{"id":37394,"date":"2023-05-26T11:39:31","date_gmt":"2023-05-26T16:39:31","guid":{"rendered":"https:\/\/www.citizensutilityboard.org\/?p=37394"},"modified":"2023-08-18T13:23:26","modified_gmt":"2023-08-18T18:23:26","slug":"legal-update-cub-testimony-on-record-rate-hikes-urges-1-6-billion-in-reductions","status":"publish","type":"post","link":"https:\/\/www.citizensutilityboard.org\/blog\/2023\/05\/26\/legal-update-cub-testimony-on-record-rate-hikes-urges-1-6-billion-in-reductions\/","title":{"rendered":"Legal update: CUB testimony on record rate hikes urges $1.6 billion in reductions"},"content":{"rendered":"

\"\"By: <\/span>Eric DeBellis
\n<\/span><\/em>General Counsel<\/span><\/em><\/p>\n

CUB\u2019s legal team has been working nonstop the past month, filing expert testimony with state regulators to oppose a record six utility rate hikes, exposing the proposed increases as unjust and unreasonable and urging state regulators to cut them by a combined total of at least $1.6 billion.\u00a0\u00a0<\/span><\/p>\n

Below is a summary of what Regulatory Counsel Laura Loyd and I and a team of experts have done over the past month. Consider all these numbers “at least,” as we expect to support testimony from other consumer advocates, such as the Illinois Attorney General’s Office, to add to the numbers we propose below.\u00a0 <\/span><\/p>\n

(If you want to join the fight, visit the “Take Action” tab at CUBHelpCenter.com<\/strong><\/a> to speak out against the rate hikes, or just scroll to the bottom of this article.)<\/span><\/p>\n

ComEd rate hike, ICC Docket # 23-0055
\n<\/strong>What ComEd wants:<\/strong> $1.5 billion increase over four years. <\/span>(state record)<\/strong><\/span><\/p>\n

CUB expert testimony recommends reducing the rate hike by:<\/strong> $914.5 million\u00a0<\/span><\/p>\n

CUB partners in this case:<\/strong> CUB, the Illinois Industrial Energy Consumers (IIEC) group, Environmental Defense Fund, Community Development Corporation of Pembroke-Hopkins Park and People for Community Recovery partnered to commission expert testimony from Brubaker & Associates, Inc., a Missouri-based consulting firm that specializes in utility regulation, and the environmental sustainability consulting firm Energy Futures Group out of Vermont.<\/span><\/p>\n

CUB\u2019s news release:<\/a> <\/strong>“It\u2019s immediately apparent that the company is pushing for an excessive profit rate for its shareholders. ComEd has to maintain its system, but it never deserves a blank check. We urge state regulators to make deep cuts in ComEd\u2019s rate-hike proposal.\u201d\u00a0\u00a0<\/span><\/p>\n

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Ameren (electric) rate hike, ICC Docket # 23-0082
\n<\/strong>What Ameren wants:<\/strong> $481 million over four years.<\/span><\/p>\n

CUB expert testimony recommends reducing the rate hike by:<\/strong> $463 million (Note:<\/strong> With testimony from other parties, including the Illinois Attorney General\u2019s Office, CUB plans to support more than $500 million in reductions.)\u00a0\u00a0<\/span><\/p>\n

CUB partners in this case:<\/strong> CUB, the Illinois Industrial Energy Consumers (IIEC) group, Federal Executive Agencies, Prairie Rivers Network and United Congregations of Metro East partnered to commission expert analysis from Brubaker & Associates.<\/span><\/p>\n

CUB\u2019s news release:<\/a> <\/strong>“While a utility has to maintain its system, Ameren should not get a blank check. Our expert witnesses combed through Ameren\u2019s rate-hike proposal and cut out the fat, including an excessive profit rate for shareholders. We are hoping other parties will be able to recommend further reductions.\u201d (Note:<\/strong> The amount of reductions has been adjusted to $463 million since the writing of this news release.)\u00a0<\/span><\/p>\n

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Nicor rate hike, ICC Docket # 23-0066
\n<\/strong>What Nicor wants:<\/strong> $320 million<\/span><\/p>\n

CUB expert testimony recommends reducing the rate hike by:<\/strong> $106.5 million.\u00a0<\/span><\/p>\n

CUB partners in this case:<\/strong> CUB, the Illinois Industrial Energy Consumers (IIEC) group and Community Development Corporation of Pembroke-Hopkins Park partnered to commission an expert analysis by Brubaker & Associates.
\n<\/span>
\n<\/span>CUB\u2019s news release:<\/a><\/strong>\u00a0<\/b>\u201cNicor\u2019s rate-hike request is unjust and unreasonable\u2014it will only be a hardship for customers, and it should be gutted. We know consumers are struggling\u2014we hear from them every day. With climate change getting worse and customers having a harder and harder time paying their bills, we can\u2019t afford to burn so much money on an expensive fossil fuel like gas that will soon be obsolete.\u201d<\/span>\u00a0<\/b><\/p>\n

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Peoples Gas rate hike, ICC Docket # 23-0069; North Shore Gas rate hike, ICC Docket #23-0068
\n<\/strong>What Peoples\/North Shore Gas want:<\/strong> Peoples, $402 million a year <\/span>(state record)<\/strong><\/span>; North Shore, $17 million a year.\u00a0<\/span><\/p>\n

CUB expert testimony recommends reducing the rate hike by:<\/strong> Peoples, $63 million; North Shore, $3.1 million. (Note:<\/strong> With testimony from the Illinois Attorney General\u2019s Office, we expect our reductions in the Peoples Gas case to go over $100 million.)\u00a0<\/span><\/p>\n

Partners in this case:<\/strong> CUB, the City of Chicago and People for Community Recovery partnered to commission expert analysis from Brubaker & Associates.\u00a0<\/span><\/p>\n

CUB’s news release:<\/strong><\/a> “Peoples Gas customers have been suffering for years under rapidly rising bills, as the company rakes in record profits. This rate hike is unjust and unreasonable, and we urge state regulators to hold the utility accountable. The writing is on the wall: As climate change worsens and our bills get higher, we can\u2019t afford to continue bailing out Peoples Gas and an outdated and expensive fossil fuel system.\u201d<\/p>\n

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Ameren (gas) rate hike, ICC Docket # 23-0067
\n<\/strong>What Ameren wants:<\/strong> $148 million<\/span><\/p>\n

CUB expert testimony recommends reducing the rate hike by:<\/strong> $59.2 million<\/span><\/p>\n

CUB partners in this case:<\/strong> CUB, the Illinois Industrial Energy Consumers (IIEC) group, Federal Executive Agencies, Prairie Rivers Network and United Congregations of Metro East partnered to commission expert analysis from Brubaker & Associates.\u00a0<\/span><\/p>\n

CUB\u2019s news release:<\/a><\/strong> “Ameren\u2019s push to increase gas bills and inflate its profit rate is unjust and unreasonable, and we call on state regulators to slash this unnecessary rate hike. As climate change gets worse and customers struggle to afford their bills, we can\u2019t keep bailing out an expensive, outdated fossil fuel like gas.\u201d\u00a0\u00a0<\/span><\/p>\n

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Thanks for all your support in these battles. The hard work is just beginning. Now we have to convince regulators to make deep cuts in these hikes. Here’s a general schedule for the rest of the year:\u00a0<\/span><\/p>\n