ICC allows Peoples Gas to resume work—but with limits to control costs
Controversial Chicago pipe replacement program allowed to move forward
A controversial multi-billion program to replace Peoples Gas pipes in Chicago gets the green light to go forward.
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.