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A new report issued by the Illinois Manufacturers’ Association (IMA), Chemical Industry Council of Illinois (CICI), International Union of Operating Engineers (IUOE) Local 150, and the Illinois Pipe Trades Association (IPTA) warns a government-mandated push toward full electrification in Illinois could impose more than $1 trillion in costs by 2050, driving up energy bills for businesses and consumers by more than 2,000 percent, threatening energy reliability and the state’s economic stability. The study, Analysis of Potential Pathways to a Clean Energy Future in Illinois, finds alternative
decarbonization pathways that continue to utilize the natural gas system can reduce emissions significantly at a fraction of the cost to Illinoisians. Affordable, reliable energy is critical to our state’s manufacturing sector, which depends on large amounts of energy to produce the goods consumers rely on every day, including life-saving medicines, nutritious food and other products that keep our economy running. Additionally, full electrification would threaten the jobs of thousands of skilled laborers, who are vital to maintaining the state’s diverse energy sector. The study models several potential energy futures for Illinois, including a 100% electrification scenario that would result in nearly $540 billion in new electric infrastructure investments and an additional $638 billion in incentives – paid by natural gas consumers – to subsidize full electrification. Under this scenario, energy costs for homes and businesses would rise by approximately 14% annually for the next 25 years. “Illinois needs an all-of-the-above approach with energy that embraces traditional, renewable and nuclear energy sources. Forcing Illinois residents and manufacturers into an all-electric
future would be extremely costly for businesses and consumers alike, with many already facing huge spikes in energy prices this summer,” said Mark Denzler, President and CEO of the Illinois Manufacturers’ Association. “We can achieve meaningful emissions reductions in a more cost-effective manner by embracing cleaner technologies and fully leveraging our existing natural gas infrastructure. We urge policymakers to pursue a more balanced approach that ensures Illinois has the energy capacity needed to support advanced manufacturing, quantum computing and other technologies vital to our economic future.”
“A government-mandated full electrification policy would be a disaster for working families. It would wipe out thousands of good-paying union jobs, destabilize an already overburdened electric grid, and send energy bills through the roof—projected to increase more than 2,000 percent for businesses and consumers,” said Jim Sweeney, President-Business Manager of the International Union of Operating Engineers (IUOE) Local 150. “There’s a smarter path forward. We can reduce emissions without gutting the energy systems that millions of Illinoisans rely on every day. Keeping natural gas in the mix isn’t just common sense—it’s essential to protecting union jobs, maintaining grid reliability, and keeping energy affordable for
working families.”
The report emphasizes that a government-mandated electrification policy would require costly subsidies to convince or coerce participation, particularly from customers who cannot afford the high upfront costs of electric retrofits. By contrast, alternative scenarios that incorporate moderate electrification, hybrid heating systems, energy efficiency and renewable natural gas (RNG) would cost significantly less—between $340 billion and $391 billion, or roughly one-third the cost of the full electrification. These more affordable pathways still achieve up to 60% emissions reductions while preserving customer choice and ensuring energy reliability. Importantly, these alternative pathways reduce the risk of stranded infrastructure costs for the more than 4.2 million Illinois consumers who currently rely on natural gas. Under full electrification, gas infrastructure costs would be absorbed by a shrinking customer base until the natural gas system is phased out around 2050, leaving behind significant financial and economic
liabilities.
“It is more apparent than ever that natural gas must continue to play a vital role in sustaining and growing the major industries that power Illinois’ economy,” said Bill Allison, Executive Director of the Illinois Pipe Trades Association. “A shift away from natural gas would be greatly detrimental to tens of thousands of workers in the natural gas sector and would impact thousands of jobs within industries that rely on cost effective and dependable base load power.” “The importance of natural gas to the chemical industry cannot be overstated,” said Mark Biel, Chief Executive Officer of the Chemical Industry Council of Illinois. “The livelihoods of over 46,000 industry employees and 231,200 contractors in Illinois depend on abundant,
affordable and reliable natural gas.” Manufacturers and organized labor urge Illinois policymakers to resist costly and inflexible mandates and instead adopt a pragmatic, technology-inclusive approach that protects consumers and businesses while ensuring continued progress toward a low-carbon energy future.
“Policy decisions must be grounded in economic reality as well as environmental ambition,” the report notes. “Pathways that retain the natural gas system, particularly with innovations like RNG, allow for a more affordable, resilient, and equitable transition.”
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