Illinois judges cut proposed Peoples Gas rate increase by more than half

Administrative law judges for the Illinois Commerce Commission have suggested that Peoples Gas be allowed a $66 million rate increase for next year, considerably less than the $144 million the utility originally requested. The company had initially sought $202 million to complete a pipeline replacement program that regulators ordered to be reduced after years of cost overruns and delays. Critics, including consumer advocates, city council members, and the Illinois Attorney General’s office, have condemned the high cost.

Peoples Gas, owned by WEC Energy Group, says the pipe retirement is a binding safety requirement, not a discretionary expense. The commission is slated to issue a final ruling next month, concluding the quasi-judicial review of the rate request.