Who oversees a monopoly that is spending recklessly?
A utility is granted a monopoly to conduct its business for the benefit of the public. Without competition (and who would want more poles on the street or the road ripped more for more pipes), state regulators decide if the utility is spending money in the public interest; that is for improving the distribution of energy.
Peoples Gas estimated repairs to maintain its pipes at $4.5 Billion in just a year that number is now $8 BILLION.
This after a consultant was hired that reviewed Peoples work practice in the repairs and found them to be in disarray.
Recall, a utility monopoly earns profit by spending money; that is they earn a rate of return for borrowing money and investing it to perform its job. The regulators are charged with making sure we, the public, get its money worth.
In Illinois, the regulators overseeing utilities is called the Illinois Commerce Commission (ICC). Without diligence and competency by the ICC, Peoples Gas can waste money and still earn a profit without the residents receiving any benefit.
If there is no competition for service, we need a strong watchdog to ensure we get value for our investment.
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