People’s Gas and Their Use in Chicago
Millions of Chicagoans rely on People’s Gas to deliver heat in their homes. They are especially needed during the winter months, as it can get very cold in Chicago. However, many families continue to undergo a very huge problem, which is poverty.
Many families are unable to afford the cost of heating systems in their homes. Additionally, it is very hard for them to pay all of the other bills as well, which includes but is certainly not limited to gas, heat, water, lighting and more. However, there has been a new system that has been introduced, that may be a game changer for Chicagoans.
People’s Gas Requests Hike
People’s Gas has requested a hike when it comes to using their services. This has been completely impromptu, and many Chicagoans argue this has been very ‘selfish’ on their part. There are already many Chicagoans that are suffering, especially those that are in low-income neighborhoods. However, to many it seems that People’s Gas is in a way turning the other way, and instead focusing on their margins.
Subsequently, many have rallied against People’s Gas, and have therefore influenced the decision that has been reached. “The Commission rejected a significant part of Peoples rate hike request, disallowing $265 million that Peoples requested for new pipes and $236 million for new buildings,” according to the Environmental Defense Fund.
What Is This Discount Rate System?
This discount rate system is a long time coming for many Chicagoans. There have been many that have been asking political leaders to slash the hikes surrounding People’s gas. However, nothing has been done until finally these rates have been slashed. “After persuading state regulators to slash requested rate hikes sought by natural gas companies in Illinois, consumer advocates and environmental justice activists are hailing a new discount rate system that’s expected to help prevent more utility shut-offs in lower-income neighborhoods across Chicago,” according to the Chicago Sun Times.
Therefore, this is a much needed change for the city of Chicago, as many people will finally breathe a sigh of relief after this change has been implemented.
The Numbers Of This Cut
Many are wondering what the statistics of this particular cut may look like. They are very much in favor of People’s Gas. “The ICC reined in gas utility spending, paused Peoples Gas’ expensive pipeline-replacement program, said NO to the utilities’ push for an excessive profit rate for shareholders and cut the rate hikes by a combined total of $240 million,” according to the Citizens Utility Board.
Clearly, there is a very large amount of money that has been saved because of this particular move. Additionally, there is a hope that these numbers continue to decrease as the time goes by. However, many are saying this may be the only cut that is seen by People’s Gas and the City of Chicago.
The Future of This Issue
Many are grateful that this action has been fully realized by the government, and that the City of Chicago acknowledges that there are many that are struggling. However, People’s Gas has certainly been receiving a lot of hatred because of their wanting to get more money. However, many believe this is the first step to reducing the costs for low-income families.
This is also to help support them in their time of need. There is a hope that People’s Gas can learn from this, and therefore create a plan to help families, instead of worry about receiving greater income. Only time will tell if People’s Gas will implement anything to help low-income families, but this is certainly a very large wake up call.
Written by David Loran Jr
Sources:
Chicago Sun-Times: New discount rate system a ‘game changer’ for Chicagoans struggling with heating bills, advocates say
Citizens Utility Board: ICC reins in utilities, cuts rate hikes by hundreds of millions of dollars
Environmental Defense Fund: Peoples Gas Rate Case Decision Pivotal for Customers and Clean Energy Transition
Featured and Top Image Courtesy of Jeremy Buckingham’s Flickr Page – Creative Commons License
Inset Image Courtesy of Paul Downey’s Flickr Page – Creative Commons License
