CHICAGO (WTAQ) – The parent firm of We Energies expects to resolve a management controversy involving a Chicago utility that’s part of a planned mega-merger.
Wisconsin Energy is in the process of acquiring the Integrys Energy Group of Chicago — and Peoples Gas is part of that group.
The Illinois Citizens Utility Board and the state’s Justice Department is raising questions about rising cost estimates to replace Chicago’s natural gas mains. It’s now at $4.6 billion.
Media reports say anonymous whistleblowers exposed mismanagement at Peoples Gas. Wisconsin Energy tells Illinois regulators it plans to address the matter by having at least 3 of its leaders be a part of the top management of the gas utility — and they’ll report to Wisconsin Energy CEO Gale Klappa.
Spokesman Barry McNulty said improvements must occur in the gas-main replacement program, and some steps are already being taken. He said Wisconsin Energy has had positive experience in those kinds of efforts.
The firm is working with regulators in 4 states on its proposed acquisition of Integrys. In Upper Michigan, the firm dropped plans to sell a power plant to try and resolve issues there.
(Story courtesy of Wheeler News Service)