The investigation into an Illinois utility’s pipe replacement program is ongoing, following the rejection of a rate hike request.
The Illinois Commerce Commission has granted approval for a $1.6 million rate increase to cover emergency work, however, Peoples Gas had initially sought a much higher increase of nearly $8 million. The commissioners expressed their dissatisfaction with the company’s inability to provide sufficient justification for their rate hike requests.
ICC Commissioner Stacey Paradis emphasized the crucial role of transparency in comprehending the investments and initiatives required to proactively upgrade Illinois’ utility system.
Peoples Gas expressed their criticism of the ruling, stating that it puts the safety and reliability of Chicago’s energy system at risk.
After carefully reviewing Peoples’ rehearing filing, as well as the materials submitted by the utility, commission staff, and other parties during a five-month legal proceeding, the ICC has reached its decision.
According to Abe Scarr, the Illinois director of the Public Interest Research Group, Peoples Gas failed to provide a valid reason for another rate hike. He also highlighted that the recent proceeding exposed further issues with the Peoples Gas pipe replacement program. This reinforces the importance of the commission’s ongoing investigation.
According to Scarr, the management of the program is flawed, and it is not effectively addressing the risks associated with the aging iron pipes in the Peoples Gas system in a cost-efficient manner.
In December, the ICC reduced Ameren and ComEd’s rate increase requests by hundreds of millions of dollars. Scarr noticed a consistent pattern with the commission.
Scarr expressed his belief that the ICC had not been skeptical enough in the past and had failed to fulfill its mission of protecting consumers and the public. He stated, “I think it is a good one and I think for too many years the ICC was not skeptical enough and wasn’t fulfilling its mission to really look out for consumers and the public.”
Peoples Gas plans to challenge the ICC’s decision in court.
