Chicago is considering whether households should pay more each month for infrastructure work that elected officials and consumer advocates say is too costly.
Dozens of elected officials in Illinois are now urging regulators to say no.
Here's what to know
According to CBS News Chicago, Chicago alderpersons and other Illinois lawmakers have formally asked the Illinois Commerce Commission not to approve Peoples Gas' proposed $144 million rate increase. They also don't want the ICC to grant the utility's requested 10.1% profit rate or keep moving ahead with reforms to the Pipe Retirement Program.
For customers, the revised filing would mean about $7 to $8 more per month on the average household bill, by Peoples Gas' own estimate. That came after the company cut roughly $58 million from its original $202 million request it submitted in July. Under that earlier proposal, the average monthly increase was estimated to be between $10 and $11.
CBS News Chicago reported that consumer watchdog groups have said that the plan includes "hidden" executive bonuses and overly high profit margins.
More background
Peoples Gas, meanwhile, says the work is necessary because regulators have already ordered the company to retire aging infrastructure.
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In a statement defending the proposal, Peoples Gas said, per CBS News Chicago, "The Illinois Commerce Commission directed us to retire more than 1,000 miles of old iron pipe so Chicago's heating system remains safe and reliable. This complex, large-scale work requires substantial investment, and our rate request is to recover those costs. We fully understand concerns about affordability."
Peoples Gas added, "Postponing essential infrastructure work, though, is not a solution. That would greatly increase safety risks and costs. Our focus is on operating a safe and reliable heating system, doing critical infrastructure work cost effectively, and helping customers make ends meet."
What's happening next?
CBS News Chicago also reported that August data shows that over 160,000 people are behind on payments to Peoples Gas.
"I'm absolutely worried. Again, half of consumers are already struggling. What that'll mean is that the majority of them may not be able to complete payment plans or even enter a payment plan. So I am worried," said state Sen. Graciela Guzman.
CBS News Chicago reported that the next step forward will happen on Oct. 5. An administrative law judge will look at the price hikes and tell the ICC what it should do next.
Where can I learn more?
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• NW Natural deceived lawmakers and residents in Oregon about the source of its "green" gas.
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