People's Gas has dropped a hefty new request on Chicago, and plenty of people are not taking it quietly. The utility is asking state regulators for roughly $202 million in additional delivery revenue, a move that could add about $10 to $11 to the average residential customer's monthly bill if it gets the green light. Consumer groups and environmental activists gathered outside the company’s downtown offices this week to blast the proposal and demand regulators say no.
People's Gas formally filed the $202.3 million request with the Illinois Commerce Commission on Monday, according to WTTW. The utility estimates the plan would tack about $10 to $11 onto a typical residential bill if the ICC approves it, per reporting from NBC Chicago. In its filing, the company said the added revenue is meant to meet an ICC directive to retire more than 1,000 miles of aging iron pipe and to position the gas system for cleaner fuels, an explanation reported by the Sun-Times.
Consumer advocates called the proposal “unconscionable” and staged a demonstration at the utility’s downtown office, according to a statement from the Citizens Utility Board. Groups, including Illinois PIRG, said they plan to fight the increase throughout the regulatory case, and PIRG director Abe Scarr talked about options such as relining pipes instead of replacing them on Fox 32 Chicago.
Company: Safety, Pipe Retirement and Cleaner Fuels
Peoples Gas is framing the request as a safety and reliability issue. The company says it needs the rate hike to finish its iron-pipe replacement work and keep service dependable, according to statements reported by the Sun-Times. Executives also point to higher construction costs driven by inflation and argue the upgrades will help prevent leaks and prepare the system to handle renewable natural gas and hydrogen.
Advocates: Relining, Not Replacement
Illinois PIRG and other consumer and environmental advocates are urging regulators to look at cheaper alternatives. They want the ICC to consider relining existing mains instead of fully replacing them, and PIRG Director Abe Scarr told regulators that relining can extend pipe life at a lower cost, as reported by WGLT. Critics also highlight that Peoples Gas is asking to raise its allowed return on equity to about 10.1% from the 9.38% level approved in 2023, a detail documented by WTTW.
What It Could Do to Your Bill
The estimated $10 to $11 monthly bump would add roughly $120 to $132 a year for a typical household, according to NBC Chicago. Consumer advocates warn the timing could not be worse. Supply charges have already climbed sharply this winter, and delivery increases hit every customer, even those who buy gas from third-party suppliers, the Citizens Utility Board noted.
What Happens Next
The Illinois Commerce Commission typically takes about 11 months to review base-rate filings and lets consumer groups and other intervenors submit expert testimony and evidence, according to WGLT. In recent cases, the ICC cut Ameren’s and Nicor’s requested increases by roughly 40%, a reminder that regulators do scrutinize whether specific projects and costs are reasonable, the Journal-Courier reported.
Advocates say they will use the ICC docket to push for alternative approaches and to challenge the company’s numbers, according to NPR Illinois. Customers worried about rising gas bills can look into state and federal help, including the LIHEAP program. Illinois’ state assistance page lists an energy-assistance hotline at 1-877-411-9276.
