Chicago — As part of a filing being made today, Peoples Gas has adjusted the rate request it made with the Illinois Commerce Commission (ICC) earlier this year. The company has reduced its request by a total of $58 million.

With the new filing, Peoples Gas’ requested rate adjustment is $144 million, down from $202 million that was sought when the company filed its original request in January. This is a reduction of nearly 30%. The update is expected to reduce the impact on the typical customer’s bill by as much as $48 in 2027.

“Peoples Gas works every day to keep bills as low as possible for customers, while delivering the reliable energy Chicagoans need. This updated filing reflects that commitment,” said Maria Bocanegra, president — Peoples Gas.

The downward adjustment is due to four main factors:

  • The cost of recently completed infrastructure work was lower than forecast.
  • The timeline of certain infrastructure construction has been moved to later years.
  • Employee compensation tied to financial metrics has been removed from the rate request.
  • A reduction in rates is being provided to customers as part of a settlement made earlier this year with the ICC and stakeholders regarding costs incurred in earlier years, as far back as 2017. This is in addition to bill credits that will be provided to customers over the next three years as part of the settlement.

Why a rate request was made

Peoples Gas’ overall rate request reflects the mandate made last year by the ICC directing the company 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 harsh winter weather.

The ICC set an accelerated deadline for completing the large-scale, complicated construction. The deadline is Jan. 1, 2035. The request from Peoples Gas also reflects the impact of inflation on all aspects of infrastructure work, similar to other sectors of the economy.

The estimated bill impact of the rate request, including today’s cost reductions, would be $7 to $8 per month for the typical residential customer, if approved by state regulators. Chicago home heating bills are currently below those of other major U.S. cities, and that is expected to continue with the new filing.

For Chicagoans having a tough time making ends meet, financial assistance programs exist including local and federal grants, and permanent bill reductions of up to 83%. There also are programs for budget billing and extended payment plans, and free energy-efficiency consulting to help customers reduce their energy use and lower bills. Customers can find information about the programs on the Peoples Gas website or by calling the company’s Customer Care team at 866-556-6001.

An adjustment in rates, if approved, would take effect in late 2026 or early 2027. A decision by the ICC is expected by December.