New Illinois bill charges customers for energy storage, promises lower rates

SPRINGFIELD, Ill. (WTVO) — Illinois lawmakers have passed a bill that will lift the state’s ban on new nuclear generation facilities and charge utility customers for new energy storage systems, with the intention of eventually lowering electricity costs.

Residents could see a new line item on their electric bill to fund energy storage projects, like large battery installations, under provisions included in

Senate Bill 25, also known as the Clean and Reliable Grid Affordability Act (CRGA).

“That line item will be immediately offset, because that’s the same date that the battery storage providers will start providing extra capacity, providing power to the grid,” bill sponsor Sen. Steve Stadelman (D-Rockford) said.

Opponents expressed concern that the bill removed the ability for local governments to control where such energy projects are installed, and does not include price caps to protect consumers.

“Lawmakers were sent to Springfield to deliver relief. Instead, they passed a bill that removes limits on how much utilities can raise rates, thus forcing customers to pay billions to weathly corporations for battery storage development. To avoid oversight, this bill also strips away local control by allowing massive energy storage projects to be built within 150 feet of people’s homes,” said Sen. Li Arellano Jr. (R-37th).

The Illinois Power Agency analyzed the bill and found that while the new proposals will increase customer utility bills in the short term, the increases should be entirely offset by 2029.

The bill will also require utility companies to create “virtual power plants,” coordinating rooftop solar, home-based batteries, bidirectional charging electric vehicles, and other distributed energy generation.

State officials advocated for new policies to avoid an unstable power grid.

“With the spike from data centers, with new manufacturing, we’re seeing rapid increases in demand. If we don’t meet the moment, we’re looking at blackouts,” Illinois Commerce Commission executive director Jonathan Feipel.

“Here’s the bottom line in my view: this package is about making energy more affordable for ratepayers in the years ahead. We’re getting more energy on the grid,” Stadelman said. “If we do nothing… the rates are going to continue to go up.”

The bill also lifts the state’s ban on new nuclear power plants. Illinois had previously lifted a ban on next-gen, smaller, modular nuclear reactors, but this bill allows for large-scale facilities.

The bill passed both houses and now heads to the governor’s desk to be signed into law.

“This legislation takes two routes toward affordability. First, it will accelerate clean energy projects with new grid-scale batteries and other clean energy technology to increase the available electricity supply. Second, it will require utility companies to help their consumers to lower their utility bills and access energy efficient resources. This bill will build upon the Climate and Equitable Jobs Act, positioning Illinois to keep growing our clean energy economy and creating good-paying jobs in communities across the state,” Gov. JB Pritzker said in a statement, celebrating the legislation’s passage.