On Tuesday, administrative law judges for the Illinois Commerce Commission issued a Proposed Order in the regulatory body’s investigation (Docket No. 24-0081) into Peoples Gas’ System Modernization Program (SMP), a comprehensive overhaul of Chicago’s underground gas pipes that has been engulfed in controversy since its inception. (Read a pdf of the statement here.)
The Proposed Order, the equivalent of a recommendation to regulators on how they should rule on the case, would entitle Peoples Gas to spend an additional $7.2 billion on pipe-replacement – a sum that would unleash a series of record-breaking rate hikes on Chicago families over the next 15 years, according to a recent report by the Citizens Utility Board (CUB) and Groundwork Data.
In response to the Proposed Order, Citizens Utility Board Executive Director Sarah Moskowitz made the following statement:
This recommendation would give Peoples Gas a license to inflict staggering rate hikes on more than 800,000 Chicago households, as our recent report demonstrated. We urge the full Illinois Commerce Commission to protect consumers already suffering from spiraling heating bills and flatly reject this Proposed Order.
It’s deeply troubling that, despite Peoples failing to show the data behind its secretive system for prioritizing pipe-replacement spending, the Proposed Order nonetheless would permit the utility to practice business as usual on a program with a glaring decade-long record of financial excess and gross inefficiency that has cost consumers a fortune.
We’re hopeful that the full Commission will continue to assess Peoples Gas’ cascading rate hike proposals with a critical eye. Business as usual is simply unaffordable.
