Hundreds of Low-Income Illinois Families Embrace Electricity

Chicago resident Jean Gay-Robinson was overcome with relief when utility company ComEd converted all the gas-based appliances in her home to electric ones, without her having to bear any costs. As a retiree living on a fixed income, Gay-Robinson envisioned several benefits in this shift: no more appliance purchases, lower energy bills, and the absence of gas-related safety hazards.

Gay-Robinson’s experience reflects a unique provision in Illinois’ 2021 clean-energy law. This provision allows electric utilities to partially fulfill their energy-conservation mandates by providing low-income households with appliances that run on electricity, thereby lowering their energy bills. Interestingly, this results in higher, not lower, electricity consumption.

While such policies are limited across the United States, they could be pivotal in continuing the shift towards decarbonizing buildings, particularly as federal incentives for home electrification are being phased out.

Electric appliances such as induction stoves, electric dryers, and heat pumps are generally more energy-efficient than their gas-based counterparts, according to Nick Montoni, a senior policy and markets director at the North Carolina Clean Energy Technology Center. He adds that as the proportion of renewable energy rises, the emissions associated with using these appliances will fall.

Switching to an electric cooktop also purifies indoor air, eliminating the hazardous pollutants produced by gas stoves.

However, the replacement of appliances involves considerable costs, and federal tax credits aimed at making electric heat pumps and water heaters more affordable are set to end in December. The Home Electrification and Appliance Rebates (HEAR) program, a state-administered initiative funded by the federal Inflation Reduction Act, is also in uncertain territory. The Trump administration froze the remaining funds earlier this year, and Illinois is still waiting for its share.

Nick Montoni believes that state-level policies encouraging utilities to bear the electrification costs could make a significant difference during this period of federal transition.

Illinois utilities pledge to go electric

Under Illinois law, ComEd must reduce its annual electricity usage by an amount equal to 2% of its yearly sales in the early 2020s. Another large electric utility, Ameren, will also be subjected to similar regulations in 2029, as per a recent law.

The 2021 Climate and Equitable Jobs Act stipulates that a portion of these mandatory energy savings – 5% from 2022, 10% from next year, and 15% post-2029 – could be fulfilled through electrification. It also sets a formula to calculate the energy savings accrued from switching from gas to electric-powered appliances.

Kari Ross from the Natural Resources Defense Council explains that a utility can claim energy savings by comparing its gas therms in kilowatt-hour equivalents and the kilowatt[-hours] added via the shift to electric appliances.

While such policies are rare, Michigan also implemented a similar law in 2023, allowing electric and gas utilities to account for electrification in their mandatory energy-waste reduction.

As per Montoni, incentivizing electric utilities to meet their efficiency mandates through electrification is a crucial step in transitioning away from fossil fuels. In northern Illinois, ComEd operates alongside two key gas utilities.

ComEd’s whole-home energy-efficient electrification program covers all the initial costs of electric appliances and heat pumps for households earning 80% or less of the median area income. Since its launch in 2022, the program has benefited over 700 low-income households. The utility also provides rebates for purchasing electric appliances, including geothermal heat pumps, to customers of all income levels.