>> Another rate hike proposed by people's gas is sparking debate over affordable energy, the environment and the necessity of replacing old iron pipes in the city.

The utility company's current 144 million dollar proposed hike has received pushback, including from the Illinois Commerce Commission who directed the company to modernize its system but suggested bringing the proposal down to 66 million dollars.

Consumer advocates say that number should go even lower.

The ICC is set to make its final decision on the rate hike next month.

And joining us now is Maria Bocanegra, president of Peoples Gas and North Shore Gas.

Thank you for joining us.

Thank you for having So tell us about this proposed rate hike.

How how would it be used?

Yeah, well, first, let me start by saying this rate request is really about 3 things Brandis.

It is about safety reliability.

But importantly, responsibility.

As you may know, the ICC undertook a thorough investigation in 2025. and lifted the pause on what was now known as the system.

Modernization program.

What I want our customers to know tonight is that we have a new program before us and we've identified a little over 1000 miles of cast iron and ductile iron that need to be retired by the ICC's directive honor before January.

1st of 2035, I also want folks to know that under the new program there is a lot more rigor around a lot of our planning process is our construction practices.

But importantly, accountability and oversight.

So your current proposal 144 million dollars, which would amount to and extra $67 a month for consumers.

Bills.

How do you respond to those that say the work that you need to do is possible without raising rates for for rate payers.

Yeah, you know, I would question the underlying assumptions about that.

But I think I want to focus instead on I want to acknowledge that.

I understand we understand completely that even one dollar is difficult for a lot of families.

That's why part of our focus is also on addressing things around affordability, customer service and our financial programs are front and center for me as their new leader.

Just a couple of ways that we are looking and how to best minimize that we still low-income assistance programs, we participate and why lied.

We also offer bill payment options.

In addition, we are out in the community more than ever.

We recently partnered with the city Clerk's office to attend some of their mobile city hall so that we could push that information out.

So we're very cognizant that it's a careful balancing act between doing what is mandated under the ICC's directive.

But at the same time, always keeping customers front and center.

So 1000 miles, he said of pipe that needs to be replaced by 2035, is that your timeline?

Do you feel like you're going to make that deadline and does this proposal rate request lend itself to You know, well, what we know is that 1000 miles by 2035, is a significant undertaking.

I will pretend that it's not.

There is a lot of complexities, especially as you think about our construction and how we execute that in the right of way.

There's also workforce considerations we have had to revisit our forecast because labor is hard to come by.

Everybody's out building data centers.

And so whether it's labor need or back office need like engineers.

There's a lot of considerations that really will factor into our pace and the scope of the program.

ultimately over time.

What I can say, though, is that a lot of the changes that we've made under the pipe retirement program are designed to really look at not just retirement, but importantly, how are we actually reducing risk on our system as we look at each asset within these 1000 The ICC suggest a 54% reduction down to 66 million dollars.

Is that something you're considering?

Is that doable for you?

All?

Obviously we are confident that the evidence that we have put forth in our rate review is significant and is warranted with that said no matter the outcome, our safety obligation to maintain safe and reliable service.

It doesn't stop so any change potentially in scope or the pace of the program will have to re evaluate on a case-by-case basis and make decisions We had consumer advocates on the program.

They joined us just a few weeks ago to discuss this very topic, Jim Chill, son of Citizens Utility board had this to say about the pipe replacement program.

>> The company is under legal obligation to keep their their system safe.

They've got plenty of resources to do that.

This is a company whose parent made 1.6 billion dollars in profits.

Peoples gas this year is going for record profit for the 8th time in 10 years.

This company has plenty of resources.

By the way, company always says this is about maintaining their system.

They conveniently leave out the fact that they're asking for a 10.1% profit rate for their shareholders and they're rolling in profits.

respond to that criticism?

>> Yeah.

Let me take that in a couple pieces.

I would say in terms of resources.

You know, I just mentioned that.

What are the challenges to ramping back up is actually workforce availability.

There is a significant workforce shortage across the are a rate review request includes a labor market study that I believe demonstrates that need.

We worked closely with our labor partners in order to increase that labor availability.

In fact, we just signed a historic memorandum of understanding with our internal labor Union.

That creates new classification to increase that worker count.

We're also partnering with City colleges to expand some of our existing workforce programs with Wilbur Wright.

So that's in the workforce piece.

What I would also say in terms of some of the alleged profit.

I want to remind everybody that people's gas is a regulated utility.

We operate only in the city.

Chicago and we are regulated by the state of Illinois.

The cost that we have proposed forth are the cost of the investments mandated under the ICC and include a rate of return that is ultimately reviewed and set by the commission.

Any suggestion that this is nothing more than profit mongering is completely false.

And I would challenge that in terms of that robust process.

That is something where interveners like Cub and pardon others have ample opportunity to challenge our assumptions and ultimately it will be the commission that will decide that.

>> And then there's you know, of course, there's also the concern about affordability, according to the ICC as of September.

First this year, nearly 160,000 residential people's gas customers for more than 30 days behind on their bills, collectively the utility, 84 3 quarters of a million dollars.

You named all of the efforts that you all do with regards to affordability and supporting your lower-income customers, are consumers.

Are you concerned, though, that, you know, rate hikes could deepen that debt?

Yeah, absolutely.

Listen.

Even one customer that's behind on their bill is a concern for me and his concern for our company.

There's 2 responsibilities here.

First is making sure that customers feel supported and are supported through things like Bill payment assistance programs and other efforts.

We're always open to.

How can we increase that?

I mention the mobile city halls.

I can share another example.

One of our consumer advocates suggested that we include in simple press releases, you know, here's how folks can access financial assistance.

We did very, very open.

And the second thing is really balancing that, like I said against the necessary investments under the ICC's mandate.

And so we will