Nuclear power, battery storage funding at center of energy policy debate
[September 20, 2025]
By Andrew Adams
After twice failing to pass an energy reform package this year,
lawmakers and renewable energy advocates are aiming to reach a deal in
time for a brief legislative session in October.
The bill, in its current form, would create a surcharge on electric
bills to incentivize battery storage developments, loosen state-level
nuclear regulations, institute new energy efficiency requirements and
more.
Many advocacy groups are hoping to get a major bill passed this year,
but one influential lawmaker is beginning to hedge as lawmakers’ veto
session approaches.
“This is still a work in progress,” Sen. Steve Stadelman, D-Caledonia,
said at a Thursday subject matter hearing on the bill. “Should the bills
come back before the Senate, we will have another subject matter on the
legislation or we could craft a different proposal in another bill.”
Stadelman, who chairs the Senate Energy and Public Utilities, noted at
the end of that hearing a final package could come “this fall or next
spring.” He also said the committee will hold another hearing in early
October.
House Bill 4116 contains the latest proposals, which are largely similar
to legislation considered at the end of May, only with an updated
timeline.
Nuclear power politics
In the latest round of negotiations, stakeholders have been largely
focusing on the electricity demand created by data centers. These
always-on, power-hungry facilities are a key aspect of Illinois’
economic development strategy, and the state has offered several data
center companies tax incentives to locate here.
The data center industry has advocated for the use of increased nuclear
energy to meet that demand.
Dan Diorio, head of state policy for the Data Center Coalition, pointed
to a recent deal between Constellation Energy Corporation, the owner of
Illinois’ nuclear power plants, and Meta, the parent company of
Facebook. Starting next year, Meta will purchase “renewable energy
attributes” from the nuclear facility in Clinton, providing the
financial incentive to keep the plant open for two decades after state
subsidies run out.
The industry is backing a proposal that would lift a state-level
moratorium on new nuclear power stations.
“Data center companies are adding nuclear power to their energy
portfolios because it’s carbon-free, scalable, safe and provides
reliable base load power,” Diorio said.
But environmental advocates are wary of lifting the moratorium. Sierra
Club Executive Director Jack Darin said he wanted the nuclear moratorium
to be part of broader talks about data center regulations in the spring
session.
“The other reason to maybe take a breath here is because of really
significant changes that are happening to the federal regulatory
oversight of the nuclear industry,” Darin said.
Earlier this year, President Donald Trump ordered sweeping changes at
the Nuclear Regulatory Commission with the aim of quadrupling nuclear
power capacity in the U.S. over the next 25 years.
The concept of lifting the moratorium has received bipartisan support,
including from Gov. JB Pritzker, although the exact details would have
to be ironed out in legislation.
Battery storage funding
The centerpiece of the proposed legislation is a new state funding
mechanism to incentivize energy storage projects.
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An industrial-scale battery storage facility at G&W Electric in
Bolingbrook, which was installed in 2024. (Capitol News Illinois
file photo)
“Batteries can serve as an arbitrage mechanism, storing surplus energy
during periods when electricity is ample and inexpensive and discharging
it during high-priced peak periods,” Sarah Moskowitz, head of the
consumer advocacy group Citizens Utility Board, said.
Moskowitz also said storage can help the grid maintain reliability by
replacing or delaying the need for more expensive or slow-to-deploy
energy generation.
“The sooner we invest in a solution, the sooner we can pull out of this
cycle of record-breaking electricity price increases,” Stephanie Burgos-Veras,
an organizer with the industry-backed Solar Powers Illinois campaign,
said in a statement. “The most expensive path forward is to not pass
anything in veto session.”
A May analysis from the Illinois Power Agency, which manages electricity
purchasing in the state, found that adding 6 gigawatts of battery
storage to the grid — the equivalent of several power plants worth of
batteries — would reduce costs to consumers by about $2.70 per month in
northern Illinois and about $7.50 in downstate Illinois.
The current proposal would incentivize battery storage in a similar way
to renewable energy projects — by adding a surcharge to utility customer
bills. This gives developers a financial guarantee that they can
leverage to obtain private financing for the bulk of project costs.
Consumer advocates like Moskowitz are strongly in favor of this
proposal. But some question cost savings claims.
“I think the IPA analysis assumptions were disingenuous to set up a
narrative that this will save ratepayers money,” Sen. Sue Rezin,
R-Morris, told Capitol News Illinois. “And that’s simply not true.”
Rezin advocated for cost caps to limit the amount of money charged to
ratepayers if IPA procurements cost more than expected.
Others, notably industrial businesses and manufacturers, don’t want any
surcharge on the bill. Instead, they propose requiring battery
developers to get state-backed loans from the Illinois Finance
Authority.
“This results in savings to them (battery storage developers) and
savings to Illinois ratepayers and, more importantly, does not put
another line item on the bill for Illinois consumers to pay for
something,” Phillip Golden, chairman of Illinois Industrial Energy
Consumers, said.
This proposal has sparked some dissent among Senate Democrats. Sen.
Willie Preston, D-Chicago, earlier this month announced he was backing a
proposal to use loans from the IFA as the finance vehicle for storage
projects.
“Instead of soaking ratepayers for even more money, as some propose, the
businesses that are going to reap the rewards should also take the
risk,” Preston said in an early September statement.
Proponents of using a ratepayer surcharge say the model’s use in
renewables is evidence that it can be successful. They also point to
studies prepared for industry groups which found that more battery
storage will save consumers money in the long run.
Capitol News Illinois is
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coverage to hundreds of news outlets statewide. It is funded primarily
by the Illinois Press Foundation and the Robert R. McCormick Foundation. |
