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Peoples Gas files motions to increase new rate hike

By Fox 32 News
Published  December 1, 2023 4:53pm CST
Chicago
FOX 32 Chicago

Peoples Gas seeks additional rate hike to pay for pipe replacement program

Peoples Gas filed an emergency motion Friday asking for funding to be restored to their pipe replacement program. The utility group says the funding is vital for safety and keeping workers employed.

CHICAGO - Peoples Gas filed an emergency motion Friday to state utility regulators asking them to restore millions of dollars in funding.

Last month, the Illinois Commerce Commission cut $265 million from the utility's budget and put a pause on its ongoing system modernization program, pending an investigation into its efficacy.

Peoples Gas says without the funding, there would be critical safety risks like leaking pipe segments and unfinished construction projects.

Unions involved with the ongoing improvements say the work is vital, and its members face layoffs if the funding is pulled.

"What they've done is stopped, not only a modernization program that is badly needed for aging pipes in the city where 90% of residents get heat in their homes from natural gas, but they've also squashed the funding for emergency repairs and other maintenance," said Ed Maher, of International Union of Operating Engineers Local 150.

Consumer watchdog groups strongly disagree with that assessment, saying the modernization program isn't increasing safety. It's causing customers' bills to jump by almost $12 per month, all the while Peoples' Gas is raking in record profits.