UTILITY-COST-BENEFIT ANALYSIS

Illinois General Assembly - Full Text of SB3970

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SB3970 - 104th General Assembly

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3970

Introduced 2/6/2026, by Sen. Seth Lewis

SYNOPSIS AS INTRODUCED:

220 ILCS 5/8-106 new

Amends the Public Utilities Act. Provides that, prior to approving or
directing any decarbonization pathway, pilot program, infrastructure
investment, or regulatory mandate related to the natural gas distribution
system, the Commission shall conduct a comprehensive, independent
cost-benefit analysis that evaluates: (i) life-cycle greenhouse gas
emissions reductions; (ii) cumulative energy system costs, including any
stranded asset risks estimated at no less than $80,000,000,000 by 2050
under high-electrification scenarios; (iii) ratepayer bill impacts for all
customer classes, with a focus on low-income and non-migrating customers;
(iv) system reliability and safety under State standards; (v) equity
impacts, including cost shifts to vulnerable populations; (vi) workforce
and job impacts; and (vii) the extent to which competitive market
mechanisms, such as private investment, third-party financing, and
supplier competition, can achieve equivalent or superior outcomes at lower
costs. Provides that the Commission shall not approve a decarbonization
pathway, pilot program, infrastructure investment, or regulatory mandate
unless the pathway, program, investment, or mandate demonstrates net
benefits under the cost-benefit analysis without prioritizing an approach
where regulated solutions increase costs without proportional benefits.
Provides that the Commission shall use transparent, market-based data from
sources such as PJM Interconnection, LLC (PJM), Midcontinent Independent
System Operator, Inc. (MISO), and Chicago Citygate and coordinate with
applicable biennial long-term gas infrastructure plans.
LRB104 19038 AAS 32483 b

A BILL FOR

SB3970
LRB104 19038 AAS 32483 b
1

AN ACT concerning regulation.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Public Utilities Act is amended by changing
5
Section 8-106 as follows:

6

(220 ILCS 5/8-106 new)
7

Sec. 8-106.
Natural gas distribution; cost-benefit
8
analysis.

9

(a) Prior to approving or directing any decarbonization
10
pathway, pilot program, infrastructure investment, or
11
regulatory mandate related to the natural gas distribution
12
system, the Commission shall conduct a comprehensive,
13
independent cost-benefit analysis that evaluates:
14

(1) life-cycle greenhouse gas emissions reductions;
15

(2) cumulative energy system costs, including any
16

stranded asset risks estimated at no less than
17

$80,000,000,000 by 2050 under high-electrification
18

scenarios;
19

(3) ratepayer bill impacts for all customers, with a
20

focus on low-income and non-migrating customers;
21

(4) system reliability and safety under State
22

standards;
23

(5) equity impacts, including cost shifts to

SB3970
- 2 -
LRB104 19038 AAS 32483 b
1

vulnerable populations;
2

(6) workforce and job impacts; and
3

(7) the extent to which competitive market mechanisms,
4

such as private investment, third-party financing, and
5

supplier competition, can achieve equivalent or superior
6

outcomes at lower costs.
7

(b) The Commission shall not approve a decarbonization
8
pathway, pilot program, infrastructure investment, or
9
regulatory mandate unless the pathway, program, investment, or
10
mandate demonstrates net benefits under the cost-benefit
11
analysis without prioritizing an approach where regulated
12
solutions increase costs without proportional benefits. The
13
Commission shall use transparent, market-based data from
14
sources such as PJM Interconnection, LLC (PJM), Midcontinent
15
Independent System Operator, Inc. (MISO), and Chicago Citygate
16
and coordinate with applicable biennial long-term gas
17
infrastructure plans.

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