Word to lawmakers: Slow down, consider impact of energy legislation

Illinois stands at a critical crossroads when it comes to our energy future. Businesses across the state are eager to see policies that support a reliable, affordable, and modern energy system — one that strengthens our economy and keeps Illinois competitive in the race for jobs and investment. Unfortunately, the proposed energy omnibus bill moving through Springfield threatens to do the opposite.

The Illinois Chamber of Commerce represents employers of every size and sector across the state, from small businesses to global corporations. We advocate for pro-growth, pro-business policies that support a competitive environment where businesses can thrive. And our message is simple: Illinois cannot afford an energy policy that drives up costs and puts economic growth on the back burner. Yet that is exactly what the current version of the omnibus energy legislation would do, while doing little to address the uncertainty of our energy supply as the state seeks to attract new businesses to Illinois.

Chief among our concerns is the proposed mandate to install 6 gigawatts of battery storage by 2035. While battery storage will play an important role in our energy future, the mandate as written is alarmingly expensive. Independent estimates suggest this provision alone could cost ratepayers between $7 billion and $9 billion. That’s not a hypothetical number — it’s a direct hit to the bottom line of Illinois businesses and consumers. The General Assembly needs to consider other funding mechanisms, perhaps through the Illinois Finance Authority as others have suggested, to soften the impact on those already hurting from high electricity prices.

Rising energy costs are a top concern for businesses in every corner of the state. Companies considering expansions, relocations or new investments are watching Illinois closely. If we become known as a high-cost state with unpredictable energy policy, we risk losing out on job creation and economic development to more business-friendly neighbors. At a time when Illinois is trying to attract new industry, this bill sends the wrong message.

The bill also calls for sweeping regulatory changes, including the creation of an integrated resource planning process under the Illinois Commerce Commission. While long-term planning is important, the framework laid out in this legislation lacks the necessary transparency and accountability. Without clear protections for consumers and businesses, this new process could become a vehicle for unchecked mandates and further cost increases.

Even more concerning is the lack of a full and transparent cost analysis of those additional provisions besides battery storage, which will ultimately increase the price tag of the current proposal. Lawmakers are being asked to vote on legislation with enormous implications for the economy without a clear understanding of how much it will cost or how those costs will be distributed. That’s not sound policymaking — that’s a gamble Illinois can’t afford.

It’s also important to recognize that the State of Illinois is in the very beginning stages of reviewing the adequacy of our existing energy resources. Portions of the state are in federally recognized capacity zones with constrained supply, and we’re seeing warning signs from grid operators about potential shortages. The last thing we should be doing is enacting sweeping energy mandates without a firm grip on our existing resource adequacy and the consequences for reliability and affordability.

The General Assembly made the right decision to delay action on this bill during the spring session. As we head toward the fall veto session, lawmakers have another opportunity to get this right. That means slowing down, engaging with the full spectrum of stakeholders, and crafting a policy that supports — not hinders — economic growth.

Illinois businesses want to be part of the state’s energy future. But we need a plan that reflects economic reality, encourages investment, and protects ratepayers. The current omnibus energy bill misses that mark. It’s time to go back to the drawing board.

• Lou Sandoval is the president & CEO of the Illinois Chamber of Commerce. The Chamber is an independent membership organization that fosters a pro-growth and pro-business climate for all Illinois businesses.