1.0Citizens Utility Boardhttps://www.citizensutilityboard.orgrich600338<blockquote class="wp-embedded-content" data-secret="tCB8cRg9HD"><a href="https://www.citizensutilityboard.org/blog/2023/12/19/qa-on-icc-gas-rulings-and-how-they-impact-customers/">Q&A on ICC gas rulings and how they impact customers </a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://www.citizensutilityboard.org/blog/2023/12/19/qa-on-icc-gas-rulings-and-how-they-impact-customers/embed/#?secret=tCB8cRg9HD" width="600" height="338" title="“Q&A on ICC gas rulings and how they impact customers ” — Citizens Utility Board" data-secret="tCB8cRg9HD" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script type="text/javascript"> /* <![CDATA[ */ /*! This file is auto-generated */ !function(d,l){"use strict";l.querySelector&&d.addEventListener&&"undefined"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!/[^a-zA-Z0-9]/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),o=l.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),c=new RegExp("^https?:$","i"),i=0;i<o.length;i++)o[i].style.display="none";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute("style"),"height"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):"link"===t.message&&(r=new URL(s.getAttribute("src")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener("message",d.wp.receiveEmbedMessage,!1),l.addEventListener("DOMContentLoaded",function(){for(var e,t,s=l.querySelectorAll("iframe.wp-embedded-content"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute("data-secret"))||(t=Math.random().toString(36).substring(2,12),e.src+="#?secret="+t,e.setAttribute("data-secret",t)),e.contentWindow.postMessage({message:"ready",secret:t},"*")},!1)))}(window,document); /* ]]> */ </script> The Illinois Commerce Commission (ICC) issued separate rulings in November that reduced record rate hikes proposed by Illinois’ major gas utilities by $240 million, while also blocking most spending on a controversial pipeline-replacement program that has fueled a heating-affordability crisis for consumers in recent years. The ICC rulings also ordered the creation of a discount rate for lower-income customers and ordered the gas utilities to be part of a process to start planning for Illinois moving away from fossil fuels, such as gas, in the decades to come.  While CUB doesn’t like to see bills go up a penny at the hands of utilities that are rolling in profits, we’re encouraged that for the first time in a long time the gas companies got much less than what they wanted. In an editorial praising the ICC for standing up for gas customers, the Chicago Sun-Times wrote: “The amount of extra cash Illinois’ natural gas companies wanted to pipe in from customers’ wallets was cranked back significantly…That’s good news for people struggling to pay bills…It also helps Illinois pursue its goal of transitioning to a greater use of renewable energy.”  This Q&A is designed to give you background on the gas ruling.  How did the ICC rule on the proposed gas rate hikes?  In January 2023, four Illinois utilities proposed a record $812 million in rate hikes: Nicor Gas (2.2 million total customers), Peoples Gas (840,000 customers), Ameren Illinois (816,000 customers) and North Shore Gas (165,000 customers. On Nov. 16, after 11-month rate cases in which CUB and other consumer advocates fought to reduce the rate hikes, the ICC ruled to cut the proposed increases by about $240 million, or 30 percent. Here’s a breakdown:  Utility  What utility proposed What ICC approved How much was the rate hike reduced?  Nicor Gas $320 million  $223 million $96.99 million, or 30%, less than what Nicor wanted Peoples Gas $403.98 million  $302.9 million  $101.12 million, or 25%, less than what Peoples wanted Ameren Illinois $71.57 million $35.23 million $36.34 million, or 51%, less than what Ameren wanted North Shore Gas  $16.59 million $11.02 million  $5.57 million, or 34%, less than what Nicor wanted Totals $812.14 million $572.15 million $240.02 million, or 30% less than what the utilities wanted Note: Of the total rate-hike requests above, about $266 million, or about 33 percent, was already being recovered from customers through the Qualified Infrastructure Plant (QIP) charge on gas bills, and the ICC did not have the authority to reduce that amount. Under the QIP law, those funds ($207 million for Peoples Gas and $59 million for Nicor) were simply transferred from the QIP line item to regular delivery charges as part of the rate cases. Consumer advocates can challenge QIP spending in separate reconciliation proceedings in the future, and regulators can issue refunds of any costs they deem excessive and unnecessary. Over the last decade, the QIP line item has allowed gas utilities to more quickly rake in revenue outside a standard, 11-month ICC rate case proceeding. The fee was approved by the General Assembly in 2013 but sunsets, thankfully, at the end of 2023. […]https://www.citizensutilityboard.org/wp-content/uploads/2019/03/Gas-blog.jpg