Protest held outside Peoples Gas HQ over proposed $402M rate hike

CHICAGO (WLS) -- A protest was held Monday morning outside Peoples Gas headquarters to protest a proposed $402 million rate hike.

Consumer and environmental groups want the utility to stop a plan to push the hike, which would be the largest in Illinois history, through the general assembly. Protesters say residents can't afford it. Peoples Gas says the money is needed for vital infrastructure improvements.

Peoples is asking for permission to raise rates by $195 million while also merging an additional $207 million into delivery costs to offset a $15-per-month surcharge slated to expire at the end of the year.

That surcharge has funded a pipe replacement program that could end up costing more than $8 billion by the time it wraps up in 2040, nearly six times what the utility originally estimated in 2007.

The rate hike would mean a $12 a month increase in your bill, but the utility said a projected decrease in natural gas costs would balance that out.

The Sun-Times Media Wire contributed to this report.