Homeowners Face Steep Electric Bill Increases

Illinois residents, homeowners, and small business owners are experiencing staggering increases in their electric bills this summer, with some customers seeing costs double or even triple compared to last year. While broader economic trends and peak seasonal usage play a role, many point to recent state-level energy policies as the primary driver behind this alarming surge.

Under Governor JB Pritzker’s administration, Illinois passed the Climate and Equitable Jobs Act (CEJA) in 2021. This legislation committed the state to reaching 100% carbon-free energy by 2045, a move intended to curb emissions and foster job growth in the renewable energy sector. CEJA accelerates the closure of coal and gas-fired plants while heavily subsidizing wind and solar energy. However, this rapid transition has created a supply-demand imbalance that is rippling across the state’s power grid.

As traditional energy sources are phased out, grid operators such as PJM and MISO—responsible for managing electricity across much of the Midwest—have been forced to raise capacity auction prices to ensure supply reliability. These capacity costs, which utilities pay to guarantee electricity availability during peak demand, are passed on directly to consumers.

For many Illinois families and businesses, the impact has been swift and severe. One business owner recently reported a $3,400 electric bill for a single month—nearly triple what they paid the same time last year. Another saw their monthly bill jump from $3,000 to $5,700 over a one-year period. Residents are also struggling to cope, with household electric bills rising significantly even as efforts to conserve energy remain in place.

State Representative Mike Coffey (R-Springfield) warns that these spikes are likely only the beginning if the state does not revise its approach. “I support clean energy, but current policies have driven costs up for residents and businesses in Illinois, and the majority party must take action to adopt policies that keep energy rates affordable,” Coffey said.

Coffey cites several key concerns: a reliance on energy mandates that prioritize wind and solar developments while sidelining more reliable sources like nuclear and natural gas; the continued shutdown of baseload coal and gas plants; and a moratorium on building new nuclear facilities. “The main reason we are seeing electric bills skyrocket is because of mandates that have been put in place to subsidize wind and solar energy projects while shutting down coal-fired and gas power plants and failing to repeal the moratorium on nuclear construction,” he added.

The economic consequences of this policy direction extend beyond monthly utility bills. A recent report released by the Illinois Manufacturers’ Association (IMA), Chemical Industry Council of Illinois (CICI), International Union of Operating Engineers (IUOE) Local 150, and the Illinois Pipe Trades Association (IPTA) paints a grim picture if Illinois pursues full electrification under current guidelines. The report estimates a staggering $1 trillion in cumulative costs by 2050, threatening both energy reliability and the broader economy.

“There is a smarter path forward in Illinois to produce cheap and efficient energy,” Coffey continued. “But we have to look at the reality of our current situation and the red flags that point to higher demand and less production. When you look at the big picture, Illinois does not have the power to supply AI data centers, residential homes, and businesses. The economic reality of mandating electrification in Illinois is sinking in, and it’s created a financial burden on everyone in our state.”

Illinois Manufacturers’ Association President and CEO Mark Denzler echoed Coffey’s concerns, advocating for a balanced and diversified energy strategy. “Illinois needs an all-of-the-above approach with energy that embraces traditional, renewable, and nuclear energy sources,” Denzler said. “Forcing Illinois residents and manufacturers into an all-electric future would be extremely costly for businesses and consumers alike, with many already facing huge spikes in energy prices this summer.”

Proponents of CEJA and similar climate initiatives argue the policies are essential to curbing emissions and promoting long-term sustainability. The law includes programs aimed at job training, clean energy investment, and equity in underserved communities. However, critics contend that these goals must be weighed against the economic strain they are placing on ratepayers.

With energy-intensive industries warning of slowed production, and small business owners contemplating relocation to states with more affordable energy, calls are growing louder for the state to reassess its strategy. Lawmakers like Coffey are urging a pragmatic shift—one that balances clean energy goals with the urgent need for affordability, reliability, and long-term grid stability.

As Illinois continues navigating this energy transition, the cost of progress is becoming more tangible for everyday families and small business owners. Without policy adjustments, many fear that the price of going green may come at too great a cost for those simply trying to keep the lights on.