Peoples Gas exec, consumer groups address rates, pipe replacement (via The Center Square) – Peoples Gas customers in Illinois could be in for higher bills as the utility moves to replace aging pipes and the city of Chicago moves toward electricity.
The Chicago City Council Committee on Environmental Protection and Energy met Monday to discuss the Illinois Commerce Commission’s move to allow Peoples to restart its pipe replacement program. The ICC ordered a pause of the program in 2023 when cost estimates ballooned from $1 billion to $11 billion.
In February, the ICC ruled that Peoples could continue pipe replacement with a limited scope. Instead of replacing the entire system, the ICC said the utility could retire at-risk gas pipes with an acute safety risk by 2035.
Peoples Gas President Maria Bocanegra said Chicago’s natural gas system is one of the oldest in the country and more than 1,100 miles of pipe would need to be replaced. Bocanegra did not rule out a potential rate hike to deal with the costs.
“Are we receiving enough revenue to be able to execute at whatever level and those amount of miles that might be necessary? I don’t want to discount the possibility of us having to go in to the ICC for their review and their opinion on what exactly a rate increase might look like,” Bocanegra said.
Chicago Alderman David Moore asked Bocanegra if the city’s move away from gas to electricity would cause gas customers to pay more. Both city and state politicians have made various proposals aimed at banning natural gas.
“The answer is yes. We believe that there is a financial impact to those ratepayers, to their detriment,” Bocanegra answered.
Peoples Gas exec, consumer groups address rates, pipe replacement
