Peoples Gas faces petition push as ICC weighs $144 million rate increase

More than 10,000 consumer comments were delivered to the Illinois Commerce Commission on Thursday, pressuring the regulator to reject or modify Peoples Gas' latest rate case. The petitions were hand-carried by environmental and consumer advocates from a downtown Chicago assembly to the ICC's public meeting room. The utility serves nearly 900,000 customers in the city and is currently seeking approval for a rate increase that could raise average household bills by $7 to $8 per month beginning in 2027.

Peoples Gas initially requested a $202 million rate hike in January but lowered the figure to $144 million in subsequent filings. Administrative law judges at the ICC submitted a proposed order earlier in October recommending a reduction to $66.2 million. Despite that judicial recommendation, advocates argue the cut is insufficient. They are calling for deeper reductions and a fundamental restructuring of the utility's program to retire aging lead pipes beneath Chicago's streets. The ICC is expected to issue a final order on the matter in November.

Levi Orgas, an associate with Illinois Public Interest Research Group, stated that the volume of public comments signals that the requested changes cannot wait. "Today, we renew our call to the Illinois Commerce Commission, made louder by thousands of Chicagoans, to end the pipe replacement program as we know it and to slash the rate hike," Orgas said. The group is pushing for a shift toward non-pipe alternatives and more targeted prioritization of pipes that pose the highest risk to residents.

Peoples Gas maintains that the spending is necessary to retire 1,000 miles of pipes as directed by the commission. David Schwartz, a spokesman for the utility, characterized the advocacy demonstration as a political move. "It's unfortunate that political groups continue trying to mislead Chicagoans," Schwartz said in a statement. He argued that activists are pushing residents toward an all-electric heating system that costs $75,000 per home to install. Schwartz claimed this switch would double or triple heating bills and result in less reliable service.

Orgas responded to the utility's framing by noting that electrification often proves cheaper over the long term. She also challenged the notion that residents have a choice in their heating fuel. "Gas isn't a choice. Gas was in your home when you moved in, or in your apartment when you moved in," Orgas said. "You didn't choose that either, and no one's being forced to electrify their homes."

Affordability concerns were a central theme for the groups participating in the delivery, including the Citizens Utility Board and AARP Illinois. Karen Tolentino, CUB Español's outreach coordinator, cited frequent conversations with customers struggling to pay heating bills. "The numbers show that the utilities' reckless spending on their pipeline program has sparked a heating affordability crisis here in the city," Tolentino said. State data indicates that nearly one in five Peoples Gas customers were at least 30 days behind on their bills as of September.

Al Hollenbeck, president of AARP Illinois, read testimonials from members to illustrate the financial strain on seniors. He quoted a member named Mary, who has arthritis and neuropathy and relies on Social Security as her sole income. Hollenbeck also read a comment from another member, Eunice, who noted that executives and shareholders appear to be doing well while residents struggle.

The demonstration coincided with the release of third-quarter earnings for Peoples Gas' parent company, WEC Energy Group. The report showed a 43.5% increase in profits for shareholders compared to the same period last year. Peoples Gas stated that its parent company's earnings were driven by warmer weather and large commercial customers in Wisconsin and had little to do with its Chicago operations.

Jack Darin, director of the Sierra Club's Illinois chapter, connected the earnings report to the political climate ahead of the November midterm elections. "As that date approaches, it seems like everyone is telling us their plans for making our lives more affordable," Darin said. "Everyone, that is, except for major fossil fuel corporations like Peoples Gas."