Politics

Peoples Gas Required to Complete Pipe Replacement Program by 2035, State Regulators Say

Peoples Gas, Chicago’s gas utility company, can continue work on replacing old gas pipes, but must prioritize high-risk pipes and finish the work in 10 years, according to a decision issued Thursday by state regulators.

The gas utility company’s pipe replacement program had been on hold for over a year so the Illinois Commerce Commission could determine how to move forward with the program, which has been years behind schedule and billions of dollars over budget.

“To be clear, the ICC’s decision is not a green light for Peoples’ Gas to return to business as usual,” said Acting ICC Chairman Doug Scott in a news release. “It is Peoples’ and any utility’s responsibility to safely maintain the infrastructure needed to run its system. However, these projects cannot come at unreasonable or unjustifiable costs to customers.”

Thursday’s decision does not have an immediate effect on customers’ bills, according to state regulators. In addition to giving a 10-year deadline, the decision also called for the creation of a safety monitor to file annual reports and track the company’s progress.

The ICC said it has notified Peoples Gas of potential financial penalties for failing to comply with the new directives.

According to a statement from Peoples Gas, the ICC decision “made clear” that it wants the company to focus on replacing more than 1,000 miles of pipes by 2035.

“This direction given by the Commission, compared to the prior approach, may necessitate additional cost and more construction sites disrupting streets across city neighborhoods,” according to a Peoples Gas statement.

Last year, the consumer advocacy group Citizens Utility Board released a report that the pipe replacement program could lead to consumers seeing their gas bills double by the year 2040. The utility company denounced the findings as riddled with false claims that ignore risks to Chicago residents.

Citizens Utility Board Executive Director Sarah Moskowitz said Thursday’s decision is a step in the right direction. The ultimate impact the decision will have on people’s pockets is yet to be seen, according to Moskowitz, who runs the nonprofit set up by the General Assembly to advocate for utility customers.

“The status quo is unaffordable and it’s great to see the commission come down and make clear that the utility can’t just raise its customers’ costs willy-nilly without justification,” Moskowitz said.

WTTW News reporter Amanda Vinicky contributed to this report.

Contact Eunice Alpasan: @eunicealpasan | 773-509-5362 | [email protected]

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