New utility debt data demonstrates severity of Peoples Gas affordability crisis

As has been well established, the Peoples Gas pipe replacement program is driving a home heating affordability crisis in Chicago. New data on utility debt provided to the Commission underlines the severity of the problem. 

As has been well established, the Peoples Gas pipe replacement program is driving a home heating affordability crisis in Chicago. In 2018, during a meeting wherein the Illinois Commerce Commission decided it could do nothing to reform the program, then-Commission Chairman Brien Sheahan stated that “the long-term annual costs that they have proposed will cause too great a burden for too many households in Chicago.” 

New data on utility debt provided to the Commission underlines the severity of the problem. 

Issues of utility affordability, debt, and disconnection have received increased scrutiny over the past year, as the economic impacts of the pandemic have forced many families to make tough decisions about which bills to pay. Additionally, the public health imperative to social distance by staying home as much as possible has highlighted the social importance of keeping everyone connected to essential services such as heat, power, and the internet. As it considers these issues, the Illinois Commerce Commission has requested significantly more data from utilities on debt, disconnection, and programs like deferred payment arrangements to help customers struggling to keep up with their bills.

While all major utilities have seen increases in debt this year, the stark differences between Peoples Gas and others highlights the severity and chronic nature of its affordability problems. For example, Peoples Gas customers with debt were collectively $146.5 million behind on their bills as of January 2021. That is $26 million more than ComEd customers, despite ComEd having roughly 2.9 million more residential customers.

The new data includes a comparison to the same month in 2020. Comparing the current year to last demonstrates that the Peoples Gas affordability problem is chronic and driven less by the pandemic than the affordability issues at the other utilities.

Interestingly, while all the four major utilities saw increases in total debt, they all also had less customers with debt in January 2021 than they did in January 2020. One theory is that relief programs, whether general federal stimulus or targeted utility affordability programs, have helped a certain number of customers pay off debt.

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Abe Scarr

State Director, Illinois PIRG; Energy and Utilities Program Director, PIRG

Abe Scarr is the director of Illinois PIRG and is the PIRG Energy and Utilities Program Director. He is a lead advocate in the Illinois Capitol and in the media for stronger consumer protections, utility accountability, and good government. In 2017, Abe led a coalition to pass legislation to implement automatic voter registration in Illinois, winning unanimous support in the Illinois General Assembly for the bill. He has co-authored multiple in-depth reports on Illinois utility policy and leads coalition campaigns to reform the Peoples Gas pipe replacement program. As PIRG's Energy and Utilities Program Director, Abe supports PIRG energy and utility campaigns across the country and leads the national Gas Stoves coalition. He also serves as a board member for the Consumer Federation of America. Abe lives in Chicago, where he enjoys biking, cooking and tending his garden.

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