>>> YOUR GAS BILL COULD BE ABOUT $12 HIGHER PER MONTH NEXT YEAR.

THAT IS THE AVERAGE INCREASE IF THEY SUCCEED IN RAISING RATES.

IT IS THE FIRST TIME IN NINE YEARS THAT THE UTILITY COMPANY HAS ASKED FOR A RATE HIKE.

THEY WILL HAVE UNTIL THE END OF THE YEAR WHETHER OR NOT TO APPROVE IT.

HERE TO BREAK DOWN WHAT THAT MIGHT MEAN IS SARAH MOSCOWITZ, THE EXECUTIVE DIRECTOR OF THE UTILITIES BOARD.

LET'S START WITH YOU , IT HAS BEEN NINE YEARS SINCE THE LAST RATE HIKE, WHY DO WE NEED THIS NOW?

>> ABSOLUTELY.

WE HAVE MADE SIGNIFICANT EFFORTS IN OUR ENERGY DELIVERY NETWORK.

THE LATEST ADJUSTMENT TO OUR BASE RATE IS IMPORTANT SO THAT WE CAN CONTINUE TO DELIVER ENVIRONMENTALLY-SUSTAINABLE ENERGY THAT CHICAGOANS HAVE COME TO DEPEND ON, PARTICULARLY IN THE WINTER.

>> SARAH MOSCOWITZ, DO YOU BELIEVE THAT THE RATE HIKE IS JUSTIFIED?

BY THAT AMOUNT, WHY DO YOU THINK IT SHOULD BE SLASHED?

>> THERE ASKING FOR A $432 MILLION RATE INCREASE.

THIS WILL BE THE HIGHEST GAS RATE INCREASE IN ILLINOIS HISTORY.

SO , WITH THIS INCREASE YOU WILL SEE MONTHLY BILLS GOING UP BY ALMOST $12 PER MONTH.

THAT IS COMING OFF OF SIX YEARS OF RECORD PROFITS.

AND CHICAGO UTILITY CUSTOMERS HAVE BEEN DEALING WITH A MISMANAGED GAS LINE PIPE REPLACEMENT PROGRAM.

WE ARE CALLING ON CONGRESS TO BE HELD ACCOUNTABLE , AND REINING IN THEIR SPENDING.

THIS IS AN UNJUSTIFIED RATE HIKE.

>> WOULD YOU LIKE TO RESPOND?

>> ABSOLUTELY.

THERE IS A DELIVERY CHARGE, A CUSTOMER CHARGE, AND THERE IS THE GAS CHARGE, AND THEN THERE ARE OTHER CHARGES.

OUR BASE RATE ADJUSTMENT, ROUGHLY $12 IS ON THE DELIVERY CHARGE.

THE GAS CHARGE , EVEN THOUGH WE ARE SEEKING A RATE ADJUSTMENT TO THE DELIVERY CHARGE, WE ARE EXPECTING THROUGHOUT .24, OUR CUSTOMERS' BILL TO REMAIN FLAT AS COMPARED TO 2023.

>> IN MAY, 2023, ABOUT 28% OF CUSTOMERS WERE HIT WITH LATE PAYMENT FEES AND SURCHARGES.

HOW WAS THE COMPANY ADDRESSING , DURING THE AGE OF INFLATION, CUSTOMER CONCERNS?

>> IT IS AN IMPORTANT TOPIC FOR US.

WHICH IS WHY -- IT IS ONE OF THE REASONS WE HAVE NOT MADE A BASE RATE ADJUSTMENT FOR MORE THAN NINE YEARS.

THAT IS IMPORTANT.

WHAT WE WANT TO DO, ANY CUSTOMER THAT IS STRUGGLING TO PAY, ESPECIALLY WITH LOW INCOME, THEY ARE STRUGGLING TO PAY ALL OF THEIR BILLS.

WE ENCOURAGE THEM TO CALL US, LET US WORK WITH THEM AND SEE IF THEY QUALIFY FOR A PROGRAM.

WE HAVE RECENTLY CONTRIBUTED $5 MILLION , OF CORPORATE DOLLARS, TO HELP IN ENERGY ASSISTANCE .

WE CAN ALSO PUT THEM ON A PAYMENT PLAN.

DISCONNECTION IS THE LAST RESORT.

WE DO NOT WANT TO SHUT OFF OUR CUSTOMERS.

>> THERE WAS A HEARING ABOUT THIS ON TUESDAY.

WHAT DID YOU HEAR FROM CONSUMERS ABOUT HOW THIS MIGHT IMPACT THEM?

>> IT IS INTERESTING THAT ONE OF THE GAS COMPANIES MAIN TALKING POINT IS THAT PRICES WILL STAY THE SAME.

NATURAL GAS IS ONE OF THE MOST VOLATILE FOSSIL FUELS.

THERE IS NO CRYSTAL BALL SAYING WHAT THE PRICES WILL DO.

SECOND OF ALL, THE RATE HE IS TALKING ABOUT, HAVING NOT COME IN FOR A RATE INCREASE IN NINE YEARS, THE DELIVERY RATES HAVE BEEN INCREASING.

THE ILLINOIS GENERAL ASSEMBLY ALLOWED THEM TO ADD MORE TO OUR BILL.

IN 2013, WE WENT THROUGH SOME OF THE HIGHEST COSTS FOR UTILITY CUSTOMERS IN THE COUNTRY.

YOU GO TO OTHER STATES, AND PEOPLE ARE PAYING BETWEEN $40 AND $50 A MONTH ON THEIR BILL.

THAT IS THE REALITY THAT WE ARE FACING.

LAST MONTH, DISCONNECT MOMENTS WENT OUT TO 5% OF THEIR CUSTOMERS.

GAS BILLS ARE UNAFFORDABLE.

NOW THEY ARE COMING IN, HAVING ENJOYED SIX YEARS OF RECORD PROFITS, ASKING FOR A RECORD RATE HIKE.

>> SARAH EARLIER MENTIONED THE PIPELINE REPLACEMENT PROGRAM.

THE FEES ARE EXPECTED TO BE SUNSET IT THIS YEAR.

>> THAT IS A CRITICAL PART OF THE DECISION.

HERE ARE THE FACTS.

WE HAVE BEEN IN BUSINESS SINCE 1850.

ONE OF THE REASONS WHY IT IS ESSENTIAL TO OPERATING OUR NETWORK IS BECAUSE WE HAVE PIPES IN THE GROUND THAT WERE INSTALLED IN THE 1800s BEFORE ABRAHAM LINCOLN WAS EVEN NOMINATED TO BE PRESIDENT , BEFORE THE CIVIL WAR.

IF YOU COMPARE OUR RATES TO OTHER MAJOR URBAN CITIES, WE HAVE HAD PIPES IN THE GROUND LONGER THAN CHICAGO, NEW YORK, PHILADELPHIA, BOSTON.

OUR PRICES REMAIN 28% BELOW AVERAGE.

AND WE ARE OPERATING AN ANTIQUATED SYSTEM.

AND IN INDEPENDENT FIRM HAS INDICATED AS SUCH.

80% OF THE REMAINING IRON PIPES, THEY HAVE LESS THAN A 15-YEAR USEFUL LIFE.

THAT STUDY WAS PUBLISHED IN 2020.

IT IS IMPORTANT FOR SAFETY AND FOR THE RELIABLE ENERGY THAT WE DEPEND ON, TO REPLACE THESE ANTIQUATED PIPES.

>> SORRY, YOUR GROUP HAS BEEN PUSHING FOR ALTERNATIVES.

WHAT ARE THE ALTERNATIVES LOOK LIKE, RATHER THAN INVESTING FURTHER IN THIS SYSTEM?

>> THIS IS A KEY POINT THAT I WOULD LIKE TO MAKE.

IS NOW REALLY THE TIME TO BE POURING MORE AND MORE MONEY INTO THIS MISMANAGED REPLACEMENT PROGRAM, WHICH HAS GONE OVER BUDGET BY BILLIONS, IT WAS NOW ESTIMATED TO BE UPWARDS OF $11 BILLION, LEAVING US INCAPABLE OF PAYING OUR BILLS AND NOT ABLE TO HEAT OUR HOMES.

IT IS A NECESSARY SERVICE.

NOW YOU ARE TRYING TO SNEAK MORE COSTS INTO A SYSTEM THAT IS UNHEALTHY.

AND IF, BEFORE THE DECADE IS OUT, IT MAY BECOME OBSOLETE.

>> VIRTUALLY EVERY MAJOR GAS AND UTILITY COMPANY COMES IN ASKING FOR RATE HIKES, PENDING APPROVAL FROM THE ILLINOIS CONGRESSIONAL COMMISSION.

WHAT DOES IT SAY TO YOU THAT ALMOST ALL OF UTILITY COMPANIES ARE ASKING FOR A SIMILAR RATE HIKE ?

>> INVESTMENT IN INFRASTRUCTURE IS IMPORTANT.

WHETHER YOU LOOK AT THE GAS MAINS, THE ELECTRICAL GRID, THE WATER MAINS , WE NEED TO CONTINUE TO ENSURE THAT ALL OF THOSE SYSTEMS ARE SAFE AND RELIABLE.

I WELCOME THE DISCUSSION, FOR WHAT SARAH POINTED OUT, IN TERMS OF EXPECTATIONS.

WHAT I'VE SEEN WITH PILOT PROGRAMS, IT COULD COST $75,000 TO CONVERT A HEATING SYSTEM OVER TO ALL ELECTRIC.

NOW, THAT IS THE KIND OF INVESTMENT THAT MIGHT BE NEEDED ON THE GRID FOR THE GRID TO HANDLE THAT AMOUNT OF ADDITIONAL LOAD.

THEY WANT TO TALK ABOUT OUR COSTS?

I WELCOME A BROADER DISCUSSION ON