On Thursday, the Illinois Commerce Commission (ICC) mitigated a proposed gas utility cost hike by Peoples Gas, limiting the financial burden on Chicago customers. The ICC also took significant action by halting a contentious pipeline replacement program to scrutinize excessive spending.
Peoples Gas had initially requested a record rate increase of $402 million—a jump that would have added nearly $12 to the average monthly residential bill. However, the ICC mitigated this by decreasing it by 25%, setting the new hike at around $301 million. The ICC also unanimously voted to cut the utility's pipe replacement budget for 2024 and opened a spending investigation. The expected impact on residential bills is under $10 a month according to Chicago Sun Times.
Despite the ICC's welcomed decision, this action raises questions concerning future energy infrastructure, not exclusively in Chicago but far beyond. Peoples Gas contended the rate hike was needed to "ensure ongoing safety, reliability, and environmental sustainability" and highlighted that this is the first such request in almost a decade. Yet, the rapid increase in the cost of Peoples Gas' pipeline replacement program calls for attention.
Initially estimated to cost $1.7 billion, the pipeline replacement program's expenses have multiplied, with final costs projected to surpass $11 billion by 2040. Critics argue the program has become "a cash cow" for Peoples Gas, as they charge customers for investments inconsistent with long-term environmental goals. Sarah Moskowitz, executive director of the Citizens Utility Board, voiced similar concerns and welcomed the ICC's action to pause the program and open an investigation as reported by Chicago Sun Times.
