Utility Accountability Campaign – August 14th Action – Energy for Everyone

Larry Larry, July 24, 2024

350 Launches Utility Accountability Campaign

350.org and the 350 Network Council(15 largest 350 Chapters in the U.S.) have launched a Utility Accountability Campaign nationally with many local chapters including 350 Chicago participating to hold utilities, especially Investor Owned Utilities (IOU’s) accountable for their actions, including, 

  • High Utility Rates(Peoples Gas $300 million rate hike approved in 2023, ComEds $1.1 Billion proposed rate hike)
    • 27% of Ratepayers nationally are in debt to IOU’s
    • 20% of Chicago residents are in debt to Peoples Gas
  • Cost overruns for poorly managed utilities and infrastructure projects(Peoples Gas Pipeline replacement project).
    • Peoples Gas: Proposed $4 Million for every 10 miles of pipeline; Actual cost was $10 Million for every 4 miles
    • Peoples Gas is Under investigation by ICC for their business practices
  • Lobbying reform and corruption.
    • Informing the public about the Utility Affordability Act in the state legislature to reform IOU lobbying practices; prevents the IOU’s from charging ratepayers for their lobbying expenses.
  • Utilities blocking the transition to clean energy.
    • Building or proposing to build new methane gas plants
    • Still trying to maintain the aging fleet of Coal plants 

August 14th Action

Locally, 350 Chicago will be hosting an action/press conference on August 14th at 10:30 AM at the Peoples Gas Headquarters at  200 E. Randolph to highlight the above issues to the press. We will hear from individuals and families struggling with high utility rates and organizations holding IOU”s to account.

You can RSVP Here: Event Page

 

Background

350 Chicago, as a member of the 350 Network Council and 350US, is launching the Utility Accountability Campaign to advocate for lobbying reform in Illinois and support other initiatives to hold IOU’s accountable for their actions. IOU’s in Illinois corruptly charge ratepayers for their lobbying expenses. IOU’s as monopolies are guaranteed 8-10% profits by law and use those profits to lobby the state legislature, the Illinois Commerce Commission and other regulatory bodies.  They charge ratepayers to 

  • Pay for memberships in trade associations and for political referendums to drive lobbying power and rate increases.
  • Purchase insurance to protect shareholders from litigation or fines
  • Buy goodwill advertising to enhance the utilities public perception to benefit shareholders
  • Pay for lawyers and expert witnesses when the utility seeks rate hikes
  • Make Intervenor Compensation Fund (ICF) money nonrecoverable from ratepayers going forward in future rate cases. (Intervenors are groups or individuals who have to travel or pay people to testify in Springfield in opposition to rate hikes or other legislative or regulatory initiatives that would benefit IOU”s. This protects low-income, frontline communities from being steamrolled by deep pocketed IOU’s.)

Furthermore, the bill would require at least one public hearing when a utility requests a rate hike.

Connecticut, Colorado and Maine have passed similar legislation to regulate lobbying activities. If enacted, for an average year, ratepayers across Illinois could expect to save approximately $50-60 million dollars/year.