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Watchdog warns of historic rate hikes for Peoples Gas customers
A consumer watchdog group is warning that People’s Gas customers in Chicago could face historic rate hikes as the utility’s pipeline replacement program balloons in cost.
CHICAGO - A consumer watchdog group is warning that People’s Gas customers in Chicago could face historic rate hikes as the utility’s pipeline replacement program balloons in cost.
The Citizens Utility Board (CUB), a nonprofit consumer advocate, has released a report saying the program’s costs have climbed to nearly $11 billion, far beyond the original $2 billion estimate, with only about 38% of the work completed since it began in 2007.
CUB’s report predicts that if state regulators don’t intervene, customers could be paying off these costs until the year 2100. The group says the unexpected price increase could lead to unprecedented utility rate hikes, putting a significant strain on household budgets.
In response, People’s Gas issued a statement denying CUB’s claims, arguing that the watchdog group is overstating the financial impact.
"At the same time CUB is claiming to care about affordability, they fully support measures that would force Chicagoans to go ‘all electric,’" the company’s statement read, adding that such measures "would double or triple heating bills."