* Sun-Times…

An administrative law judge has recommended that state regulators approve a smaller rate increase for Peoples Gas than the utility asked for — but the increase would still add up to the biggest hike customers have ever seen in Illinois.

The proposed order filed Friday by Glennon Dolan, an administrative law judge for the Illinois Commerce Commission, recommended the panel vote to approve rate increases totaling about $350 million for Peoples Gas, which is seeking a record-high increase of $402 million.

Consumer advocates want to see the proposed hike slashed below $290 million, which would still top the state’s previous all-time high increase of $240 million approved for Nicor in 2021. […]

A $402 million increase would raise the average monthly residential bill by about $11.83 starting next year, a cost Peoples Gas says it expects to be offset by falling natural gas prices.

The proposed order’s $350 million increase would come out to an extra $10 per month.

While the commission has often followed proposed orders from its administrative law judges, Sarah Moskowitz, executive director of the Citizens Utility Board, said she’s not sure what to expect from the panel this year. Gov. J.B. Pritzker has appointed three new members since March, including chairman Doug Scott.

The draft decision is here.

* Illinois PIRG…

The newly constituted [ICC] has demonstrated on multiple occasions this year that it is prepared to take a more proactive, pro-consumer approach, ordering Peoples Gas to issue a $15 million refund to its customers in May and rejecting $31 million of infrastructure spending by suburban utility Nicor Gas in June. In both instances, the Commission overruled the judge’s Proposed Order.

The rate hike comes as the “QIP” law that has fueled large gas utility rate increases and shielded Peoples Gas from accountability expires at the end of 2023.

Among many other issues being litigated in the case, the Proposed Order:

• Does nothing to immediately address the failing Peoples Gas pipe replacement program, the budget for which has ballooned from up to $2 billion to $11 billion. Consumer and environmental advocates, along with the Office of the Attorney General, are calling on the Commission to enact immediate reforms, while also launching an in-depth investigation of the troubled program. Instead, the Proposed Order would require Commission staff to draft a report with recommendations within 6 months.
• Does nothing to rein in unnecessary and wasteful Peoples Gas spending going forward — the very spending that has led to this historic rate hike. Consumer and environmental advocates, along with the Office of the Attorney General and the City of Chicago, proposed a number of policies that would bring Peoples Gas spending under more scrutiny going forward. Instead of considering those specific policy proposals, the Proposed Order postpones consideration of them until an upcoming “future of gas” proceeding.
• Rejects almost all of the proposals made by the Office of the Attorney General to disallow tens of millions of dollars of unjustified Peoples Gas spending.

In more positive outcomes for consumers, the Proposed Order adopts a slightly lower profit rate than that proposed by Peoples Gas. The slightly lower profit rate is the primary reason the Proposed Order drops the rate hike from just over $400 million to $350 million. The Proposed Order also rejects the utility’s proposal to raise its fixed monthly charge to about $45 per customer. Instead, the order maintains the current fixed monthly charge of about $31, despite arguments from many parties that it should be even lower. High fixed charges discourage energy efficiency and conservation and increase affordability burdens.

Discuss.