21-02-2025
ICC allows Peoples Gas to resume work—but with limits to control costs
The Brief
Peoples Gas can resume work on its gas main replacement program after the Illinois Commerce Commission (ICC) lifted a 2023 pause, but the company must now focus only on the oldest and most at-risk pipes.
Consumer advocates warn of ongoing rate hikes, as the project's estimated cost has surged from $1.4 billion to nearly $13 billion, with Chicago residents bearing the financial burden.
The ICC will appoint a monitor to ensure Peoples Gas follows the ruling, including exploring alternatives to full pipe replacements to prevent leaks.
CHICAGO - The Illinois Commerce Commission ruled Thursday that Peoples Gas can resume work on its yearslong program to replace aging gas main lines beneath neighborhood streets.
The program had been paused in 2023 following criticism over its rising costs.
What we know
Under the ruling, Peoples Gas must scale back the project and focus only on replacing the oldest and most at-risk pipes.
"Chicagoans deserve a safe and reliability gas system," ICC Commissioner Stacy Paradis said. "Today's decision focuses the companies efforts to ensure the company remains safe. It's now on People's Gas to change its approach."
The ruling follows years of opposition from consumer groups who have fought the nearly decade-long project. Originally estimated at $1.4 billion, the projected cost has now ballooned to nearly $13 billion, with Chicago residents footing the bill through higher gas rates.
"We just had a record-breaking $300 million rate hike, and if the program had continued as planned, we'd see record hikes every few years," said Abe Scarr, director of the consumer watchdog group Illinois PIRG.
What they're saying
Scarr has long criticized the main replacement program as bloated and over budget. He said Thursday's ruling should provide some relief for ratepayers.
"We're still going to see rate hikes—it's important for people to understand that," Scarr said. "There are still going to be increased costs, but hopefully, they're much more moderate."
The program aims to replace old, rusted pipes with yellow polyethylene tubing.
Meanwhile, a Peoples Gas spokesperson argued that the ruling could lead to higher costs and more disruptions.
"The commission made clear it wants us to focus on replacing more than 1,000 miles of pipes by 2035," the spokesperson said. "This direction given by the Commission, compared to the prior approach, may necessitate additional cost and more construction sites disrupting streets across city neighborhoods."
What's next
The ICC announced that it will appoint a monitor to make sure Peoples Gas is following through on the ruling and even using methods other than replacement to make sure the pipes don't leak.
