Chicago utility pushes back against state oversight, asks for further rate increase
By ANDREW ADAMS
Capitol News Illinois
aadams@capitolnewsillinois.com
CHICAGO – Chicago utility Peoples Gas is requesting a multimillion-dollar bump to its already record-high rate increase approved by regulators last month.
In November, the Illinois Commerce Commission forced a yearlong pause on the company’s controversial pipeline replacement program while it investigates whether the program adequately prioritizes replacing high-risk natural gas pipes throughout Chicago, where the utility serves about 875,000 customers.
The company alleged in a filing with the ICC last week that a “misunderstanding” in last month’s ruling will prevent the company from conducting emergency repairs and other “critical” work.
Consumer and environmental advocates have pushed back strongly against the request, saying that it is an attempt to overturn the ICC’s decision without going through the proper appeals process.
The company is now seeking “expedited clarification” on what work it is allowed to continue doing and what work must be stopped. Peoples Gas claims that in pausing around $265 million of work spread over several years, the ICC stopped the company from conducting critical infrastructure work that is beyond the scope of the program that is under investigation.
Peoples Gas is now seeking an additional $9.1 million in annual revenue on top of the $303 million increase that regulators approved in November.
Last month’s ICC decision, which came in the form of a “final order,” cut Peoples Gas’ initial rate increase request by 25 percent. That, along with the decision to investigate the company’s pipe replacement strategy, drew praise from consumer and environmental advocates.
Read more: Advocates hail regulatory ‘earthquake’ as state slashes requested gas rate increases
But the decision to pause some infrastructure spending while the state investigates the company’s practices was met with strong pushback from both the company and the unions that represent its workers. They cite both the possible economic and safety impact of the decision.
In a statement, Peoples Gas said that “several hundred jobs will likely be lost” because of the ICC’s actions.
Ed Maher, a spokesperson for the International Union of Operating Engineers Local 150, said the decision could affect up to 1,000 workers, including 200 members of his union.
“It leaves an entire workforce without a way to feed their families for 12 months,” he said.
Maher also said the ICC “overstepped any kind of precedent” and the paused work could create safety risks.
“The commissioners are playing politics with peoples’ jobs, peoples’ heat and peoples’ safety,” Maher said.
AFL-CIO President Tim Drea wrote a letter to the ICC commissioners on Monday in which he called their decision to pause the pipeline replacement program “troubling.”
Consumer advocates, meanwhile, have pushed back against some of these claims.
Sarah Moskowitz, the head of the Citizens Utilities Board, called Peoples Gas’ request “irresponsible.”
“It is outrageous for Peoples Gas, which has been rolling in six straight years of record profits and just received a record rate hike, to claim that it suddenly doesn’t have the resources to conduct repairs to its system and pay its workers,” she said in a statement.
CUB filed a formal response to Peoples Gas’ request on Wednesday, along with several other entities that were involved in the case leading up to last month’s decision. This includes groups like AARP Illinois and the Illinois Attorney General.
In a response filing to Peoples Gas’ motion, the staff of the ICC criticized the utility on procedural issues as well as on its claims that it can’t perform critical repairs without the additional rate hike.
“Not only is the company’s interpretation of the final order incorrect, the company also fails to acknowledge that it is, in fact, obligated pursuant to statute to ensure both public safety and reliability,” ICC staff wrote Wednesday.
Another filing, submitted on behalf of several other advocacy groups, criticized Peoples Gas for withholding the evidence the company is now citing when it went through the formal rate case proceeding.
The groups, which include the Environmental Law and Policy Center and Illinois PIRG, further argue that last month’s order does not prevent the utility from conducting safety-related work and that the company’s motion is an “unprecedented attempt to coerce” the ICC into modifying its decision.
Abe Scarr, head of Illinois PIRG and a longtime critic of Peoples Gas’ pipeline replacement program, echoed other advocates’ critiques and called ICC’s recent decisions a “rude awakening for the utilities.”
Last month, the ICC issued decisions in four gas rate cases, cutting each utility’s requests by 25 to 50 percent.
“There has clearly been a major shift in how the Illinois Commerce Commission operates,” Scarr said. “You can tell in all of the rate cases.”
In addition to potentially responding to Peoples Gas’ latest motion, the ICC is expected to issue a decision in two ongoing electric rate cases next week. Those cases have the potential to increase bills for Ameren Illinois and Commonwealth Edison customers by hundreds of dollars per year over the next four years.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to hundreds of print and broadcast outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation, along with major contributions from the Illinois Broadcasters Foundation and Southern Illinois Editorial Association.
Illinois News
Classifieds
City of Kankakee Unanimously Approves Agreement with Kankakee Riverfront Society
Spread the loveThe Kankakee Riverfront Society (KRS), the not-for-profit organization spearheading The Currents of Kankakee and the transformation of the downtown Kankakee riverfront, received a unanimous vote of confidence from the City of Kankakee at their City Council meeting on March 7. Leaders from KRS, the City of Kankakee, and the Kankakee Valley Park District…
Manteno Trivia: March 17
Spread the loveBy Melanie Holmes When it comes to entertainment in Manteno, activities have come and gone. When a huge black grain elevator was still on Main Street, movies were projected onto the outside of it. From theaters (or nickelodeons) to dance halls, pool halls, and teen centers, activities to enrich the lives of the…
Joyce Measure Supports Police, First Responders
Spread the loveState Senator Patrick Joyce’s measure to support first responders via a tax check-off passed the Illinois Senate recently. “First responders put their lives on the line for our community, and we should have an easier option to give back,” Joyce said. House Bill 4161 aims to increase donations to the 100 Club of…
Local UIS Student Earns Leadership Role at Government Simulation
Spread the loveUniversity of Illinois-Springfield students earned awards and were elected to leadership roles during the Model Illinois Government (MIG) simulation held March 3-6, at the Wyndham Springfield City Centre. Participating this year was Cedric Birgans of Beecher, who was elected minority whip in the House and one-of-five students to hold a legislative position. The…
Area Catholics Pray Stations of the Cross for Lent
Spread the loveBy Melanie Holmes Easter this year falls on Sunday, April 17. For Catholics, the period leading up to Easter is called Lent, beginning with Ash Wednesday, it runs for 40 days and nights (excluding Sundays). In the spirit of reflection, times to pray the Stations of the Cross are added during Lent. At…
February Crete Area Chamber Meeting Updates
Spread the loveAt the February 9 Crete Area Chamber of Commerce meeting, 10 members were present, including three attending via Zoom. One of the first discussions concerned membership renewal, with members urged to encourage other Chamber members to renew, as renewals were coming in slowly. The new Chamber slate of officers elected were Judy Petrungaro…
‘Laugh for a Cause’ to Benefit Harbor House
Spread the loveHarbor House presents the comedy legends of The Second City, Chicago’s renowned sketch and improv comedy theater, in Laugh for a Cause on Saturday, April 2, at 7 p.m., at the Knights of Columbus, 187 S. Indiana Avenue, Kankakee. The program is appropriate for ages 17 and older. Tickets for Laugh for a…
College News
Spread the loveThe following area students are ranked among the top two percent of students in their college at Iowa State University in Ames. Congratulations to freshmen Emma Heaney – College of Agriculture and Life Sciences, and Morgan Meaney – College of Engineering. Both students are from Manteno. Spread the love
Monee Police Blotter: March 2 – 6
Spread the loveMarch 2, at 2:02 a.m., a routine traffic stop ended with an officer being attacked and a handgun being confiscated. When officers initiated a traffic stop for driving with no lights, the two occupants stopped the vehicle and then began walking away, ignoring officers request to stop. Finally, officers stopped the male and…
Register for Springfest 5K Run, 2-Mile Walk
Spread the loveRegister now for Manteno’s Springfest 5K Run/2-Mile Walk, on Saturday, April 23, at 9 a.m. The event, organized by the Kankakee Running Club and hosted by Manteno American Legion, will benefit the Legion and its veterans. The run begins at the Manteno American Legion, travels down Walnut to Legacy Park, then back to…
Peotone Library News
Spread the loveResidents may register for events on the website calendar or give the library a call at 708-258-3436. Keep checking the FB page, Instagram, and online calendar for more programs and updates. Youth Services March 17: Middle School Book Talk, online, Thursday, at 5 p.m. March 22: Bookworm Buddies StoryTime, Tuesday, at 10:30 a.m.,…
Letter to Ed.: Nagel
Spread the loveDear Editor: Tuesday, March 29, is Vietnam War Veterans Day – a day to recognize veterans who served in the U.S. military during the Vietnam War. The day became a national holiday in 2017. This day commemorates those who were on active duty between November 1, 1955, to May 15, 1975, in all…
Peotone Police Blotter: March 4 – 9
Spread the loveGabriel Morton, 45, of Chicago, was arrested on March 4, at 10:34 p.m., for DUI, breath alcohol count over 0.08 percent, and a traffic sign violation. Morton was released on bond, pending a court appearance. Matthew Santefort, 34, of Cedar Lake, IN, was arrested on March 5, at 2:22 p.m., for aggravated traffic,…
Letter to Ed.: Turay
Spread the loveDear Editor: Mean tweets and a less than polite attitude, that was the so called “Orange Man” Donald Trump, the 45th president of the United States. When you go fill up your car, pay your utility bills, buy groceries, buy clothes, buy household products, try to get parts for your car, or get…