Report: Gas bills could double within 15 years if Illinois regulators
don't intervene
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[November 01, 2024]
By Kevin Bessler | The Center Square
(The Center Square) – A new report says gas bills for many Illinoisans
could skyrocket unless state regulators intervene in a pipe replacement
program
Peoples Gas and its System Modernization Program has been under fire for
cost overruns and delays. The Illinois Commerce Commission paused most
spending on the program pending a state investigation.
The nonprofit Citizens Utility Board has released a report that says the
cost of Peoples Gas’ program has climbed to nearly $11 billion, far
beyond the original $2 billion estimate. Jim Chilsen, CUB director of
communications, said if the program isn’t overhauled, there will be
rounds of record-breaking rate hikes for 15 years.
“That would double the annual charges for the average customer from
about $1,200 to $2,400 by 2040,” said Chilsen.
Peoples customers would continue to incur charges associated with the
pipe-replacement program for another 75 years after the utility
currently estimates it will finish revamping its system of gas mains,
according to the report.
Abe Scarr, state director of the consumer watchdog Illinois Public
Interest Research Group, said there is no transparency with Peoples’
pipe replacement program.
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A natural gas stove. - David Mastio/The Center Square
“Peoples Gas will not even commit to ensuring that its billions of
dollars of spending going forward is cost effective, and that’s just
absurd,” said Scarr. “A utility should always be able to demonstrate
that the benefits of their investments are greater than the costs.”
In a statement to The Center Square, a Peoples Gas spokesman said CUB’s
claims are false, saying in part: “Natural gas heating remains the most
affordable way to stay safe and warm, by far. At the same time CUB is
claiming to care about affordability, they fully support measures that
would force Chicagoans to go 'all electric' – a move that would DOUBLE
or TRIPLE heating bills.”
The Illinois Commerce Commission expects to wrap up an investigation
into the program in January.
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