Chicago — Peoples Gas has filed a request with the Illinois Commerce Commission (ICC) to establish new rates starting in 2027. The filing reflects the mandate made last year by the ICC directing Peoples Gas to retire more than 1,000 miles of old iron pipes from Chicago’s heating system. The work is critical to ensuring ongoing safety and reliability in the system, especially during winter weather like last month’s extreme cold snap.
The ICC set an accelerated deadline for completing the large-scale, complicated construction. The new deadline is Jan. 1, 2035. The filing made by Peoples Gas also reflects the impact of inflation on all aspects of infrastructure work, similar to other sectors of the economy.
Peoples Gas works every day to keep bills as low as possible for customers, while ensuring that it delivers the reliable energy customers demand. The estimated customer impact of the filing — if approved by state regulators — would be $10 to $11 per month for the typical residential customer. Chicago home heating bills are currently below other major U.S. cities, and that is expected to continue with the new filing.
Peoples Gas’ planned work also will greatly enhance the environmental sustainability of Chicago’s heating system. It will help prevent leaks and set the stage for use of cleaner energy sources such as renewable natural gas and hydrogen.
The ICC’s review of the filing is expected to last up to 11 months.