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Chicago is My Home

19
Feb

Chicago Consumers Hit With New People Gas Increase Based on Expected Use

Author: Adam Fendelman, Category: Business

CHICAGO – For the second time in a year, utilities customers in Chicago will see a rate increase. This time, though, it’s not ComEd. Gas bills are going up as well.

In a contentious move that could have consumers paying for gas they might not even use, the Illinois Commerce Commission (ICC) recently approved a $71 million gas rate hike for Peoples Gas and North Shore Gas. The increase residential and commercial customers accrue on bills will not be for actual gas usage but for expected use.

The initiative, which is called “decoupling,” gives the utility the ability to adjust billing statements based on determined revenue from Peoples Gas. Peoples Gas says a rate increase is a result of weather and customer conservation and the company isn’t guaranteed to garner a profit.

“They’re trying to put the best possible spin on the increase,” said Citizens Utility Board (CUB) executive director David Kolata in an interview with MidwestBusiness.com. “It’s a double whammy for consumers.”

In general, Kolata says people are using less gas as a way to conserve energy and thwart the high cost of gas. He says the increase isn’t fair for consumers. One issue that’s important to Peoples Gas is improved technology of furnaces. In the past, consumers were using machines with 82 percent efficiency to heat their homes.

By Stephanie Huls

3 Responses for "Chicago Consumers Hit With New People Gas Increase Based on Expected Use"

  1. Diane Flenaugh

    March 15th, 2008 at 7:03 pm

    1

    What about the seniors. will their rates go up as well. How unfair. what can be done about this. is it too late.

  2. Amy Seidenbecker

    July 2nd, 2008 at 4:11 pm

    2

    I have an apartment with stove only (not gas heat) and my normal gas bill was always at most $22/month. I just got hit with a $47+ gas bill, this is for one month. I called People’s Gas and they said it’s correct, and could not really explain the $31 customer charge, only defended it saying all customers must now pay over $15/mo for customer charge, what it means I don’t know!

    I’m thinking of cutting off the gas, as much as I like to cook, and getting in with some neighbors to share stove usage.

  3. Alyse Kelly

    July 7th, 2008 at 2:52 pm

    3

    500% increase Customer Charge !
    here’s a little tale ……… I have a small business only use gas for heat 6 months a year- Business customer charge is now $64.50 month and of course there is tax on that. my bill dated 7/17/08 - I used 1 therm my bill? $77.57. I didn’t even use a therm it’s an estimate. Last year we paid 165 in customer charges this year will be $865.
    This will cost our business 775 a year plus tax on that= $65 Also, I used to turn off my gas for the season, pay a fee to turn back on in fall, NOW, there is a large fee to turn back on and if a customer turns their gas on/off in a 12 month period they still pay the monthly fee.


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