Changes to Your Bill FAQs - Business
- How will the rate changes affect business customers?
- When did the new rates take effect?
- Why does Peoples Gas need this rate increase?
- Given the current state of the economy, what is the urgency?
- Why can't Peoples Gas postpone some of the infrastructure work?
- What steps have Peoples Gas taken to reduce costs prior to seeking this increase?
- How will the new rates benefit customers?
- What is the Infrastructure Cost Recovery rider (Rider ICR) and why do you need it?
- What is the Storage Credit for Transportation Customers?
- When was the last time the delivery rates changed?
- Does Peoples Gas anticipate another rate change?
- What types of energy efficiency programs are available to customers?
If your question is not answered here, or if you'd like more information, please contact us.
- How will the rate changes affect business customers?
- Some businesses may see a decrease in their natural gas delivery charges but most will see an increase. The amount will vary widely from business to business, depending on service classification and the amount of gas used.
- Why does Peoples Gas need this rate increase?
- Peoples Gas faces many of the same economic pressures as businesses all over the nation, such as the tighter credit markets and increased operating expenses.
We expect to use about three-quarters of the proposed rate increase to maintain and upgrade our 4,000-mile system of pipes and gas mains that deliver natural gas throughout our service territory. The remaining 25 percent would be used for rising costs such as employee health care expenses.
- Given the current state of the economy, what is the urgency?
- We understand it's never a good time for a rate increase and Peoples Gas sought this increase with a great deal of reluctance. But our previous rates were based on 2006 expenses while numerous factors continued to drive up our overall costs. Like any other company, we must be able to charge rates that reflect the actual cost of doing business today – not the cost of doing business four years earlier.
- Why can't Peoples Gas postpone some of the infrastructure work?
- Throughout its history, Peoples Gas has consistently invested in infrastructure to ensure the long-term safety and reliability of its system. But it also makes good business sense to upgrade our system because it's more affordable to make improvements now rather than emergency repairs later.
- What steps have Peoples Gas taken to reduce costs prior to seeking this increase?
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Like companies throughout the nation, Peoples Gas and North Shore Gas have taken steps to manage costs in recent years, including:
- A hiring freeze and staff reductions;
- Mandatory employee furloughs; and
- Administrative cutbacks throughout the company (Travel restrictions, reduced and eliminated use of outside consultants, etc.).
- How will the new rates benefit customers?
- These rate changes will allow us to maintain and upgrade our infrastructure efficiently in a way that enhances the system's safety and reliability.
- What is the Infrastructure Cost Recovery rider (Rider ICR) and why do you need it?
- These charges would recover the cost of replacing aging ductile and cast iron main piping in the Peoples Gas service territory. These charges will be included on the bills for Peoples Gas customers starting April 1, 2011.
- What is the Storage Credit for Transportation Customers?
- Peoples Gas incurs costs to store gas for future delivery to our customers. Costs for storage inventory are factored into our delivery charges. Customers in the Choices for You program purchase their gas from another supplier who stores gas on their behalf, and they will receive a credit to offset their portion of storage inventory.
- When was the last time the delivery rates changed?
- Our delivery rates changed in February 2008. Those rate changes were based on our costs in fiscal 2006. In other words, Peoples Gas is doing business today based on rates set using 2006 data, unadjusted for inflation.
- Does Peoples Gas anticipate another rate change?
- We cannot predict when we will need another rate change. Peoples Gas acts responsibly to manage its costs to provide safe and reliable service. We continually monitor our costs and seek rate changes only when necessary.
- What types of energy efficiency programs are available to customers?
- A new initiative called the Chicagoland Natural Gas Savings Program offers rebates to customers who make certain types of energy-saving upgrades to their homes or businesses. Customers can receive rebates of up to $750 for insulation, $600 for boilers, $450 for furnaces, and $400 for water heaters. You can find out more by calling 866-964-7345.