Illinois Commerce Commission Slashes Proposed Rate Increases from ComEd, Peoples Gas

博马/十大网赌靠谱网址平台 intervened in both cases on behalf of our member buildings

In 2023, ComEd and Peoples Gas both filed utility rate increases with the Illinois Commerce Commission (ICC). Given the significant impact of those increases on our member buildings, 博马/十大网赌靠谱网址平台 intervened in both cases to advocate for reduced rates and costs.   

博马/十大网赌靠谱网址平台 joined several organizations in pushing against rate increases for both cases. After hearing arguments and reviewing calculations and testimony from 博马/十大网赌靠谱网址平台 and other parties, the ICC weighed in on utility spending and future planning with dramatic spending cuts; reductions in rate of return on equity; and heightened scrutiny of utility initiatives, 假设与结论.   

The Commission noted that the utilities failed to sufficiently incorporate customer affordability into their proposals. “The Commission’s decisions today protect Illinois ratepayers and the goals CEJA [Climate and Equitable Jobs Act] created. Illinois’ utilities are specifically required to consider affordability and cost-effectiveness so that customers are not unfairly asked to shoulder undue costs tied to the state’s energy transition,国际商会主席道格·斯科特说. “虽然我们还没有到达终点线, compliant plans from the state’s largest utilities will help lead us to an energy transition that works for all Illinoisans.”    

Other notable outcomes in the ICC orders include a strong focus on low-income customers and environmental initiatives. Some elements of each ICC proceeding will continue into 2024, 但几个重要因素已经确定, 如下所示. 

人民煤气案

The ICC reduced Peoples Gas’s requested increase in its revenue requirement by $101 million for the 2024 delivery year. This is estimated to reduce the rate increase for 博马/十大网赌靠谱网址平台 members by just over $5 million in 2024. The ICC significantly reduced the Peoples Gas requested return on equity rate of 9.9% to 9.38%.   

The ICC also rejected the entire $265 million program budget for the decades-long System Modernization Program. Additionally, the ICC denied over $200 million that Peoples Gas spent to replace several O&十大网赌靠谱网址平台的M工作室, finding that the company failed to prove that those facilities could not have been renovated or replaced at a lower cost.  

而不是, the ICC instituted a new “Future of Gas” workshop and docket process, 必须在2月14日开始吗, 2024. As decarbonization conversations ensue across the country, the ICC ordered all three gas utilities to prepare and file long-term infrastructure plans for their gas distribution systems.  

不幸的是, the ICC rejected 博马/十大网赌靠谱网址平台’s rate design arguments that would have further reduced rates for member buildings. 而不是, 国际商会批准了人民天然气公司提出的费率设计, while adopting the most expansive and generous low-income discount program of the three alternatives that were presented by intervening parties.  

The ICC has granted Peoples Gas’s request for rehearing of certain elements of the final order. The rehearing is limited in scope to considering whether some of the System Modernization Program budget should be restored for incomplete pipe replacement work and emergency repair work.   

来例

The ICC ruled for an approximately $1 billion reduction in revenue requirement increases for the 2024 through 2027 delivery years. This is estimated to be a reduction of increase for 博马/十大网赌靠谱网址平台 members of $101 million between 2024 and 2027. The ICC significantly decreased the Return on Equity from ComEd’s requested 10.5%(按比例增加到10%).到2027年为65%)到8%.905%.  

The ICC also rejected ComEd’s Grid Plan and directed ComEd to refile its plan in March with an added focus on benefits to environmental justice communities, 既定的气候目标, 和负担能力.   

The ICC also empowered an expansion of the ICC’s Data Access Working Group.  

下一个, ComEd has kicked off workshops to discuss the Grid Plan and will file a revised Grid Plan by mid-March 2024.   

ComEd was also granted a rehearing by the Commission to review revenue requirement calculations and the case is scheduled to conclude by May of this year.  

整体提高

Despite the significant reductions made by the ICC, the overall rate increases are still significant. ComEd’s rates will increase by over $500 million between 2024 and 2027, and Peoples Gas rates will increase by over $300 million per year.   

博马/十大网赌靠谱网址平台 members have several options to reduce the negative impact of these cost increases. Building members are encouraged to participate in ComEd and Peoples Gas 能源 Efficiency Programs to reduce energy and costs; develop demand response and load control capabilities; and capture cost savings and rebates available through renewable energy supply options such as community solar subscriptions and self-direct renewable energy credit programs.