Peoples Gas Cuts Rate Request, Defers Some Pipeline Replacement Work

Peoples Gas has reduced its Illinois rate request by nearly 30%, citing lower infrastructure costs, revised construction schedules and other changes ahead of an ICC decision later this year.

(P&GJ) — Peoples Gas has reduced its pending Illinois rate request by $58 million, lowering its proposed increase to $144 million from the $202 million filed earlier this year as the utility revises infrastructure costs and construction plans.

The revised request, filed July 14 with the Illinois Commerce Commission (ICC), represents a reduction of nearly 30%. If approved, the company said the changes would lower the impact on a typical residential customer's bill by as much as $48 in 2027.

According to Peoples Gas, the revised filing reflects lower-than-expected costs for recently completed infrastructure work, delayed construction on certain projects, the removal of employee compensation tied to financial performance from the rate request and customer credits resulting from a previously approved settlement covering costs dating back to 2017.

"This updated filing reflects our commitment to keep bills as low as possible for customers while delivering the reliable energy Chicagoans need," said Maria Bocanegra, president of Peoples Gas.

The utility said the rate request continues to support its accelerated Pipe Retirement Program, which is replacing more than 1,000 miles of aging cast-iron gas mains across Chicago under a schedule established by the ICC.

The commission directed Peoples Gas to complete the work by Jan. 1, 2035. The utility said the filing also reflects inflationary pressures affecting pipeline replacement and other infrastructure projects.

If approved, the revised request would increase bills for a typical residential customer by an estimated $7 to $8 per month beginning in late 2026 or early 2027.

The ICC is expected to issue a decision on the rate case by December.