As the December bills for natural gas use hit the home front,city and state officials in Illinois, one of the hardest hit lastmonth, weatherwise, reacted with measures to increase low incomeassistance and investigate the cause of the high prices.

The Illinois legislature voted yesterday to expand eligibilityrequirements, allowing an additional 47,000 families in the stateto apply for the Low Income Home Energy Assistance Program(LIHEAP). The legislative action extends the LIHEAP program tofamilies with incomes of less than 150% of the poverty level, or$25,575, up from the previous 125% or $21,312 limit. The 150% isthe maximum allowed under the federal-state program.

Chicago and suburban mayors, who gathered Monday to supportextension of the assistance program, also called on the IllinoisCommerce Commission (ICC) to initiate an emergency rulemaking toinvestigate natural gas pricing by the state’s gas companies. Theaction follows on the creation by Illinois Gov. George H. Ryan ofthe state’s first ever Energy Cabinet last week, and his call for agas price investigation.

“Recent developments and volatility in the energy marketexperienced by the citizens of this state and nationallydemonstrate an immediate need to create a framework for handlingenergy-related issues in the most effective manner.” Ryan stated.The energy cabinet will be co-chaired by the governor’s senioradvisor on environment and natural resources and senior advisor onregulatory affairs and will be comprised of key members in Ryan’scabinet.

“I call on the ICC to complete a full investigation of therecent natural gas price increases. Although, to date, natural gasutilities have been cooperative, we need assurances that Illinoisconsumers are not being taken advantage of,” the governor said.

The focus on natural gas prices by the mayors’ coalition isbeing led by Chicago’s environmental office, which contendsdistributor Peoples Gas acted imprudently in failing to hedge. Thedistributor “has the tools to hedge, but it did not,” a spokesmanfor the environmental office said. Peoples rates to residentialscurrently are $9.70 MMBtu. “While industrial customers locked inpurchases last summer, the city did not. They should have seen thiscoming and done something similar.” The city will pursue itschallenge in the annual rate review coming up in the spring. Partof that challenge will include whether the diversified businessesof parent, Peoples Energy, which has an E&P subsidiary,conflicts with its role as a utility.

©Copyright 2001 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.