Senate passes bill Republicans say will increase Illinois energy fees by $80 million

[February 26, 2022]  By Greg Bisho

(The Center Square) – A measure advanced out of the Illinois Senate Friday could lead to higher energy prices.

State Sen. Michael Hastings, D-Frankfurt, passed Senate Bill 3866 along party lines. Among other things, it includes issues around fees on energy bills.

“It makes a technical change to the energy transition assistance charge, to enable full collection of this charge,” Hastings said.

State Sen. Darren Bailey, R-Xenia, said the measure is a follow up to sweeping alternative energy legislation he said was “hastily” enacted last summer, and the timing of Friday’s legislation is poor.

“The hyperinflation that we have taking place right now today, and the situation with [the Russia-Ukraine conflict] coming about, obviously going to increase energy costs, and we’re looking at approximately an $80 million fee increase on electricity bills,” Bailey said of the legislation.

Bailey was also critical of a planned transmission line in southern Illinois, the Grain Belt Express. He said the law to phase out coal power over the next two decades could mean Illinoisans pay more to “tap into” that line.

The company behind the Grain Belt Express says the project will benefit Illinois with jobs and regional grid stability. Manufacturers are on board.

Patrick Whitty, vice president of Invenergy, said they continue to hold public meetings aiming to get approval for the project. The 800-mile project from wind farms in Kansas has a 200-mile primary route and an alternative route proposed for Southern Illinois.

One of the biggest benefits, other than the construction jobs, is connecting several regional grids, Whitty said

Illinois Sen. Michael Hastings, D-Tinley Park

John O'Connor | AP

“It will also, by connecting those markets, create a reliability backbone for the Midwest U.S. that Illinois consumers will benefit from in terms of more affordable energy, more reliable energy, and access to more clean energy,” Whitty said.

Illinois Manufacturers’ Association’s Mark Denzler said manufacturers are on board with the plan.

“One of the most important things that manufacturers need is a stable, low cost and efficient source of energy,” Denzler said. “We are proud to support Grain Belt Express and Invenergy, which is an Illinois company.”

Invenergy said the project will generate $1.2 billion in economic benefit, 2,200 local jobs during construction and $33 million in new revenue for area communities.

A spokesperson for Invenergy said Friday that Senate Bill 3866 will have "no material impact on the Grain Belt Express project owned by Invenergy in Illinois."

Last summer’s energy bill that the legislature approved and the governor enacted allows such transmission lines to utilize the same types of approval process through the Illinois Commerce Commission that other utility projects go through, Whitty said.

There are still several steps to complete, including engaging with and compensating landowners for land acquisition with easements Whitty said will be minimal. He expects the application to the ICC to be filed sometime this summer. Construction isn’t expected before the end of 2023.