Illinois Electricity 102: State Agencies and the Future of the Grid
Who’s In Charge of Energy in Illinois?
Welcome to Part 2 of our Illinois energy series — where we’ll explore what agencies set the course for Illinois’ energy future, and why their decisions matter for affordability, reliability, and clean energy. In Illinois, we’re witnessing a transition: more people are adopting solar panels, demand is rising, and new policies are being proposed to modernize the grid. One such proposal, the Clean & Reliable Grid Affordability Act (CRGA), aims to make sure the grid is ready — clean, reliable, and affordable. Over this series, we’ll show how our energy system works, who the key players are, and how solar and smart policy can help Illinois power its future.
In Illinois Electricity 101 I introduced two important, but not so well-known, state agencies: the Illinois Commerce Commission (ICC) and the Illinois Power Agency (IPA).
The ICC oversees the regulation of electricity, gas, telecommunications, and other public utility services. The ICC is led by five governor-appointed individuals, called Commissioners. When you hear about utility rate hikes, new charges on your bill, or big projects being approved, it’s the ICC that makes those decisions move forward. When investor-owned utilities like Commonwealth Edison (ComEd) or Ameren Illinois want to raise your rates, or if they want to make large investments to the grid, they must file an application with the ICC and present their case. Then, consumer advocate groups and other nonprofits like Vote Solar can “intervene” (or participate) in a case, provide facts and advocate for an outcome we respectively would like to see the Commissioners support.
The IPA, on the other hand, only focuses on the state’s electric grid. The IPA facilitates the development of renewable energy (through various programs), and it also oversees the “default electric supply” for Illinoisans. If a customer does not choose an electric supplier to create their electricity, then they get automatically enrolled into the default supply that the IPA has sourced. This means the IPA’s decisions don’t just affect utilities; they shape what energy ends up powering Illinois homes and how affordable that is.
Both agencies hold the key to helping Illinois achieve its clean energy goals. Set by the 2021 Clean and Equitable Jobs Act (CEJA), Illinois will need to produce half of its electricity from renewable energy by 2040 and all its electricity from clean energy by 2050. Electricity from fossil fuel plants will also be phased out by 2045. Both the ICC and the IPA have their own roles to advance CEJA’s goals. The ICC makes sure utilities are making necessary upgrades to the distribution grid for electrification, such as rooftop solar, batteries, and heat pumps. The ICC also makes sure that utility customers are benefiting from the clean energy transition; they would review utility electric vehicle proposals (such as charging infrastructure), energy efficiency plans (for example how utilities are helping customers adopt efficient appliances), and direct the IPA to promote clean energy projects.
To promote renewable energy projects, the IPA creates and maintains its critical guiding document called “The Long-Term Renewable Resources Procurement Plan”, or Long-Term Plan. This plan is like Illinois’ clean energy roadmap, setting the rules, incentives, and priorities for clean energy deployment across the state. Right now, the Long-Term Plan lists out the parameters of two solar programs named Illinois Shines and Illinois Solar for All (IL-SFA). Each of these programs separates various sizes and types of solar projects into different categories (think small rooftop solar, large rooftop solar, community solar, and more). The Long-Term Plan also lists out how much of an incentive is available for each type of renewable project; these incentives are called Renewable Energy Credits, or RECs. The RECs are meant to lower the cost of constructing these solar and wind projects, and they are paid to the developers of these projects. Finally, the Long-Term Plan hosts equity provisions related to the workforce of eligible contractors and developers, carveouts for RECs directed to equity-specific projects, and how utility-scale renewable projects should be incentivized. The IPA updates the Long-Term Plan every two years, and the ICC must review, revise (if necessary), and approve the Plan.
As both agencies navigate Illinois’ energy transition, they face tough questions: how to prepare the grid for growing electrification, integrate more solar and storage, and keep costs under control. That’s where the Clean & Reliable Grid Affordability Act comes in. CRGA would give the ICC and IPA clearer guidance and stronger authority to plan for long-term grid reliability, invest in local clean energy, and prevent sudden cost spikes for consumers. It’s designed to make sure the clean energy transition is not only achievable, but also affordable and equitable for everyone. The bill builds on the work of the Illinois Commerce Commission (ICC) and Illinois Power Agency (IPA), giving them stronger direction and tools to plan ahead for grid modernization, renewable energy, and consumer protections.
The ICC and the IPA are very important; they have the power to shape how clean and reliable Illinois’ energy will be. Both agencies also must weigh the costs of grid upgrades and REC incentives versus what Illinoisans can afford. As a consumer, you likely noticed that your electric bills have gone up recently. As a consumer, you might notice your electric bills have gone up in the last few years, so naturally, learning about this process might leave you with a few questions. You might be wondering: Are these renewable projects coming online fast enough to respond to fossil fuel plant closures? Are the REC incentive prices correct? Is the grid ready for the clean energy future? Are vulnerable communities being left behind in this transition? Can Illinoisans afford our electricity in the future?
In the next part of our series, we’ll dive deeper into the Long-Term Plan — what’s working, what’s not, and how policies like the Clean & Reliable Grid Affordability Act could help Illinois chart a clean, reliable, and affordable path forward for everyone.