Peoples Gas rate hike rehearing

On January 3rd, utility regulators at the Illinois Commerce Commission approved a limited rehearing on Peoples Gas pipe replacement program spending. The Commission originally ruled that Peoples Gas failed to justify the cost of and plan for its pipe replacement program in its 2023 rate hike request, and therefore disallowed spending on the program pending further investigation. Peoples Gas requested a rehearing to clarify how current unfinished projects should continue and how pipe replacement program spending relates to emergency repairs. 

In its request for rehearing, Peoples Gas presented new evidence it had failed to introduce during the rate case. In comments after approving the limited rehearing, Chairman Scott addressed this failure:

“The Commission is rehearing this topic in part because Peoples Gas provided information in its … Application for Rehearing that it chose not to include in this docket even after the Commission and parties requested it.

Further this unexplained new information raises questions as to the breadth and scope of SMP that the Commission finds necessary to address. The Commission’s decision to grant rehearing should not be misconstrued to imply that future withholding of information in dockets will allow any utility to exploit any sort of procedural advantage or simply to get another shot at your case.”

The limited rehearing will address if, despite the general pause in the program, in-progress pipe replacement projects should continue in 2024. It also seeks to clarify to what extent emergency repair work is part of the pipe replacement program. If any currently paused work is approved to move forward, there could be a marginal increase to the Peoples Gas rate hike and customer bills. 

The Commission is requiring Peoples Gas to submit very specific and detailed information for it to evaluate in the rehearing. Peoples Gas will submit new evidence to make its case by February 6th, and the rehearing will conclude by the end of May. 

Peoples Gas has already stated in a filing to the Securities and Exchange Commission that it expects to appeal the Commission’s original rate decision to the Illinois circuit court.