Consumer watchdog group pushing back on Peoples Gas over rate increase
Peoples Gas is asking for a record-breaking $402 million rate hike, and now, a consumer watchdog group is pushing back and calling on regulators to rein in the rate increase.
CHICAGO - Peoples Gas is asking for a record-breaking $402 million rate hike, and now, a consumer watchdog group is pushing back and calling on regulators to rein in the rate increase.
They are also asking for Peoples Gas to better manage the money it gets from rate-payers.
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The Illinois Public Research Interest Group says the rate hike should not go forward because the utility has not fixed how it manages its pipe replacement program.
"We think it's a fair analysis to say, how many miles of this pipe are they removing, for the total cost of the program each year. And again if you look at what they plan to do versus what they actually do, uh they're falling behind they are over budget," said Abe Scarr, Illinois PIRG Education Fund Director.
The watchdog group says the utility is putting money ahead of safety, making record profits while neglecting at-risk pipes which need replacing.
Peoples Gas released the following statement in response to the watchdog group:
It is unfortunate to see Illinois PIRG continue their false and misleading antics around a safety program that is benefiting every Chicagoan. Our work to replace Chicago’s rapidly corroding iron pipes is on budget and on schedule. The data we reported this week to regulators confirms the program’s success and importance. We also shared this information with every newsroom in Chicago on Tuesday.
The rate filing we submitted last month is the first time in nine years we have asked to raise base rates. After nearly a decade of cutting costs and finding efficiencies, a rate filing became necessary to ensure the ongoing safety, reliability and environmental sustainability in Chicago’s system.
While our rate filing requests an increase of $11.83 for the typical residential customer, this does not mean customers’ bills will go up. With the cost of natural gas forecast to decline in 2023 and 2024, customers are expected to see little to no impact on their total bill in 2024 as compared to 2022.
We are fully aware that some Chicagoans, particularly those with lower incomes, are having a tough time paying all of their bills, which is why we recently made a $5 million donation to the Share the Warmth heating assistance program. This money will help customers with low incomes pay their heating bills. We are also working every day to connect our customers with heating assistance funding, payment plans and budget billing options.
Any customer concerned about their bills should contact us on the phone or online to discuss options.
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