Winter is looming, and Chicago and many residents anxiously await the judgment of a proposed rate hike by a major utility company, Peoples Gas. It has been reported by the Chicago Sun-Times that this price surge could disproportionately affect low-income families, particularly in black and brown communities, who are already battling with their utility bills.
Peoples Gas has asked the Illinois Commerce Commission for a $402 million hike, which would increase customers' monthly bills by an average of $11.83 if given the go-ahead. One would suggest lowering the hike to $350 million; however, consumer groups like the Citizens Utility Board advise that this could further pressurize already financially burdened households.
With the proposed rate increase, more disconnection notices are being sent to Peoples Gas customers than in recent years. In September, the utility issued 57,120 disconnection notices, an increase from 37,988 a year ago. More than a fifth of Peoples Gas customers are reputedly over a month behind on their bills. In some areas, a study from the Illinois Public Interest Research Group (PIRG) shows nearly half of all Peoples Gas customers are being charged late fees.
An article by NBC Chicago revealed that Peoples Gas netted $208 million in profit last year, breaking its profit record for the sixth year in a row. It isn't the only utility company looking for a rate hike; Ameren Electric, ComEd, and Nicor Gas have also made similar requests.
Concerns have been raised about the transparency of utility companies' operations, specifically Peoples Gas. Their disconnection practices for customers who are behind on payments are under scrutiny. Despite protests and calls for the Illinois Commerce Commission to reject Peoples Gas's rate hike proposal, the company is insistent on the need for increased rates to update Chicago's aged infrastructure.
As the commission gets ready to vote on the rate hike, Chicago residents, like Hiola G. Alston are concerned. Alston, a retiree and a member of AARP Illinois, alongside others, submitted 15,000 petitions to the commission against the rate increase. The fear arises from a potential financial strain and the need to make arduos choices - such as having to rent out a room - just to afford utilities.
The President of Peoples Gas, Torrence Hinton, has encouraged customers who are having difficulties with bill payments to lean on various assistance programs, whether governmental or utility-stipulated. Hinton mentioned in NBC Chicago, "We are certainly sensitive to the fact that a lot of Chicagoans are struggling to pay their bills," citing that this would be the company's first rate request in nearly nine years.
Even with these assurances, there is little comfort for households already facing disconnections and looming debt. With scores of Chicago residents grappling with escalating utility costs and the risk of service termination, the Illinois Commerce Commission's decision to finally deeply impact lives, forcing many homeowners into making hard choices.
