Peoples Gas line replacement project could mean record-breaking rate hikes for 15 years
Peoples Gas customers could find out as soon as Thursday if their gas bills will go up even more, as the utility company wants state approval on a project that would replace all the gas lines around the city.
This week, Chicagoans saw the coldest winter weather of the season so far, which was likely to have impacted consumers' gas bills. But so could the nearly $13 billion proposal for gas line replacement — which could have Chicagoans seeing record-breaking increases for the next 15 years.
Peoples Gas customer Matt Thurn said his gas bill has skyrocketed, and he's not alone.
"No one is getting an explanation, no," he said.
Thurn said he is beyond annoyed.
"Extremely frustrated, and we're not getting any answers from Peoples Gas," he said.
Bills are more than doubling in some cases. One customer paid $140.03 to Peoples Gas this month, compared with $62.60 in February 2024.
It was a similar story in December — with a bill for $60.77 in December 2023, and $118.69 in December 2024.
Across the whole year, from January 2024 through February 2025, the last three months showed steep increase in the customer's gas bills.
"More and more Chicagoans have been facing real affordability crises here when it comes to heating," said Sarah Moskowitz of the Citizens Utility Board, a nonprofit that fights rate hikes.
Moskowitz said with bills already high, if the Illinois Commerce Commission approves a project that replaces Peoples Gas' entire system of underground gas mains in the city, the rates could be catastrophic.
"We're just trying to kind of put the brakes on here," Moskowitz said.
Beneath Chicago streets, there are nearly 2,000 miles of old pipes — some of which date back to the 19th century. Peoples Gas said the deteriorating natural gas pipes pose safety risks like gas leaks and explosions.
The Peoples Gas Safety Modernization Program would replace the pipes.
Last year, the Illinois Commerce Commission paused the project, and started an investigation to see if the investment is even needed.
"The utility has failed to show how their method of blanket investment across the board is really benefiting the system safety and reliability," said Moskowitz.
Peoples Gas sent CBS News Chicago a statement reading:
"The Peoples Gas heating system is critical to Chicagoans, especially during bitter cold winters like we are experiencing right now. Safety experts and two independent judges determined our plan to update pipes from as far back as the 1800's is urgently needed and the least expensive approach. We would like the opportunity to get restarted on this work."
Moskowitz said if the project must go on, Peoples Gas should replace only in certain areas.
"The most prudent way to do that is to replace any of the pipes that need repair," she said, "not to just indiscriminately replace the whole system."
Peoples Gas did get a $300 million rate hike approved in 2023. This was the largest rate hike in Illinois history.
The current investigation paused that spending and the project.
If the project is approved, it remains unclear when customers would start seeing their bills go up.
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