Peoples Gas customers to get bill credits in settlement over surchages from pipe-replacement program

As Chicago residents begin turning their heat back on for the winter months, those who warm their homes with natural gas from Peoples Gas will see some relief on their November bills.

Customers of the Chicago gas utility will see $56.18 in credits, thanks to a settlement the utility reached with the office of Attorney General Kwame Raoul this spring. The credits will be reflected through reductions on two line items on customer bills through Dec. 3, split roughly equally between the two sources.

Customers will also receive approximately $42 in credits in both 2027 and 2028 from the $125 million settlement.

“Every dollar customers save can make a meaningful difference, especially as the winter heating season begins,” Maria Bocanegra, president of Peoples Gas and North Shore Gas, said in a statement. “We remain committed to providing safe, reliable service and pursuing opportunities that deliver value for the customers we serve.”

The settlement stems from concerns raised by Raoul’s office and consumer advocates regarding the costs of Peoples Gas’ ongoing pipe retirement program, which is intended to retire over 1,000 miles of old iron pipes that carry natural gas underneath Chicago.

The attorney general’s office alleged Peoples Gas, in doing the work, imprudently incurred costs, which are passed onto customers. According to a statement from the office announcing the settlement, Peoples Gas customers paid an excessive surcharge for qualified infrastructure investments from 2017 through 2023.

As a result of the settlement, Peoples Gas also agreed to remove $130 million in capital investments. Since those costs are paid by consumers over time, it is expected to save customers over $350 million.T

It also requires Peoples Gas to implement further accountability and transparency measures in its pipe retirement program, including competitive bidding for contracts over $25,000 and documenting and approving all cost changes greater than $5,000.

“These bill credits are good news for Peoples Gas customers who have suffered so much financial pain because of the utility’s wasteful spending,” Citizens Utility Board Executive Director Sarah Moskowitz said in a statement following the settlement announcement.

Financial assistance programs are available for Peoples Gas customers struggling with energy bills, including local and federal grants and bill reductions up to 83%, according to the utility. More information can be found at https://www.peoplesgasdelivery.com/payment-bill/assistance or by calling 866-556-6001.