Peoples Energy, North Shore Gas Look for Rate Hikes

By Chuck Sudo in News on Feb 16, 2011 9:30PM

ComEd isn't the only utility looking to increase its rates. Both Peoples Energy and North Shore Gas are looking for rate hikes to account for rising costs in natural gas delivery. Delivery accounts for 40 percent of a Peoples Energy bill and, at a time when natural gas sales and the customer base for both Peoples Energy and North Shore Gas are declining, the costs of delivering natural gas to customers has hit the utilities where it hurts the most: their respective bottom lines.

Will Evans, Jr., president of North Shore Gas, said declining sales and a shrinking customer base have cut into the company’s revenue.

“During the economic slowdown, the company’s overall costs have continued to rise,” Evans said in a press release. “Our expenses associated with maintaining the system and our investment in the delivery system have also continued to rise, along with a wide range of back-office administrative costs.”

This new request comes on the heels of a rate hike the Illinois Commerce Commission approved last year. It won't happen immediately, though. The ICC rate hike process is an 11-month review with no guarantees a rate hike will be approved. Meanwhile the utility watchdog group Citizens Utility Board said they will review the rate hike themselves to make sure consumers aren't paying "one penny more" than they should.