Debate continues over surcharges on Illinois heating bills

[February 10, 2022]  By Kevin Bessler

(The Center Square) – Natural gas prices have been spiking in Illinois this winter, and lawmakers say surcharges from utilities are adding to the cost.

An infrastructure surcharge for Illinois utilities was the subject of a hearing Wednesday of the House Public Utilities Committee. Proposed legislation in both chambers would eliminate the Qualified Infrastructure Plant surcharge, which became law in 2013. It was designed to help improve utility infrastructure and replace dangerous pipes.

Pat Whiteside, senior vice president with Nicor Gas, said the improvements are necessary during times of need.

“These focused infrastructure investments allow our system to keep our region warm and safe throughout the coldest days,” Whiteside said. “Nicor Gas’s system was able to support our customers during the Polar Vortex of 2019, the single largest delivery of energy ever recorded on our system.”

But Abe Scarr, director of Illinois Public Interest Research Group, said infrastructure spending is out of control.

“You will not hear any evidence explaining why such massive spending at such a fast pace is needed to address any specific safety risk,” Scarr said.

While everyone agrees old pipes should be replaced, consumer advocates argue the utilities should do it in a responsible way that doesn’t cause hardship for their customers.

“Customers are struggling to keep their homes at unsafe temperatures, they are heating their homes in unsafe ways, and foregoing other critical expenses like food and medicine,” said state Rep. Joyce Mason, D-Gurnee, chief sponsor of House Bill 3941.

Currently with the surcharge in place, a company can begin collecting costs before having to justify the rate increase to regulators. The bill would phase out the surcharge by Jan. 1, 2022.