Prairie State Wire

The Citizens Utility Board (CUB) of Illinois, the state's leading nonprofit utility watchdog, has voiced concerns over a proposed amendment to House Bill 3445, warning that it could lead to substantial rate hikes for Illinois utility customers. 

Introduced by State Senator Steve Stadelman (D-Rockford), the amendment has been interpreted as giving incumbent electric transmission owners a "right of first refusal" for new transmission line projects.

Jim Chilsen, spokesman for the Citizens Utility Board of Illinois, told the Prairie State Wire, "We have grave concerns that Ameren is trying to slip a rate-hike proposal through at the last minute. Amendment 4 to House Bill 3445 would give Ameren a monopoly over transmission projects, at potentially higher, more lucrative prices for the company. This proposal will likely raise costs and is bad for consumers.”

Echoing these concerns, the Electricity Transmission Competition Coalition (ETCC), has opposed the right-of-first-refusal (ROFR) provision, warning that it could significantly increase electricity rates for Illinois families and businesses by stifling competition in electricity transmission.

Paul Cicio, Chair of the ETCC, said the “ROFR bill is anticompetitive and crony capitalism at its worst." 

"The Ameren/ComEd bill locks in increased electricity prices for decades to come for consumers and exorbitant profits for utilities.” 

Cicio's concerns were reflected in a Crain’s Chicago Business article that reported critics, including clean-energy advocates, worry that these laws inflate project costs, which are then passed on to ratepayers in their electricity bills. Higher costs for necessary high-voltage connections might even impede renewable power development.

Highlighting the potential financial implications, the ETCC pointed out that with the Midcontinent Independent System Operator's (MISO) planned $30 billion expenditure on transmission projects, Illinois ratepayers could bear approximately $3.6 billion. 

The ETCC posits that competition in the electricity transmission sector could lead to substantial cost savings, estimating potential savings of $21 billion over a five-year period.

Both the ETCC and the CUB are urging Illinois legislators to reject the amendment to House Bill 3445, emphasizing the importance of transparency, cost control, and competition in the face of potential backroom deals.