The Illinois Commerce Commission (ICC) has once again stood firm against Peoples Gas, denying the majority of the utility's request for additional funding to cover its contentious pipeline replacement program. Thursday's rejection amounted to a severe cutback on the previously proposed $7.9 million increase, approving just $1.6 million for Peoples Gas, despite the utility's claims of necessary safety upgrades, as reported by the Chicago Sun-Times.
As Peoples Gas sounded the alarm over jeopardized energy system safety in Chicago, consumer advocates lauded the ICC's consistent defense of ratepayer interests. The Citizens Utility Board (CUB) praised the ICC for its regulatory diligence, previously criticizing the utility for rampant spending on the pipeline project, with costs skyrocketing from $2 billion to $11 billion since 2007. CUB's Executive Director Sarah Moskowitz commended the ICC for seeing through the, "smokescreen" presented by the utility, and preventing undue financial burden on Illinois consumers, according to a statement obtained by their blog.
The approved increase is expected to bump residential bills by an additional 15 cents per month, whereas Peoples Gas had hoped to add 60 cents per month with its full request. ICC Chairman Doug Scott, emphasizing the decision should not prevent necessary emergency work, implied that the utility should still be capable of maintaining a safe system within the confines of the limited approval, according to the Sun-Times.
Peoples Gas spokesman David Schwartz warned that the financial cutbacks could harm future endeavors to address the city's critical energy infrastructure needs, with the utility planning to file an appeal against the decision. In the wake of the ICC's stance, Schwartz remarked to the Sun-Times, "The commission’s staff — whose job it is to audit utilities and provide technical advice to the commission — confirmed that Peoples Gas emergency and safety work is necessary to comply with federal pipeline safety requirements and keep Chicago safe."
A tentative end to the wrangling over the pipeline project’s funding may not come until 2025, as the ICC continues its probe into Peoples Gas' System Modernization Program, set to overshadow next year's regulatory calendar. As Chicagoans navigate an affordability crisis, manifesting in a collective debt of over $109 million to Peoples Gas, the issue of equilibrium between public safety and financial prudence remains a complex one, illuminated by both sourced reports.
