Watchdog groups raise concerns over Peoples Gas pipeline replacement costs
CHICAGO - The Illinois Public Interest Research Group and the Citizens Utility Board are calling for reforms to Peoples Gas pipeline replacement program, highlighting significant cost increases.
What We Know
Originally estimated at $1 billion, the program’s costs have now grown to $12.8 billion, according to the groups.
These rising costs were a key factor behind the Illinois Commerce Commission’s (ICC) approval of a record $305 million rate hike in November 2023, the watchdog groups say.
In response, People’s Gas issued a statement defending the program, emphasizing the age and condition of Chicago’s gas pipeline system, much of which dates back to the 1800s. The company pointed out that independent safety experts and two judges have recommended the work continue, calling the upgrades "critical" for public safety.
People’s Gas also claimed that the watchdog groups’ proposals to alter the program would add $5.5 billion in additional costs while neglecting essential safety updates.
Peoples Gas Response
The full statement from Peoples Gas can be found below:
"Chicagoans need a safe and reliable heating system, especially on frigid days like today. The current system beneath Chicago dates back to the 1800's. Independent experts agree it needs updating. Safety engineers and two judges are urging state regulators to let this critical work continue. Political activists with extreme agendas are out of touch with reality and telling people to ignore the facts. Their approach would add $5.5 billion in costs, and ignores crucial safety needs."
The Source: Information in this article was obtained by the Illinois Public Interest Research Group, Citizens Utility Board and People's Gas.