Latest news with #IllinoisCommerceCommission
Yahoo
15-05-2025
- Business
- Yahoo
Citizen groups challenge $134M Ameren Illinois rate increase
PEORIA, Ill. (WMBD) — Citizen advocacy groups, on Wednesday, argued that a proposed $134 million rate hike for natural gas use is beyond what is needed. The Citizens Utility Board and the Illinois Public Interest Research Group held a joint news conference, saying Ameren Illinois' request to the Illinois Commerce Commission asking to raise the gas prices is overly excessive, said Jim Chilsen, CUB's communications director. 'Consumer advocates argue Ameren's bid for $134 million rate hike is unjust, unreasonable, and it's at least triple what the utility could justify' he said. In a release, Ameren said that the price increase is a necessary step in order to ensure safety and meet federal guidelines, according to Brad Kloeppel, an company spokesman. Ameren files electric and gas rate hikes before Illinois Commerce Commission 'The investments we have proposed in our reliability plan will enable us to meet strict federal pipeline safety requirements, reduce leaks, and provide reliable and affordable natural gas to our residential and business customer,' he said. 'We evaluate all available methods to maintain compliance at the lowest possible cost based on operational feasibility and industry best practices.' The proposed hike would be the fourth rate increase since 2018. CUB says it will raise monthly bills by 12% to 13%. That comes to about $10 more a month, or more than $100 a year for the average person, Chilsen said. He argued that the ICC should reject at least two-thirds of the proposed rate hike. Eric DeBellis, general counsel for CUB, accused Ameren of using money from customers to pay for things that stockholders should pay for. 'Ameren's proposed increase is at least triple what the utility can justify under law. In this case, we and other parties have already exposed more than $85 million in excessive, unjustified charges, largely driven by Ameren's push for an excessive shareholder profit margin and questionable accounting practices,' he said. DeBellis said CUB and others are pushing for lawmakers to approve the Utility Transparency Act, which would work to stop companies from doing just that. Kloeppel says that there is a strategic process Ameren uses to keep gas rates affordable for their customers. 'Ameren Illinois takes a strategic approach to maintaining the natural gas system and keeping customer rates affordable. A significant amount of natural gas is purchased in the summer, when prices are typically lower, and stored in twelve underground storage fields for withdrawal during the colder winter months,' he said. 'Up to 24.2 billion cubic feet of natural gas are in reserve and available for distribution at lower prices.' Kloeppel added they understand a price increase can be difficult for some customers to pay, and said anyone who needs assistance can find programs on Ameren's website. The ICC will give their final decision on whether Ameren can raise the rates sometime in November. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
21-02-2025
- Business
- Yahoo
ICC allows Peoples Gas to resume work—but with limits to control costs
The Brief Peoples Gas can resume work on its gas main replacement program after the Illinois Commerce Commission (ICC) lifted a 2023 pause, but the company must now focus only on the oldest and most at-risk pipes. Consumer advocates warn of ongoing rate hikes, as the project's estimated cost has surged from $1.4 billion to nearly $13 billion, with Chicago residents bearing the financial burden. The ICC will appoint a monitor to ensure Peoples Gas follows the ruling, including exploring alternatives to full pipe replacements to prevent leaks. CHICAGO - The Illinois Commerce Commission ruled Thursday that Peoples Gas can resume work on its yearslong program to replace aging gas main lines beneath neighborhood streets. The program had been paused in 2023 following criticism over its rising costs. What we know Under the ruling, Peoples Gas must scale back the project and focus only on replacing the oldest and most at-risk pipes. "Chicagoans deserve a safe and reliability gas system," ICC Commissioner Stacy Paradis said. "Today's decision focuses the companies efforts to ensure the company remains safe. It's now on People's Gas to change its approach." The ruling follows years of opposition from consumer groups who have fought the nearly decade-long project. Originally estimated at $1.4 billion, the projected cost has now ballooned to nearly $13 billion, with Chicago residents footing the bill through higher gas rates. "We just had a record-breaking $300 million rate hike, and if the program had continued as planned, we'd see record hikes every few years," said Abe Scarr, director of the consumer watchdog group Illinois PIRG. What they're saying Scarr has long criticized the main replacement program as bloated and over budget. He said Thursday's ruling should provide some relief for ratepayers. "We're still going to see rate hikes—it's important for people to understand that," Scarr said. "There are still going to be increased costs, but hopefully, they're much more moderate." The program aims to replace old, rusted pipes with yellow polyethylene tubing. Meanwhile, a Peoples Gas spokesperson argued that the ruling could lead to higher costs and more disruptions. "The commission made clear it wants us to focus on replacing more than 1,000 miles of pipes by 2035," the spokesperson said. "This direction given by the Commission, compared to the prior approach, may necessitate additional cost and more construction sites disrupting streets across city neighborhoods." What's next The ICC announced that it will appoint a monitor to make sure Peoples Gas is following through on the ruling and even using methods other than replacement to make sure the pipes don't leak.
Yahoo
21-02-2025
- Business
- Yahoo
ICC lifts pause on multibillion-dollar Peoples Gas pipeline project, orders utility to focus on high-risk pipes
CHICAGO — The Illinois Commerce Commission has lifted a pause against Peoples Gas that will allow the utility company to go forward with its multibillion dollar plan to replace underground natural gas pipelines throughout Chicago. Advocates are calling Thursday's ruling by the Illinois Commerce Commission (ICC) a 'win,' saying the order will help curb potential rate increases on heating bills, but Peoples Gas claims the new order is the costliest option to restart their work on the project. Read more: Latest Chicago news and headlines 'We do believe this will curb spending and it creates some more checks on utility spending,' Sarah Moskowitz, Executive Director at Citizens Utility Board, said. The ICC is now ordering the utility company to prioritize replacing high-risk pipes in their pipeline program and the project will also be subject to yearly reviews. 'To be clear, the ICC's decision is not a green light for Peoples' Gas to return to business as usual. It is Peoples' and any utility's responsibility to safely maintain the infrastructure needed to run its system. However, these projects cannot come at unreasonable or unjustifiable costs to customers,' Acting ICC Chairman Doug Scott said Thursday. 'Our investigation into Peoples' SMP found that the utility's proposed program options did not adequately prioritize the retirement of its most risk-prone pipes. To remedy this, today's order refocuses Peoples' proactive pipe replacement program on the retirement of cast and ductile iron pipes.' Consumer advocates said they are pleased by Thursday's ruling. 'Chicagoans deserve a safe reliable gas system, today's decision focuses the companies' efforts to ensure the system running safe and is now on People's Gas to change its approach,' ICC Commissioner Stacey Paradis said. Work has been paused for over a year to allow a state investigation into the project and consumer advocates feared that the rising costs of the project would have a devastating impact on future heating bills for Chicagoans. 'At its current rate, it would cost us $12.8 billion, they've already spent $3 billion, that would have raised people's bills double in the next 15 years. So that wouldn't have been good,' Moskowitz said. According to Moskowitz, in some ZIP Codes, residents are falling behind on their utility bills. 'Consistently one in five customers have been behind on their bills. In some ZIP Codes it's more like 40 to 50% are behind,' Moskowitz said. But Peoples Gas said their new approach is the costliest approach to the work. LATEST CASES: Missing people in Chicagoland A company spokesperson told WGN-TV that the project could now cost just above $16 billion because of the complexities of construction in a city like Chicago. 'For more than a decade we worked to replace old, leaky pipes in a systematic way that improves the safety and reliability of Chicago's heating system. The Commission paused that work at the end of 2023, and has now lifted the pause. As we wait to receive the full Final Order and review it, the Commission made clear it wants us to focus on replacing more than 1,000 miles of pipes by 2035. This direction given by the Commission, compared to the prior approach, may necessitate additional cost and more construction sites disrupting streets across city neighborhoods,' a spokesperson for Peoples Gas said in a statement. The spokesperson added that delays and increasing project costs occurred under prior ownership. While the current ownership has set a realistic project budget and stuck to it. 'It costs money to replace these pipes but, in this case, there will be more oversight,' Moskowitz said. In their decision, the ICC said any failure to comply with their directives could result in civil penalties. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
CBS News
20-02-2025
- Business
- CBS News
Illinois state regulators rein in Peoples Gas pipeline replacement program
The Illinois Commerce Commission voted on Thursday to allow Peoples Gas to resume a controversial pipeline replacement program, but with some big changes aimed at streamlining the project and saving customers money. The ICC said the expansive project can't come at an unreasonable cost to customers, who have been upset about rising gas bills in recent years. Consumer advocates had said the nearly $13 billion proposal project – which was billions over budget and years behind schedule could have led to record-breaking rate hikes over the next 15 years if the ICC hadn't stepped in to force Peoples Gas to scale it back. Utility watchdogs said customers shouldn't expect a big change in their bills right away, but the ICC's decision should rein in future rate hikes at Peoples Gas. "Essentially, what we saw today is the regulators deciding to regulate, and that's what we wanted," said Sarah Moskowitz, executive director of the Citizens Utility Board, a non-profit utility watchdog that fights rate hikes. Last year, CUB released a report showing that if Peoples Gas was allowed to continue spending at its current rate, the pipe replacement program would cost an additional $12.8 billion to finish, doubling the amount customers pay for gas by the year 2040. Peoples Gas has said the pipeline replacement program is necessary because so many of their pipes are past their useful service life. There are currently more than 1,100 miles of dangerous, old, deteriorating natural gas pipes in Chicago that need to be replaced — some dating back as far as the 1800s — prompting Peoples Gas to spend billions of dollars on what is known as the "Safety Modernization Program" to replace them, and in return sending gas bills climbing. But in November 2023, due to delays, the project going way over budget, and concerns that the program was not properly prioritizing addressing safety risks, the ICC paused the program and ordered an investigation. On Thursday, the ICC ruled that the program can finally resume, but must refocus to specifically address the retirement of these aging pipes by the year 2035. "On the whole, I think it's pointed the program in a better direction, refocusing on the core safety risks that the program always should have been about, and should be about going forward," said Abe Scarr, director of the Illinois Public Interest Research Group, a nonprofit consumer advocacy group. In a statement, Peoples Gas said this new focus ordered by the ICC might actually increase costs for them, and result in "more construction sites disrupting streets across city neighborhoods."
CBS News
20-02-2025
- Business
- CBS News
Peoples Gas line replacement project could mean record-breaking rate hikes for 15 years
Peoples Gas customers could find out as soon as Thursday if their gas bills will go up even more, as the utility company wants state approval on a project that would replace all the gas lines around the city. This week, Chicagoans saw the coldest winter weather of the season so far, which was likely to have impacted consumers' gas bills. But so could the nearly $13 billion proposal for gas line replacement — which could have Chicagoans seeing record-breaking increases for the next 15 years. Peoples Gas customer Matt Thurn said his gas bill has skyrocketed, and he's not alone. "No one is getting an explanation, no," he said. Thurn said he is beyond annoyed. "Extremely frustrated, and we're not getting any answers from Peoples Gas," he said. Bills are more than doubling in some cases. One customer paid $140.03 to Peoples Gas this month, compared with $62.60 in February 2024. It was a similar story in December — with a bill for $60.77 in December 2023, and $118.69 in December 2024. Across the whole year, from January 2024 through February 2025, the last three months showed steep increase in the customer's gas bills. "More and more Chicagoans have been facing real affordability crises here when it comes to heating," said Sarah Moskowitz of the Citizens Utility Board, a nonprofit that fights rate hikes. Moskowitz said with bills already high, if the Illinois Commerce Commission approves a project that replaces Peoples Gas' entire system of underground gas mains in the city, the rates could be catastrophic. "We're just trying to kind of put the brakes on here," Moskowitz said. Beneath Chicago streets, there are nearly 2,000 miles of old pipes — some of which date back to the 19th century. Peoples Gas said the deteriorating natural gas pipes pose safety risks like gas leaks and explosions. The Peoples Gas Safety Modernization Program would replace the pipes. Last year, the Illinois Commerce Commission paused the project, and started an investigation to see if the investment is even needed. "The utility has failed to show how their method of blanket investment across the board is really benefiting the system safety and reliability," said Moskowitz. Peoples Gas sent CBS News Chicago a statement reading: "The Peoples Gas heating system is critical to Chicagoans, especially during bitter cold winters like we are experiencing right now. Safety experts and two independent judges determined our plan to update pipes from as far back as the 1800's is urgently needed and the least expensive approach. We would like the opportunity to get restarted on this work." Moskowitz said if the project must go on, Peoples Gas should replace only in certain areas. "The most prudent way to do that is to replace any of the pipes that need repair," she said, "not to just indiscriminately replace the whole system." Peoples Gas did get a $300 million rate hike approved in 2023. This was the largest rate hike in Illinois history. The current investigation paused that spending and the project. If the project is approved, it remains unclear when customers would start seeing their bills go up.
