consumer affordability protections
3. Phasing out dirty power and moving to renewable energy leadership
4. Establishing market-based solution in support of clean power and air
5. Electrifying and decarbonizing the transportation sector
6. Supporting those communities making the transition
7. Promoting equity in clean energy growth
8. Enhancing energy efficiency efforts

Taken together, the governor’s office concluded, these could contribute to increased accountability among the state’s utilities, spur clean energy jobs and reduce harmful emissions, all while keeping energy costs low. As part of this, the Pritzker administration intends to restart working groups centered on prioritizing consumers and the climate, on reaching meaningful, expansive energy reform. 

“With these principles as a starting point, we will ensure any legislation on energy includes robust consumer protections as we work to increase transparency and restore the public’s faith in this process,” Pritzker said. “I will be an advocate for ratepayers, so they know they will finally have a seat at the table. These principles represent guideposts for crafting a legislative proposal that puts consumers and climate first, and I look forward to working with our legislative partners, advocacy groups, and other concerned citizens to bring this effort home.” 

Renewable energy groups, including the Illinois Clean Jobs Coalition, the Solar Energy Industries Association, the Natural Resources Defense Council, and Invenergy support the proposal. 

“The Illinois Clean Jobs Coalition is pleased that Governor Pritzker has affirmed the urgency of passing bold climate legislation this fall that brings justice and investment to communities that have borne the worst of fossil fuel pollution,” Colleen Smith of the Illinois Clean Jobs Coalition said. “We look forward to working with the Governor on passing a bill that holds utilities accountable, ends automatic rate hikes, and creates thousands of clean energy jobs that help rebuild communities of color and lead a statewide economic recovery. We can do this together without raising electricity rates, hiking taxes, or giving Exelon or fossil fuels a bailout. Combating climate change can’t wait; building equity and economic recovery can’t wait.”

From the utility side of the issue, however, the response was more measured. While utility company Ameren Illinois welcomed the opportunity to discuss future energy policy and even agreed with some of the principles in general, it also criticized several as already existing in law and warned that the proposed plans would cost Downstate residential customers billions. Its customers, Ameren said, already pay for the current clean energy plan, and would be asked to saddle more.

“The state has a real opportunity to produce more solar energy and get more electric vehicles on the road,” Ameren Illinois said in a statement. “We support the implementation of stronger ethics requirements, which should also include energy stakeholders such as the renewable energy developers, the Citizens Utility Board, and any others who may benefit from energy legislation.”

It pointed to existing measures that require utilities to extensively document costs and grid improvement plans over a nine-month regulatory process, with room provided for other parties to challenge. It’s a fair process, Ameren said, coupled with rates that are lower than they were nine years ago and cost-saving performance-based ratemaking. 

However, in crunching the numbers, the company alleged that while Illinois has invested more than $1 billion of utility customer dollars into renewable projects, only 7-8 percent of that renewable energy is under contract statewide. Only 2 percent of energy supplied in Central and Southern Illinois is renewable. Given that the state has a goal of reaching 25 percent renewable reliance by 2025, the facts leave the state a long way off.

“We have worked hard to earn the trust of our Downstate customers and communities,” Ameren Illinois said. “We believe that consensus on clean energy policy is possible, but we need to take the time to do it right.  It should not be rushed, and the final product must recognize the regional differences in this state.  When it comes to clean energy policy, Illinois is not a “one size fits all” state.”