In fact, the economics of the project are based on consumer savings: the project makes money by sharing the savings that result from the price of market-rate natural gas exceeding the cost of our substitute natural gas. What’s more, the savings from this project will be greatest when consumers need it most: when natural gas prices spike and are at their highest, then we will provide the most savings.
As part of the project, we will establish a fund – a Consumer Protection Reserve Account of $1.5 billion, with an up-front infusion of $150 million – that will go toward protecting the consumer. The fund is drawn upon to bring the price of substitute natural gas down to the price of natural gas if needed.
In addition, half of all additional revenues from other products created through the gasification process will be used to replenish the consumer protection account.
Generating natural gas locally helps insulate Illinois consumers from the risk of supply disruption due to Gulf Coast hurricanes or international supply interruption.
The Chicago Clean Energy project is an all-around “win” for the consumer.
