While watchdogs called on regulators to slash $137 million, or roughly two-thirds of the Peoples Gas request, the attorney general’s office went further, calling not only for the entire request to be rejected, but for the company to return $4 million to customers.

The settlement is intended to resolve concerns over excessive surcharges imposed on ratepayers under Peoples Gas’ pipe retirement program.

Peoples Gas is asking the Illinois Commerce Commission to approve a $202 million rate increase, while Nicor Gas is seeking its own rate hike of $221 million.

Consumer advocates expressed outrage with the move, calling on state regulators to reject the request, which comes only days after Peoples Gas filed for a $202 million rate hike on Monday.

The increase, which the company estimates will add $10-11 to monthly gas bills for typical residential customers in Chicago if approved by the ICC, comes three years after Peoples Gas received a $303 million rate hike in 2023, the largest in state history.

A review of the gas market in northern Illinois released by the consumer advocate groups Citizens Utility Board and Illinois PIRG highlighted that rising natural gas prices, in addition to rate hikes from gas utility companies, are creating a “double-whammy” for customers.

Instead of approving the full $314 million requested by Nicor and $129 million requested by Ameren, the ICC cut 47% and 43% from the requests, respectively.

Increasing energy prices are causing alarm among some consumer advocates and state policymakers, who worry that the long-term problems underlying the rising costs could lead to even higher prices or rolling blackouts.

Natural gas customers in the Chicago suburbs and downstate Illinois are likely to see an increase in their monthly bills next year, but it's up to state regulators to decide how big a hike, if any, to approve.

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. Thursday’s decision does not have an immediate effect on customers’ bills, according to state regulators.

The bill comes as several state officials warn that Illinois is falling behind on its clean energy goals. The state’s main funding mechanism for renewable energy projects also faces a potential $3 billion budget shortfall in the coming years.

The Illinois Commerce Commission on Thursday approved scaled-back plans submitted by Commonwealth Edison and Ameren Illinois, the electric utilities for northern and southern Illinois, respectively.

Following almost a year of legal battles and fierce public opposition, water utility Aqua Illinois is set to raise its rates in 2025. The privately owned water utility has not released an estimate of the exact impact the increase will have on customer bills in 14 northern Illinois counties.

Staying warm during Chicago’s frigid winters will get more expensive if Peoples Gas is permitted to resume its massive pipe replacement program, according to a report released Tuesday by the Citizens Utility Board, a consumer advocacy group.

New safety requirements for carbon dioxide pipelines as well as a temporary ban on their construction are now in effect after Gov. J.B. Pritzker signed a bill that passed the General Assembly earlier this year.

Illinois American Water, which serves 1.3 million people, is seeking a $152.4 million rate increase. Aqua Illinois, which serves 273,000 people, is seeking a $19.2 million increase. The requests must be reviewed by the Illinois Commerce Commission before the utilities are allowed to modify their rates.