Illinois utility watchdog group fights record rate hike plans
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ComEd and Peoples Gas are requesting record-setting rate increases from Illinois customers.
Why it matters: The Citizens Utility Board (CUB), the state's utility watchdog group, says that Peoples Gas and ComEd are trying to extend record profits at the expense of ratepayers.
- If the rate hikes are approved, CUB says Chicago customers could be paying about $18 more a month.
Yes, but: Peoples Gas and ComEd dispute those numbers, saying some customers may not see increases at all.
Catch up fast: Earlier this year, both companies requested rate increases from the Illinois Commerce Commission (ICC), which regulates utilities.
- Peoples Gas wants a $402 million increase; ComEd seeks $1.5 billion.
The latest: CUB representatives filed testimony in May recommending a $63 million reduction to Peoples Gas' proposal that, added to a $49 million cut pushed by the Illinois Attorney General's Office, would trim the hike by $112 million.
- CUB also petitioned the ICC to reduce ComEd's rate hike proposal by 60%.
What they're saying: "This rate hike is unjust and unreasonable, and we urge state regulators to hold the utility accountable," CUB executive director David Kolata said in a statement.
- "The writing is on the wall: As climate change worsens and our bills get higher, we can't afford to continue bailing out Peoples Gas and an outdated and expensive fossil fuel system."
Yes, but: Both utility companies say the increases are needed for upgrades and are in line with other states' increases.
- ComEd officials say they'll use the money to modernize the grid for electric vehicles and renewable energy.
- "Our proposed investments provide meaningful benefits to our customers and communities and support the goals of the state's Climate and Equitable Jobs Act," a spokesperson for ComEd tells Axios.
The intrigue: CUB representatives allege that Peoples Gas has mismanaged its pipeline replacement project and that past rate hikes to pay for it were more expensive for consumers than the company had forecast in 2014.
- They note that Peoples Gas users in Illinois are paying about $50 in fees and fixed charges on top of any gas used.
The other side: Peoples Gas spokesperson David Schwartz denied the claims.
- "Our construction crews have made strong, steady progress to upgrade the rapidly corroding pipes in Chicago's delivery system, which dates back to the 1800s," Schwartz tells Axios.
What's next: The ICC will rule on the rate hikes by December.