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Illinois Public Interest Research Group filed expert witness
testimony detailing multiple fundamental errors in Peoples Gas’
methods of prioritizing risk reduction to protect public safety.
The testimony was among several filed by Illinois PIRG, the
Office of the Illinois Attorney General, the City of Chicago,
Gas Workers Local 18007 and the staff of the Illinois Commerce
Commission as part of an ICC investigation into the Peoples Gas
program to replace underground iron gas pipes, known as the
System Modernization Program.
The expert analysis sheds new light on why the plan, launched in
2011, has failed to accomplish its public safety objectives
despite Peoples Gas spending billions of dollars, leading to the
largest gas utility rate hike in Illinois history.
“They’ve had a track record for many years that they spent
billions of dollars but pipeline safety incidents have
increased, so we’ve known that something is wrong,” said
Illinois PIRG Director Abe Scarr.
Economist Jonathan Lesser and engineer Charles Feinstein
recommended a methodology, which would allow Peoples Gas to
optimize investment to reduce risk. They believe the
transparent, reproducible methodology can achieve greater risk
reductions while costing Chicagoans less.
Illinois PIRG wants the expensive program reigned in.
“Absolutely, yes, we are calling for an overhaul of the program
to cost less while making us safer and support the transition to
clean energy over time,” said Scarr.
Peoples Gas released the following statement.
“We appreciate the strong support from the ICC’s safety staff
and the Illinois Attorney General for continuing the critical
work of removing rapidly corroding pipes that date as far back
as the 1800s," the utility said. "These experts, along with
others who filed testimony, have made very clear the work is
needed for Chicagoans’ safety, for reliability in the heating
system, and for environmental sustainability.”
The state investigation into the modernization program will
continue until next January.
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