Chicago officials to urge Illinois Commerce Commission to oppose Peoples Gas $144 million rate hike proposal
Chicago elected officials and other representatives from Illinois are pushing back on Peoples Gas' proposed $144 million rate hike.
A group of alderpersons, state representatives and state senators will release a letter Tuesday, which they said is signed by dozens of elected officials, calling on the Illinois Commerce Commission to oppose the proposed hike, reject the utility's request for a 10.1% profit rate, and continue to work to reform its Pipe Retirement Program.
The group says Peoples Gas has raised rates by nearly $500 million since 2011.
In July the utility submitted a new rate hike that slashed approximately $58 million from its original $202 million rate hike proposal, but watchdog groups said it was not enough.
Citizens Utility Board and Illinois Public Interest Research Group have both decried the proposals, saying it includes hidden bonuses for corporate executives, inflated profit margins and wasteful spending on the Pipe Retirement Program.
Peoples estimated the original rate hike would raise the average household's monthly bills by $10-$11, while the new proposal would only add $7-8 a month. But CUB and PIRG argue the hike puts too much of a burden on households, and there are viable alternative replacement plans that could save customers $2 billion.
In a statement, Peoples Gas wrote, "The Illinois Commerce Commission directed us to retire more than 1,000 miles of old iron pipe so Chicago's heating system remains safe and reliable. This complex, large-scale work requires substantial investment, and our rate request is to recover those costs. We fully understand concerns about affordability. Postponing essential infrastructure work, though, is not a solution. That would greatly increase safety risks and costs. Our focus is on operating a safe and reliable heating system, doing critical infrastructure work cost effectively, and helping customers make ends meet through energy-efficiency programs, budget-friendly billing plans and financial assistance."
