As the Illinois Commerce Commission nears a decision on the fate of the paused Peoples Gas pipeline replacement program following a yearlong review, a study released Tuesday for the Citizens Utility Board warns that completing the work would cost another $12.8 billion — topping recently revised utility projections by more than $5 billion. Peoples Gas would need to impose record-breaking 7% annual rate increases over the next 15 years to cover that cost, effectively doubling delivery charges for its customers by 2040, the target completion date for the Safety (formerly System) Modernization Program, according to the Groundwork Data report commissioned by CUB. “Our analysis finds that resuming the SMP at full funding levels puts Peoples Gas on an unsustainable trajectory with respect to revenue requirements and customer rate increases,” the report concluded. Peoples Gas, which was provided a copy of the report before its release, refuted many of the findings — including the remaining cost — and disagreed with the conclusion that completing the pipeline replacement program was financially untenable for the company and its customers. At the same time, the utility acknowledged that the projected price tag has gone up by billions of dollars since the program was paused by the ICC last fall. “Unfortunately, the delay caused by the ICC’s decision to pause the safety work will likely have some cost impacts,” Peoples Gas spokesperson David Schwartz said in a statement. Groundwork Data is a New York-based consulting firm focused on the transition to clean energy, a government-mandated change that the report said will reduce demand for natural gas before the pipeline project is completed, increasing the cost burden for remaining Peoples customers. The ICC is expected to issue an order in January on the scope of the pipeline replacement program moving forward, but Tuesday’s report is too late to be filed as part of the proceedings, a CUB spokesperson said. Launched in 2011, the program to replace 2,000 miles of aging iron pipes below Chicago streets was plagued from the outset by delays and budget overruns.
Peoples Gas Pipeline Program Will Cost Another $12.8 Billion To Complete, Report Says, Socking Chicago Customers With 7% Annual
Robert Channick, Chicago Tribune: Business
Tue, 10/29/2024 - 2:00am
Topics: illinois commerce commission safety formerly system modernization program smp unfortunately david schwartz new york-based the icc launched milwaukee-based wec energy group tribune the groundwork jim chilsen peoples gas president barack obama u.s san bruno california nov cub-commissioned future this peoples gas citizens utility board groundwork data cub our icc icc icc s schwartz groundwork january chicago peoples gas report annual pipeline program cost another billion billion to complete replacement projections project paused review years rate revised study part process spokesperson time completing date disaster state regulators financial spending proposed funding tuesday increases decision analysis filed including late expected issue remaining order spent consumer company projected finish statement aging costs
Welcome to Wopular
Wopular is an
online newspaper rack,
giving you a summary view of the top headlines from the top news sites.
Senh Duong (Founder)
Wopular,
MWB,
RottenTomatoes
MoviesWithButter : Our Sister Site
- "Expendables 4" Starts Shooting This Fall, Says Randy Couture at the Arnold Sports Festival more
- “Expendables 4” Gets Funding Interest from “Ip Man 3” Financier more
- "Ip Man 3" Distributor Suspected of Box Office Fraud, Parent Company Loses $200M in Market Cap more
- Yen Targets "Ip Man 4" for 2018 Release; Discusses Film with Director, Producer more
- "Ip Man 3" Shatters Expectations with $72M Opening [China Box Office] more