CHICAGO — Peoples Gas, today, filed a request with state regulators to restructure how costs are recovered from customers for critical infrastructure projects. The filing is not expected to increase the typical customer’s bill. With natural gas prices forecast to decline this year and next year, customer bills are expected to stay largely flat as new rates take effect in 2024.
As part of the filing, Peoples Gas will not seek an extension of the automatic bill adjustment rider — known as QIP. The company will return to the traditional ratemaking process to recover the costs of necessary infrastructure improvements. This change will affect the process through which state regulators review and approve construction work, but will not affect what customers pay. The change is necessary because the regulatory approach the State of Illinois currently uses to aid its oversight of utilities, including a surcharge to pay for infrastructure improvements, is set to expire at the end of 2023.
The filing ensures Chicagoans will continue to have the safe, reliable, environmentally sustainable energy they depend on — especially when temperatures drop to zero and below, as they did during the recent holiday cold snap.
Chicago home heating bills are currently well below other major U.S. cities, and that will continue with this filing.
The Illinois Commerce Commission’s review of the filing is expected to last up to 11 months.