New Illinois legislation aims to eliminate $40 million in hidden fees on utility bills

An Illinois consumer watchdog group is pushing for new state legislation to prevent utility companies from charging customers tens of millions of dollars in hidden fees on their electric, water, and natural gas bills.

The nonprofit Citizens Utility Board said customer's bills are padded with everything from corporate to even legal expenses, and it needs to stop.

Utility customer Suzette Saskill said she was "absolutely stunned" at her recent $861 electric bill, up from $292 one month earlier.

"Honestly, I really thought it said $361, and it was actually $861," she said.

Her outrage mirrors many others who have posted about rising utility bills on the community-based social media platform Nextdoor. One user in Westmont wrote about their "shock" at their most recent gas bill, which was up $160 from the month before and $184 from two years ago.

Another person on Nextdoor said their bill skyrocketed by 68% over last year, even though their use was up just 19%.

So what's behind the rising utility rates? The Citizens Utility Board said it's something you can't see on your bill. The group said utilities are passing the costs on to customers for costs like advertising used to promote the company image, membership dues to trade groups pushing the utilities' agenda, insurance protecting shareholders, and lawyers and expert witnesses the utilities use to argue for rate hikes.

"A lot of utility customers have no idea that their water, gas, and electricity bills pay for far more than water, gas, and electricity," said Illinois state Rep. Theresa Mah (D-Chicago).

With this in mind, the Citizens Utility Board and other advocates are pushing for a new law that would stop utilities from being able to charge customers fees to cover the costs of goodwill advertising, insurance protection for shareholders, trade association dues, or legal or expert witness costs when seeking rate hikes. Supporters of the legislation said it could save Illinois customers about $40 million a year.

"Illinois can and must take a strong stand and lower utility costs. That's why I call on my colleagues in the General Assembly to join me in passing the Utility Transparency Act," Mah said.

The Citizens Utility Board said three other states – Connecticut, Colorado, and Maine – have already passed similar laws.