Illinois Commerce Commission denies Peoples Gas rate hike request

CHICAGO (CBS) -- The Illinois Commerce Commission on Thursday denied Peoples Gas' request for a nearly $8 million rate hike.

However, the ICC did give the green light for an additional $1.6 million for emergency work.

The proposed $7.9 million rate hike was on top of a $303 million increase that went into effect in December of last year.

ICC staff and an administrative law judge supported the rate hike. But Illinois Attorney General Kwame Raoul, the City of Chicago, and the advocacy group Illinois PIRG were all opposed to the increase – calling instead for no incremental rate hike at all or a smaller one, according to Illinois PIRG.

The advocacy group said during oral arguments on the case last week, ICC commissioners were skeptical of Peoples Gas' arguments for the rate hike – noting ongoing problems with the Peoples Gas pipe replacement program, which the ICC paused and put under investigation last fall, according to Illinois PIRG.