Electricity and gas bills for Chicago residents are getting a reprieve after a pair of crucial decisions by state regulators. On Thursday, the Illinois Commerce Commission (ICC) zipped shut Commonwealth Edison's (ComEd) hefty $1.47 billion rate increase request and nixed Peoples Gas' plea to restore $134 million for pipeline work.
ComEd's proposal, meant to usher in updates for a power grid poised to handle increased solar systems and electric vehicles, hit a wall after the ICC insisted on revisions to better reflect state clean energy objectives and cost efficiency. The utility firm, left reeling from the blow, claimed an average increase of $17 per month by 2027 for delivery charges, which now hang in limbo.
In a decisive vote, the ICC put a cap on ComEd's potential profits, a turnaround from the company's projected profit rate growth, aligning with Governor JB Pritzker's broader goals. Pritzker, speaking at an event referenced by FOX 32 Chicago, raised concerns about past rate hikes fattening utility investors at the expense of ratepayers.
"The problem is that a lot of the time over the past, many of the utilities seem to have put in plans, multibillion-dollar plans, that the ratepayers have to pay for them," Pritzker said, "that end up really in the pockets of the investors and owners of the utilities and not in the ground or elsewhere into actually improving the delivery of energy to people’s homes."
Shannon Breymaier, a spokesperson for ComEd, minced no words in expressing the company's stance. "However, based on comments made from the bench, we can say at this time that we are very disappointed with the outcome as described," Breymaier told the Chicago Tribune. Meanwhile, Peoples Gas, which did not get the go-ahead to retrieve funds for its pipeline program and warned of potential layoffs and safety risks, is likely to angle for a rehearing.
Consumer advocate groups issued a collective sigh of relief, applauding the pushback against energy giants and heralding the decisions as a win for consumers. Citizens Utility Board executive director Sarah Moskowitz echoed this sentiment, chastising Peoples Gas for its stern warnings over cut jobs and unattended safety hazards following the ICC's denial. "Using this opportunity to threaten to neglect public safety and lay off their workers is a completely cynical and disingenuous act," Moskowitz said in a statement obtained by the Chicago Tribune.
The fight over utility rate hikes and infrastructure funding is far from over as Chicago enters 2024, with utilities now under pressure to prove their improvements are necessary and aligned with the state's energy and environmental legislation.
