06/03/2026
Over the past month, Legal Action Chicago filed expert testimony, bringing on David Garett and Roger Colton, in three major Illinois utility rate cases involving Peoples Gas, North Shore Gas, Nicor Gas, and Illinois American Water. The testimony focused the true cost of equity for the utility companies and the affordability impact of rising payments for consumers.
All three of these companies are seeking increases in their Return on Equity (ROE).
ROE is essentially the profit rate that utility shareholders are allowed to earn through customer bills — and has significant impacts on the additional costs that customers have to pay.
People's Gas: Current is 9.38%, they proposed 10.10%
North Shore Gas: Current is 9.60%, they proposed 10.35%
Illinois American Water: Current is 9.84% and they proposed 10.75%
Collectively, these increases would cost Illinois consumers 10s of millions of dollars per year — money that would directly profit the companies without any direct benefit for consumers.
Our position is straightforward: Utilities should be allowed to earn a fair return. But "fair" does not mean maximizing shareholder profits. When authorized profits exceed what utilities actually need to raise capital and provide reliable services, shareholders take unnecessary wealth out of consumers’ pockets.
At a time when many Illinois families are struggling with utility affordability, regulators should ensure that rates reflect real costs, not inflated profit expectations.