[in person] Peoples Gas Public Forum
Illinois Commerce Commission
Utilities
750 W Roosevelt Rd, Chicago, Illinois 60608 Chicago, IL 60607 (Directions)
This is an in person assignment and will include an additional hour of pay.
This is a forum to hear public comments on Peoples Gas’ proposed rate hike 23-0069.
More context:
- WBEZ/Chicago Sun-Times: Peoples Gas seeks record $402 million rate hike next year
- Citizens Utility Board blog post
Check the source website for additional information
Reporting
Edited and summarized by the Chicago - IL Documenters Team
Live reporting by
Will Reynolds
President of Peoples Gas, Torrence Hinton shared during last week’s public forum the company’s overdue process of replacing old iron pipes throughout the city.
Will Reynolds
@willinois
Hi! I'm live tweeting the Illinois Commerce Commission public forum scheduled for 6pm on a rate increase proposed by Peoples Gas for @CHIdocumenters
#Chidocumenters
#Chidocumenters
05:58 PM Aug 1, 2023 CDT
There's a decent crowd at UIC but still a lot of empty space in this very large hall. The forum is over the largest rate increase ever proposed by Peoples Gas. https://t.co/t0ZIn08TAS
Several community groups are here, along with customer service tables from Peoples Gas. AARP is passing out flyers. https://t.co/lK6pPu6VeG
I'd guess there's about 80 people here as they get started at 6:12. The ICC spokesperson says they won't respond to any comments or answer questions during the initial comment section. https://t.co/Tuu21mLzp0
A Peoples Gas spokesperson talks about their history and presence in Chicago. Sometimes, children decorate and sign pipes installed in their neighborhood. https://t.co/lWFK5tfs5z
Their employees have donated over $10 million dollars and volunteer in their communities.
The president of Peoples Gas, Torrence Hinton, speaks. Says rates will be relatively flat over the next year. Energy efficiency and assistance staff are present. https://t.co/p16FgDbmjW
He says their iron pipes are nearing the end of their useful life. Last year, they removed a pipe from 1859. An example is in front of the speaker's podium. Pipe failure would mean lack of heat and potential safety risks.
Hinton says they're becoming more environmentally sustainable. New pipes will reduce leaks. Will prepare them for "renewable natural gas" and hydrogen.
Next, Peoples Gas speaker says they'll build a bright, sustainable future. Two key drivers of request. One is increased costs of running their business. Second, the way they fund some costs expires at the end of 2023. He uses jargon and doesn't explain that.
Current Peoples Gas rep gives a lot of details about bills that don't seem germane. Says, with current low natural gas rates, they expect the increase will be $12 per month. Makes no comment on future methane gas rates. https://t.co/3RDiNF0tGN
Study claims that over 80% of iron pipes are nearing the end of their useful life.
Rate increase will also maintain their downstate natural gas storage field.
Rate increase will also maintain their downstate natural gas storage field.
Public comments begin. Speakers are limited to 3 minutes each. First speaker is opposed. Shocked at the audacity of Peoples Gas to ask for a rate hike in spite of their profits. https://t.co/3fNo6AASsC
"The low income discount rate is completely inadequate...stop debilitating our most vulnerable neighbors." The audience applauds.
Next speaker is from the Utility Workers of America union. He works for Peoples Gas. When he started, he couldn't believe they were working on 100 year old pipes. Had pipes fall apart in his hands. "Natural gas is a clean burning fuel." Urges a budget that provides a fair wage.
A new speaker talks about the opportunities Peoples Gas has given to minority owned business, including design firms. https://t.co/uJARgs2U63
Next, Philippe Largent from IL AARP opposes the increase. Customers have seen their bills skyrocket in recent years. The customer charge is already too high and should not be increased. Higher fixed charges discourage conservation. https://t.co/muo5gkUCwx
The increase is at odds with state climate goals to cut natural gas. The 9.9% requested rate of return is too high, particularly compared to other companies.
Next speaker from Citizens Utility Board claims Peoples Gas has mismanaged money during eight successive years of record profits. They've sought excessive rates for shareholder profit. State needs to plan for eliminating natural gas instead. https://t.co/6kvNmNpLST
Another speaker from a Peoples Gas employee union supports the increase. Receives applause from a couple rows of people in their work shirts. https://t.co/2Hi9ujAC6q
Another employee talks about the work they do for the people of the city.
A speaker from People for Community Recovery, an environmental justice organization based in Altgeld Gardens. For too long, people have paid too much "to prop up the fossil fuel industry." Illinois leads country in utility shutoffs. 1/5 of Chicagoans are behind on their bills.
Next, a Sierra Club speaker opposes the rate hike. She's troubled by using the rate hike to elongate the use of fossil fuels. There are alternatives that are safer for families and better for the climate. Natural Gas in homes is tied to asthma and cancer.
Next public speaker is a pastor and policy director for Faith in Place. "Peoples Gas should use their record profits to improve their infrastructure." "...We want a future in houses that don't slowly kill us." https://t.co/dsnI5NqhzV
Another speaker with severe asthma is opposed and speaks about asthma rates. It's exacerbated by indoor air pollution. We need to transition to a cleaner energy source.
Another speaker compares the requested 9% rate of return to the 10% rate of return on the stock market. It's too high.
Another speaker got a bill from Peoples Gas today. Is already paying too much for very little use. We live on tight budgets. Why don't you do the same thing?
Another opponent says she has had to keep her place too cold in the winter due to high bills. I'm glad you give to charity but that's our money. Peoples Gas really does not care about the people.
Next person. People can't afford to live in the city. The $12 a month increase is huge for a lot of people. If you're making record profits, use that money. Deal with mismanagement and corruption first. As a union worker, says pay increases shouldn't come from rate increases. https://t.co/47hMdW2lGq
An AARP member: "to see a rate increase like this on people barely getting by just doesn't make any sense." Look at how you can justify taking money from seniors on a fixed income.
The director of Illinois PIRG speaks in opposition. Believes the current pipeline replacement program is mismanaged. The ICC has leverage and should use this request to rein in the program. We should phase out natural gas appliances. https://t.co/IoWhJW0jxY
Another opponent. Average customer faces a monthly bill of over $50 before they even use any gas. Advocates a proposal for reducing bills for lower income customers, including some who just miss qualifying for LIHEAP.
Next speaker is from Englewood, knows what's it's like to make tough decisions about which bills to pay. "Please do not accept this rate hike."
Another speaker is for the rate discount plan on the whole bill, not just one portion, like the current plan. https://t.co/f0LQnoy7tI
An opponent talks about working with too many people who have utilities shut off. Peoples Gas gets socialism that covers their losses but customers don't. Please slow down on these projects we don't need. Climate change is here.
A representative of @NRDC criticizes high fixed charges compared to other Midwest utilities. Perpetuates the affordability crisis. Reduce the customer charge and adopt a tiered income discount rate. https://t.co/w08IYDSTCT
@NRDC A second NRDC speaker brings up automatic rate increases people already pay thanks to another fee on the bill.
"Gas is not clean. It can never be clean." It's driving the climate crisis.
End line extension allowances.
System needs to be phased out.
"Gas is not clean. It can never be clean." It's driving the climate crisis.
End line extension allowances.
System needs to be phased out.
A member of Third Act asks, before rate increases, "let's see your plan for clean energy transition."
Wants a discussion on what a fair rate of return is for public utilities. Asks ICC to do their job of protecting the people of Illinois.
Wants a discussion on what a fair rate of return is for public utilities. Asks ICC to do their job of protecting the people of Illinois.
New speaker says we should not spend money on infrastructure that will become stranded assets. We need to end natural gas use to address climate change.
Next. If Peoples Gas hasn't maintained their infrastructure, isn't that negligence? This isn't a Netflix rate hike. It's an essential service.
A member of Third Act challenges ICC to recognize that the arc of energy use is bending toward decarbonization. Nobody is thinking about what Peoples Gas will be a generation from now. No one is demanding they become part of the solution. Say no until we have a long term solution
Another Third Act member talks about climate change. 30-40% of carbon emitted by Chicagoans is from gas heating our homes. He put in a heat pump to get off Peoples Gas. But his bill is still high anyway due to mandatory customer fees.
A member of Blacks in Green and other groups thinks the rate increase is "not just inappropriate. It's immoral." Utility monopoly was created for the profit of white men. "It's time to change our spirit about how we treat human beings."
The stranded assets represent escalating costs. She stands with the people who have to run an extension chord to their neighbors. Deny the rate hike and engage in systemic change.
A bonus comment is from someone who has been doing that super loud boomer finger whistle all meeting. Super annoying pet peeve of mine.
Ironically, she asks for a moment of silence so we can listen to the better angels of our nature. I'm trying to appreciate her enthusiasm.
Ironically, she asks for a moment of silence so we can listen to the better angels of our nature. I'm trying to appreciate her enthusiasm.
After a final speaker in opposition, they're moving into a less formal q&a session that won't be part of the official record.
A speaker asks about estimated costs and completion dates for the program to update system infrastructure and safety. The Peoples Gas CEO is answering. Public speaker points out the escalating costs, delayed deadlines and lack of measurable outcomes. Goal of program was changed.
Someone asks if executives on stage will get a salary increase from the rate increase. CEO says they have to pay market rates to attract talent.
Someone asks if they've experienced getting their gas cut off like she has. No one responds.
Agency Information
Illinois Commerce Commission
From the ICC ’About’ webpage:
The ICC’s mission is to balance the interests of consumers and utilities to ensure adequate, efficient, reliable, safe and least-cost public utility services, while promoting the development of an effectively competitive energy supplier market.
The ICC is also directed by state law with protecting the public by overseeing certain transportation activities, including railroad safety, trucking insurance and registration, relocation and safety towing, and household goods moving companies.
The Illinois Commerce Commission has five members, one of whom is designated as Chairman by the Governor. Each Commissioner is appointed by the Governor and confirmed by the Illinois State Senate for a five-year term. Under Illinois law, no more than three Commissioners may belong to the same political party.
See minutes from past ICC open meetings here.
