A Peoples Gas pipe replacement program, which could have doubled gas bills, can continue Thursday after the Illinois Commerce Commission (ICC) wrapped up a year-long investigation into the project. However, the ICC ordered more oversight on the program.
In 2023, the ICC paused the replacement program to investigate spending, delays and safety risk priorities.
The program is designed to replace nearly 2,000 miles of natural gas pipes in Chicago, some of which have been there since the 1800s.
"The record in this investigation shows Peoples Gas was not prioritizing the removal of CIDI pipes, but rather pursued it as a component of its system modernization program. As a result the retirement rates slowed over time," said ICC Commissioner Stacey Paradis.
The ICC wants Peoples Gas to change its approach by focusing first on replacing the pipes, not making additional improvements to the system.
Consumer advocates call the decision a win.
"What we saw today was the regulators deciding to regulate," said Sarah Moskowitz of the Citizens Utility Board.
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"We do believe as a result of this order we should get a program that costs less and leads to less aggressive rate hikes." said Abe Scarr, the director of the Illinois Public Interest Research Group.
Thursday's ICC decision won't have an immediate impact on bills, although consumer advocates say any improvement project will cause prices to go up. However they believe the decision will curb spending and create checks on Peoples Gas.
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Peoples Gas released a statement to NBC 5 saying, "For more than a decade we worked to replace old, leaky pipes in a systematic way that improves the safety and reliability of Chicago’s heating system. The Commission paused that work at the end of 2023, and has now lifted the pause. As we wait to receive the full Final Order and review it, the Commission made clear it wants us to focus on replacing more than 1,000 miles of pipes by 2035. This direction given by the Commission, compared to the prior approach, may necessitate additional cost and more construction sites disrupting streets across city neighborhoods."
