Business Groups Say Energy Bill Hurts Manufacturing, Commerce
Manufacturers, like the Chrysler Assembly Plant in Belvidere, use as much of a third of electricity consumed nationwide. Illinois business groups
While Democrats in Springfield spent weeks attempting to bring together supporters like environmentalists and labor on energy legislation, it’s business groups that say manufacturers and employers will feel the brunt of rate hikes in the new bill.
The bill passed the Senate Monday over the objection of the Illinois Manufacturers’ Association and the Illinois Chamber of Commerce. Prior to passage Monday, the Chamber released an analysis claiming the bill will include large increases for business ratepayers and would call reliability of the state’s energy grid into question, especially if coal plants are taken offline.
Chamber President and CEO Todd Maisch told The Illinoize Monday the impact on business and manufacturing rates, which are higher than residential prices, will put Illinois business at a competitive disadvantage.
“This is yet another government disruption in the marketplace,” Maisch said. “We think that’s going to be detrimental in the long term to one of the few economic development advantages that we have, which is affordable energy.”
But Senate President Don Harmon dismissed those concerns, saying the rate hikes will keep the energy grid more reliable.
“I think, frankly, manufacturers are concerned about the overall cost every month to operate their facilities, but they should be terrified about a situation like Texas where suddenly the grid isn’t reliable and suddenly that low-cost power doesn’t get to the plant,” Harmon said Monday afternoon.
Mark Denzler, president & CEO of the Illinois Manufacturers' Association, disagrees with Harmon’s assessment.
“Manufacturers use one third of all energy in the United States, so this legislation has a disproportionate impact on the industrial sector. It will result in a significant rate increase while decreasing reliability,” he said. “Closing baseload generation at a set date without replacement energy is a huge gamble. We need an all of the above approach that encourages energy innovation.”
Meanwhile, in a tweet Monday responding to concerns about rate hikes, Jen Walling, the Executive Director of the Illinois Environmental Council, a major supporter of the legislation, said rate hikes are worth the cost..
“The consequences of climate change are far far more expensive to our state, to our local governments, and to our families, especially low income families than the bill under debate today,” she wrote. “I’d rather pay to address climate change with money than pay with people’s lives and health.”
Maisch says environmental supporters are giving the public, and lawmakers, a false choice.
“You don’t have to choose between the two options that [they] have put in front of you, because, in reality, there are a lot of different ways to move forward for our energy future,” he said.
Maisch was also critical of a nuclear bailout for Exelon, the parent company of scandal plagued Commonwealth Edison, which he said shouldn’t have been rushed through while ComEd’s role in a massive bribery scheme isn’t yet fully clear.
But, Sen. Michael Hastings (D-Frankfort), the Senate sponsor of the legislation, said the state needed to act to prevent closure of the Byron and Dresden nuclear plants.
“The cost of doing nothing, their rates would have gone through the roof,” Hastings said. “It would be detrimental as a whole. Doing something prevented that from happening.”
