Illinois lawmakers approve phase-out of gas fixed charges by 2035

Illinois lawmakers have introduced House Bill 3650, a significant piece of legislation aimed at transforming the state's energy landscape. Introduced on March 13, 2025, the bill seeks to phase out fixed charges for gas utilities and promote equitable access to clean energy technologies for residents and businesses.

At the heart of House Bill 3650 is a mandate that, starting January 1, 2035, public utilities providing gas service will no longer be allowed to assess fixed charges as part of their rates. This change is designed to alleviate financial burdens on consumers, particularly those in lower-income brackets. Additionally, beginning January 1, 2030, utilities must limit fixed charges to no more than 50% of the average monthly fixed charges from 2019 to 2021 for each customer class. This provision aims to create a more equitable pricing structure for gas services.

The bill also establishes the Equitable Energy Upgrade Program, which recognizes that many Illinois residents and businesses face barriers to accessing renewable energy technologies due to financial constraints. The program will facilitate the installation of renewable energy generation systems, energy efficiency upgrades, and energy storage systems, thereby contributing to a cleaner energy economy and enhancing the reliability of the electricity grid.

House Bill 3650 has sparked notable discussions among lawmakers and stakeholders. Proponents argue that the bill is a crucial step toward addressing climate change and promoting energy equity, while opponents express concerns about the potential financial impact on utility companies and the broader implications for energy pricing in Illinois.

The economic implications of this legislation could be substantial. By reducing fixed charges and promoting clean energy access, the bill aims to lower energy costs for consumers and stimulate job growth in the renewable energy sector. Experts suggest that these changes could lead to increased investment in clean energy technologies, ultimately benefiting the environment and public health.

As House Bill 3650 moves through the legislative process, its potential to reshape Illinois' energy policies and promote a more sustainable future remains a focal point of debate. The bill's progress will be closely monitored, as its outcomes could set a precedent for energy legislation in other states.