Peoples Gas customers in Chicago could see a notable increase in their gas bill next year - if a rate hike is approved by state regulators.
The utility company said Friday it filed a request for a rate increase with the Illinois Commerce Commission - its first rate hike sought since 2014, but also the largest in People's Gas history, consumer advocates assert.
The advocacy organization Illinois PIRG insists the $402 million hike would raise the average customer's bill by about $12 a month. However, People's Gas maintains customers' bills will largely stay flat, saying natural gas prices are forecast to decline in both 2023 and 2024. The utility company asserts the change is necessary because the current regulatory approach used to aid the state of Illinois in oversight of its utilities is set to expire at the end of year, according to a news release.
Illinois PIRG blames the proposal largely on what it called the "failing Peoples Gas pipe replacement program," saying the program has fallen short of its pipe replacement goals every quarter since it began filing quarterly reports in 2018. Since it's inception, the budget has ballooned from $2 billion to $11 billion, according to activists. The consumer advocacy group cited two outside experts who stated the program is "failing to reduce safety risks in proportion to the massive amount the utility is spending."
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People's Gas also informed the ICC it doesn't plan to file for an extension of the Qualified Infrastructure Plant fee, a charge that covers certain costs associated with replacing natural gas pipes and other work on utilities' gas delivery systems, according to the nonpartisan advocacy group the Citizens Utility Board.
Instead, the company says it "will return to the traditional ratemaking process to recover the costs of necessary infrastructure improvements."
While regulators consider the proposal, advocates want the company and its pipe replacement program to be held accountable.
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"... Rather than approving the largest gas utility rate hike in Illinois history, the Illinois Commerce Commission should take this opportunity to limit the rate increase and rein in the out-of-control utility spending driving up gas bills in Chicago," PIRG Director Abe Scarr said in a statement, in part.
If approved, the rate hike would take effect in 2024.
PIRG insists "the time has come to hold Peoples Gas and its failing pipe replacement program accountable. Rather than approving the largest gas utility rate hike in Illinois history, the Illinois Commerce Commission should take this opportunity to limit the rate increase and rein in the out-of-control utility spending driving up gas bills in Chicago.
Nicor Gas, which covers the majority of the Chicago suburbs except portions of Cook and Lake counties, filed a request for a rate hike with the ICC earlier this week. The increase, which the utility says would amount to an additional $9.28 a month, is necessary, according to Nicor, due to inflation and rising global impacts affecting operating and maintenance costs.
