CHICAGO (AP) -- Action taken Tuesday by the Illinois Commerce Commission will mean customers of Peoples Gas will be hit with a 4 percent to 5 percent rate increase that critics say will penalize consumers who conserve energy.

Integrys Energy Group Inc. asked for the $71 million distribution rate increase, which the ICC approved unanimously. It will translate into about a $7 a month increase on the average bill.

Attorney General Lisa Madigan opposed the rate increase, saying it would impose surcharges on customers for the delivery of gas they do not use. She argues the rate increase means utilities would earn extra profits, especially when customers use less gas.

Peoples Gas sought the rate increase and a provision allowing the utilities to charge customers a new preset fee for gas delivery regardless of amount of use in order to offset conservation efforts that have cut into revenues.

(Copyright ©2008 by The Associated Press. All Rights Reserved.)