Judge to rule on Peoples Gas' $144 million rate hike proposal

A judge on Monday was expected to weigh in on a proposal that could make Chicagoans' home gas bills more expensive.

Peoples Gas wants a $144 million rate hike. That would add $7 or $8 per month to most bills, according to consumer advocates.

This comes as U.S. households are projected to spend an average of more than $1,000 heating their homes this winter. That figure is up almost 9% from last year, according to the National Energy Assistance Directors Association.

More than three dozen Chicago City Council members and state legislators have urged the Illinois Commerce Commission to reject the proposal. One of them is Illinois state Sen. Graciela Guzmán (D-Chicago), who said she is worried her constituents will go cold this winter.

"I'm absolutely worried," Guzmán said. "Again, half of consumers are already struggling. What that'll mean is that the majority of them may not be able to complete payment plans, or even enter a payment plan. So I am worried."

The group of state and local lawmakers 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.

Peoples Gas says the hike is driven by a state order to replace more than 1,000 miles of old iron pipe below the streets of Chicago. But the Citizens Utility Board notes that Peoples Gas has posted record earnings in seven of the last nine years.