Episode Details

Electric Heat: A Hot Topic in Chicago

In cold winter months, many people have to rely on fossil gas to heat their homes and power cookstoves. Yet all-electric appliances, including heat pumps to heat homes, are quickly becoming a cheaper alternative over the long term, though they often entail higher upfront costs compared to gas appliances.

In Chicago, the switch from natural gas to electricity is moving forward, but it is also revealing unintended challenges for low-income residents that are applicable to the broader energy transition. In the historic city core, many older buildings lack weatherproofing and insulation against extreme winter cold. Climate and health impacts, and the high price of burning fossil fuels for heat, provide ample reasons to switch from fossil gas to electricity. But as high-income people are doing so, they leave some of the most vulnerable people behind. As a result, Chicago is now pioneering an effort to support lower-income residents making the transition to all-electric heating.

What are the Climate and Health Impacts of Gas Heating

Gas heating is powered by natural gas, which is mainly composed of methane, a potent greenhouse gas. From a climate perspective, methane’s ability to trap heat in the atmosphere is 84 times greater over a 20-year period than carbon dioxide, making it the second most important contributor to climate change. And, because it lasts for 10 to 15 years in the atmosphere, while CO2 lasts 100 years or more, reducing methane emissions will rid the atmosphere of a potent greenhouse gas much more quickly. One-third of human-caused methane emissions come from the energy sector, and a large portion of methane use comes from waste such as leaks and venting. From a health perspective, a byproduct of natural gas called nitrogen dioxide is known to reduce lung function, and cooking with natural gas stoves has been linked to childhood asthma. Natural gas’s climate impacts and more immediate respiratory impacts may pose a health risk in homes that can be reduced by a switch over to electric heating.

Why are People Flipping the Switch?

As the price of natural gas rises, electricity may become a cheaper option for many Americans. The current structure of utility companies contributes to the high costs that ratepayers are facing. One concept found in utilities is the rate base, which refers to the amount of money and resources a utility company uses to produce and deliver electricity, water, or gas services. Regulators decide whether or not the investments that companies make are considered “prudent” and these expenses are added up to form the rate base, upon which the utilities are allowed to earn a rate so they can profit. This structure means that the costs of large capital investments are paid for by an increase in a rider on ratepayers’ bills, passing the cost burden onto customers.

For electricity here in California, the threat of wildfires caused by powerlines and the high cost of building transmission means that ratepayers face high electricity rates, especially compared to gas. Meanwhile in Chicago, one main reason many residents are switching to electric heating is because of recent price hikes from the major gas utilities supplier. According