CEJA

Why Our Proposal Goes Beyond CEJA

The Climate and Equitable Jobs Act (CEJA) was a major step forward in addressing energy affordability in Illinois. It introduced income-based discount programs like the Percentage of Income Payment Plan (PIPP), which caps heating bills at 3% of a household’s monthly income for qualifying families. These programs are vital—but they don’t address the deeper structural imbalance in how utility rates are set.

🧩 CEJA’s Income-Based Discounts: Important but Limited

• Means-Tested Relief: CEJA’s programs require households to apply, verify income, and maintain eligibility. Many families fall through the cracks due to paperwork, lack of awareness, or fluctuating income.

• Complexity: These programs add layers of bureaucracy to a system that’s already difficult to navigate—especially for vulnerable households.

• Reactive, Not Structural: CEJA helps families cope with high bills, but it doesn’t change the underlying rate structure that causes those bills to spike in the first place.

✅ Our Proposal: A Simple, Structural Two-Tier System

We propose a basic two-tier pricing model that separates business and residential customers:

Tier Customer Type Pricing Logic Rationale

Tier 1

Residential

Flexible, seasonal rates

Reflects essential, variable use and protects vulnerable households

Tier 2

Commercial/Industrial

Higher base rate with demand surcharges

Reflects consistent, high-volume usage and infrastructure burden

This model is universal, transparent, and fair. It doesn’t require families to prove hardship—it simply acknowledges that they shouldn’t be penalized for surviving extreme weather in inefficient housing.

🚫 Why Time-of-Use Pricing Misses the Mark

Many utilities offer Time-of-Use (TOU) plans that charge more during peak hours. These plans assume that customers can shift their energy use to off-peak times—but that’s not realistic for:

• Families with young children

• Renters who can’t upgrade appliances

• Households facing unpredictable weather

“Asking families to avoid using electricity during peak hours is tone deaf. You can’t tell a child to stop needing heat or air conditioning.”

🗣️ What We’re Asking

We’re calling on the Illinois Commerce Commission, the Governor, and state legislators to:

• Review and reform the current rate structure

• Implement a two-tier system that reflects actual demand patterns

• Protect families from punitive pricing tied to survival

This is not a rejection of CEJA—it’s a necessary evolution. If our pricing is to be just, it must reflect who drives demand and who bears the cost.