Peoples Gas Admit it withheld information; receives $3.5 Billion more but pays $18 Million fine.
If you have been downtown lately, you have noticed many roads ripped up with Peoples Gas trucks nearby.
This is part of what was a $4.5 Billion dollar pipeline replacement that has grown to $8.0 Billion.
Why is this relevant?
Peoples Gas was sold to Wisconsin based WEC group prior to the disclosure of this 100% cost overrun. DO you think Peoples was sold to WEC Group to continue a $4.5 Billion dollar project or a $8.0 Billion dollar project? The difference would generate about $350,000,000 (350 Million) each year in revenue for the next 25 years.
Again, Peoples Gas is a regulated monopoly. It has no competition to supply natural gas. So, it paid a fine of $18 million to receive $3.5 Billion more to spend.
Let’s see that’s less than 1% penalty.
Surely Peoples will learn their lesson not to withhold information from the regulators when they receive such a stiff penalty as that!
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