Record #: SR2018-837   
Type: Resolution Status: Failed to Pass
Intro date: 7/25/2018 Current Controlling Legislative Body: Committee on Committees, Rules and Ethics
Final action:
Title: Call for hearing(s) on differences in monthly natural gas costs for Chicago versus suburban households
Sponsors: Cardenas, George A., Burnett, Jr., Walter, Waguespack, Scott, Santiago, Milagros, Sposato, Nicholas, Maldonado, Roberto, Moore, Joseph, Cappleman, James, Arena, John, Tunney, Thomas, Moore, David H., Curtis, Derrick G., Tabares, Silvana, Solis, Daniel, Mell, Deborah, Dowell, Pat, King, Sophia D., Pawar, Ameya, Mitts, Emma, Moreno, Proco Joe, Hopkins, Brian , O'Connor, Patrick, Harris, Michelle A., Sawyer, Roderick T., Ramirez-Rosa, Carlos, Villegas, Gilbert
Topic: COMMITTEE/PUBLIC HEARINGS - Committee on Committees, Rule and Ethics
Attachments: 1. SR2018-837.pdf, 2. R2018-837.pdf
Related files: R2019-362
Committee on Health and Environmental Protection


WHEREAS, The Peoples Gas Light and Coke Company (Peoples Gas) is an Illinois corporation engaged in the transportation, purchase, storage, distribution, and sale of gas to the public in Illinois; and

WHEREAS, Peoples Gas is a subsidiary of Milwaukee, Wisconsin based WEC Energy Group, Inc.; and

WHEREAS, Peoples Gas serves more than 873,000 Chicagoans, and has delivered gas to residential and business customers for over 165 years; and

WHEREAS, in 1981 an engineering study commissioned by Peoples Gas recommended replacing a subset of at risk gas mains of certain materials by 2030; and

WHEREAS, a follow-up 1993 engineering study recommended expanding the target for replacement to include all cast and ductile iron mains, and moving the target end date for replacement to 2050; and

WHEREAS, beginning in 2007, Peoples Gas sought regulatory approval to accelerate pipe replacement through a special cost recovery mechanism, or "rider"; and

WHEREAS, in 2013, the Illinois General Assembly authorized Peoples Gas and other gas distribution utilities to use this mechanism, a rider for Qualified Infrastructure Plant, or "Rider QIP"; and

WHEREAS, Peoples Gas' accelerated pipe replacement has taken various forms and names, including Accelerated Main Replacement Program (AMRP) and System Modernization Program (SMP); and

WHEREAS; under the direction ofthe ICC, Liberty Consulting Group performed an outside audit ofthe AMRP, presenting its Phase One final report to the ICC in May 2015; and

WHEREAS, the Phase One final report states "Liberty's year-long investigation disclosed a lack of management expression or understanding of: (a) likely overall program costs, (b) likely program duration relative to targeted completion of leak-prone pipe replacement by 2030, and (c) the reasons why leak rates have not fallen significantly after four years of accelerated replacement of cast iron and ductile iron mains."; an...

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