Is energy plan a job-killer?
SPRINGFIELD  Alton Steel on Thursday joined a coalition of businesses and organized labor opposing an energy proposal backed by Gov. J.B. Pritzker they say would bring the largest rate hike for consumers in Illinois history while exporting jobs to neighboring states. On June 17, Illinois lawmakers finished a two-day special session without reaching agreement on an energy bill that would phase out all carbon emissions from power plants over the next 30 years. Pritzker wants to phase out coal plants entirely by 2035 and natural gas-fired plants by 2045 by gradually lowering caps on allowable emissions. On Thursday, members of a coalition opposing the proposed legislation said an analysis of it indicates the plan will cost Illinois families, businesses and organizations at least $700 million a year. This massive electric rate hike couldnt come at a worse time for Illinois businesses and families, who will be asked to pay significantly higher monthly electric bills, said Mark Denzler, President/CEO of the Illinois Manufacturers Association. At Alton Steel, it is estimated the proposal will cost the 250-member employee-owned facility at least a half a million dollars a year. It is important that any bill contemplated does not take away one of the biggest competitive advantages that Illinois manufacturers have, said Jeff Dorries, Chief Financial Officer of Alton Steel. This is important to protect the well-paying jobs with excellent benefits at Alton Steel, for our local community and Southern Illinois.  Chad Goldschmidt, Vice President of the Southwestern Illinois Building Trades Council, said the state would sacrifice energy grid reliability and affordability under the proposal. This issue is personal to me; I helped build Prairie State (power plan in Marissa), so I know how important it is not just to our power grid but also our state and regional economy, said Goldschmidt. If these plants are prematurely shuttered, Illinois will need to import power from other states, likely from less efficient coal plants. Working Illinois families should not be asked to pay more for less reliable power, he said. Since deregulation was enacted in 1997, Illinois families and businesses have saved more than $37 billion in energy costs, according to a 2013 economic analysis cited by the coalition. They said Illinois energy prices and reliable electric grid have been cited repeatedly by governors as reasons why businesses should stay in or more to Illinois. Manufacturers use one-third of all energy consumed in the United States so this will have a disproportionate impact on the industrial sector, Denzler said. Manufacturers have reduced emissions by 21 percent in the last decade while increasing economic output by 18 percent. After more than a year of disruption and uncertainty, they need help getting back on their feet, not new hurdles in the form of higher electric prices, he said. We ask the governor and lawmakers to rethink this proposal, which will end one of best competitive advantages in Illinois.  The energy proposal would have a detrimental impact on Illinois agricultural sector and result in higher energy costs for farmers, said Jeff Adkisson, Executive Vice President of the Grain & Feed Association of Illinois. Handling grain and manufacturing feed is a high volume, low margin commodity business which needs a reliable power supply, said Adkisson. This proposal will simply reduce the reliability of the power supply from Illinois and saddle the agricultural industry with a significant rate hike, resulting in lower prices paid to farmers and higher prices for animal food.  Rob Karr, President/CEO of the Illinois Retail Merchants Association, said state officials should explain to businesses and residents why the energy proposal is needed. Instead, they are being asked to cover the costs for a process completely devoid of transparency or accountability, said Karr. This proposal will only make it more difficult for retailers to get back on their feet after a year in which many were forced to close or limit operations.  Coalition members said the proposal would leave more than a thousand workers without a job as state-of-the-art energy plants are set to be shuttered decades before the end of their useful lives. The transition to cleaner energy must be done in a thoughtful way that doesnt pick winners and losers, said Rick Terven, Legislative and Political Director, Illinois Pipe Trades Association. Under this plan, there are a lot of losers  including businesses, consumers, and workers who rely on these power plants for their livelihoods, he said. At the same time, when these employees will be put out of a job, they will be asked to pay more to power their homes. Its a cruel double-whammy that can and should be avoided, said Terven.