Peoples Gas exec, consumer groups address rates, pipe replacement
[May 06, 2025]
By Jim Talamonti | The Center Square
(The Center Square) – Peoples Gas customers in Illinois could be in for
higher bills as the utility moves to replace aging pipes and the city of
Chicago moves toward electricity.
The Chicago City Council Committee on Environmental Protection and
Energy met Monday to discuss the Illinois Commerce Commission’s move to
allow Peoples to restart its pipe replacement program. The ICC ordered a
pause of the program in 2023 when cost estimates ballooned from $1
billion to $11 billion.
In February, the ICC ruled that Peoples could continue pipe replacement
with a limited scope. Instead of replacing the entire system, the ICC
said the utility could retire at-risk gas pipes with an acute safety
risk by 2035.
Peoples Gas President Maria Bocanegra said Chicago’s natural gas system
is one of the oldest in the country and more than 1,100 miles of pipe
would need to be replaced. Bocanegra did not rule out a potential rate
hike to deal with the costs.
“Are we receiving enough revenue to be able to execute at whatever level
and those amount of miles that might be necessary? I don’t want to
discount the possibility of us having to go in to the ICC for their
review and their opinion on what exactly a rate increase might look
like,” Bocanegra said.
Chicago Alderman David Moore asked Bocanegra if the city’s move away
from gas to electricity would cause gas customers to pay more. Both city
and state politicians have made various proposals aimed at banning
natural gas.
“The answer is yes. We believe that there is a financial impact to those
ratepayers, to their detriment,” Bocanegra answered.
Citizens Utility Board Executive Director Sarah Moskowitz said Peoples
earned $224 million in profits last year after ushering in a record rate
hike in January 2024.
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Moskowitz said Peoples guessed wrong about gas commodities prices
and expressed CUB’s concern about a 116% increase in Peoples’ supply
price this month.
“Gas prices are rising again, which means Peoples Gas customers are
getting squeezed now on both ends of their heating bills, paying
more for Peoples to both acquire and deliver fuel to their homes,”
Moskowitz said.
Moskowitz told the committee that customers owed a collective $94
million in debt to the utility, including unpaid bills and late
fees.
Illinois Public Interest Research Group Director Abe Scarr said
Peoples could more cost-effectively mitigate safety risks by lining
pipes or using advanced repair methods instead of replacing pipes.
“These strategies have many potential benefits, including the
potential to be much less expensive,” Scarr said.
Alderman Raymond Lopez noted that the state’s ICC paused the pipe
replacement program.
“Two years worth of bickering, posturing and politicizing and we
came back to the same conclusion: Get back to work. But now we have
to do it 10 times faster, excuse me, a hundred times faster,” Lopez
said.
Lopez also took aim at the ICC over rate hikes.
“As they are talking about rate increases and they are talking about
the impact on consumers, they didn’t bat an eye in 2024, adding a
$624 increase on businesses without any kind of impact study or to
see what that’s going to do to the mom-and-pop businesses throughout
the entire city of Chicago,” Lopez said.
Greg Bishop and Kevin Bessler contributed to this
story. |
