Millions of Illinoisans could see higher energy bills next year, but how much higher will be determined by a state agency whose oversight powers recently were expanded. The state's four gas utilities and two largest electric utilities, which collectively serve 4.1 gas customers and 5.3 electric customers, are asking the Illinois Commerce Commission to increase rates. Electric utilities have asked to raise rates by a combined $2.8 billion over four years, while gas utilities have requested $890 million in increases next year.
CHICAGO -- Millions of Illinoisans could see higher energy bills next year, but how much higher will be determined by a state agency whose oversight powers recently were expanded.
The number of cases in front of the ICC is due, in part, to a pair of major policy changes affecting the way utilities request rate increases and the commission's authority to amend those requests. For electric utilities, that means a more complicated, multiyear rate-setting process and a more thorough review of profit margins. For gas companies, that means more scrutiny of infrastructure costs.
And while Pritzker hasn't weighed in on the electric cases, he wrote a March op-ed in the Chicago Sun-Times calling for increased accountability for gas companies. Advocates say that program -- referred to as the"qualified infrastructure plant," or QIP -- encouraged wasteful capital spending. For example, the consumer advocacy group Illinois PIRG says Peoples Gas' pipeline replacement program in the Chicago area has been mismanaged and overly broad, although the utility says the program is needed to reduce safety risk.
"We're making ongoing investments in system integrity and QIP, no QIP, that commitment to safe and reliable gas delivery service doesn't change," Matthew Tomc, an executive at Ameren that oversees government affairs, said in an interview. "This rate increase is necessary to run our business due to inflation and rising global impacts that continue to affect our operating and maintenance costs," Nicor Gas spokesperson Jennifer Golz said in an email statement.
"Not only is Peoples Gas requesting a record-high rate hike at the same time that they are raking in record profits, but take a look, a real close look, at who will bear this burden: the working people of Chicago, people of color," the city's treasurer, Melissa Conyears-Ervin, said at a June 1 news conference.
CEJA also ended a controversial formula rate-making process that was a product of ComEd's lobbying efforts a decade earlier. The formula-based rates were a major focus of the recent federal criminal corruption trial that ended with the conviction of ComEd's former CEO and three ex-lobbyists. ComEd's plan would increase prices over four years, with residential customers paying around $200 per year more in electric prices by 2027. Ameren Illinois' similar plan would result in the average residential customer paying about $300 more per year by 2027.
A point of contention between advocates and the utilities has been the electric utilities' return on equity, or ROE. This is the main component of a utility's profit that had, for years, been automatically calculated using a formula derived from the interest rates on 30-year Treasury bonds. Tomc argued that Ameren's proposed formula for return on equity would be better for the electric grid.
While gas utilities have included rate design proposals in their current rate cases, ComEd and Ameren will file electric rate design cases separately over the coming years, according to Karen Lusson, a senior attorney at the National Consumer Law Center.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Consumer Advocates, Utilities Spar Over Potential Energy Price IncreasesMillions of Illinoisans could see higher energy bills next year, but the size of those increases will be determined by a state agency that has recently had its oversight powers expanded.
Read more »
US lawmakers urge FTC to finalize new consumer protections for car buyersA group of 17 Democratic U.S. lawmakers on Wednesday urged the Federal Trade Commission to finalize new consumer protections for car buyers despite objections from auto dealers who argue the rules would actually raise the cost of buying a car.
Read more »
Consumer control of data will transform the next decadeWe’re entering the data ownership era where consumers will retain control of their data and stop giving it away for free. Here’s why it's more powerful in their hands. MastercardAP ad
Read more »
Euro area Consumer Confidence Indicator improves to -16.1 in June vs. -17 expectedConsumer sentiment in the Euro area improved modestly in June with the Consumer Confidence Indicator edging higher to -16.1 from -17.4 in May, the Eur
Read more »
Consumer tip: How to recognize text message scamsThe scammers are relying on you to not pay attention to details in these texts and respond with less thought.
Read more »
UK consumer morale touches 17-month high despite inflation pain - GfKBritish consumer sentiment hit its highest level since January 2022 as households turn more optimistic about their finance and economy, despite stubborn inflation and rising interest rates, market research firm GfK said on Friday.
Read more »