Illinois gas customers to receive $125M in bill credits after settlement
Peoples Gas and North Shore Gas Company customers are likely to see minor credits on their bills for the next three years, thanks to a $125 million settlement agreement announced Thursday by Illinois Attorney General Kwame Raoul.
The benefit, if approved by the Illinois Commerce Commission, will average around $50 annually this year and around $40 each in 2027 and 2028, or about $3-4 monthly. Roughly a million natural gas customers in northeastern Illinois are expected to receive the credits.
"These bill credits are good news for Peoples Gas customers who have suffered so much financial pain because of the utility's wasteful spending," said Sarah Moskowitz, executive director of the Citizens Utility Board, a utility watchdog. "We look forward to continuing the important work ahead to hold Peoples Gas accountable and seek justice for its long-suffering customers."
The settlement stems from concerns raised by the attorney general and consumer advocates regarding the costs of Peoples Gas' ongoing pipe retirement program to retire over 1,000 miles of old iron pipes that carry natural gas underneath Chicago.
Raoul's office alleged that Peoples Gas imprudently incurred costs for the work, which are passed on to customers. According to a statement from the office, Peoples Gas customers paid an excessive surcharge for qualified infrastructure investments between 2017-2023.
As a result of the settlement, Peoples Gas also agreed to remove $130 million in capital investments. Since those costs are paid by consumers over time, it is expected to save customers over $350 million.
It also requires Peoples Gas to implement further accountability and transparency measures in its pipe retirement program, including competitive bidding for contracts over $25,000 and documenting and approving all cost changes greater than $5,000.
A statement from Peoples Gas and North Shore Gas said the companies appreciated the support of Raoul, his staff, the ICC staff and CUB for reaching the unanimous agreement.
"This settlement will provide our customers with lower bills and allow us to focus on the important job of serving Chicagoans with reliable and safe energy," the statement said.
