Chicago gas bills could double if pipeline project continues: report – NBC Chicago

A report from consumer advocacy group Citizens Utility Board warned that a gas line project initiated by Peoples Gas could subject Chicago residents to record-breaking rate hikes in coming years.

The report claims finishing the project will now cost another $12.8 billion, far more than the company's initial projections.

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According to CUB, the project has caused a heating bill crisis across Chicago, with the average fixed monthly costs for Peoples Gas customers increasing significantly over the past decade.

The project, which aims to replace the utility's entire system of underground pipes across Chicago, began in 2013. Some of Peoples Gas' pipelines in the city date back as far as the 1800s.

Since the project began, the price tag has continued to increase, with Peoples Gas being accused of reckless spending that could leave customers on the hook in the long run.

The CUB report found that completion of the pipe replacement project would cause rate hikes of about 7% annually for 15 years, impacting the utilities of over 800,000 customers in Chicago.

According to CUB, those increases would show up on customer bills in the form of delivery charges, which could double from the current annual average of $1,206 to $2,424 by 2040.

"CUB's claims are false. Natural gas heating remains the most affordable way to stay safe and warm, by far. At the same time CUB is claiming to care about affordability, they fully support measures that would force Chicagoans to go 'all electric' - a move that would double or triple heating bills," a Peoples Gas spokesperson told NBC 5 Responds.

CUB's report claims that Peoples Gas will be unable to finish the gas line replacement project by 2040 as estimated - adding that customers would be picking up costs for the project for another 60 years after the work is supposed to be completed.

The Illinois Commerce Commission paused the gas line replacement project late last year, citing concern over increasing costs while launching an investigation into the program.

The final results of that review are expected to be released in 2025.

A spokesperson for Peoples Gas issued the following statement to NBC 5 Responds:

"We are focused on providing safe, reliable, environmentally sustainable heat to Chicagoans on the coldest winter days, and every day. Chicagoans' health and lives depend on it. CUB's decision to push claims from an out-of-state, anti-natural gas group - all outside the ICC's official ongoing review of our safety program - is remarkable and disappointing. They had an opportunity to participate in the ICC's open and pending docket that is taking a close look at the Peoples Gas Safety Modernization Program.

That is the appropriate forum to introduce the theories and information contained in this so-called "study." They did not take part. Now, instead of submitting this "report" to state regulators for objective examination, they're trying to avoid fact-checking. This so-called "study" completely ignores testimony that independent engineers and safety experts gave in front of state regulators - that there is an "urgent need" to continue replacing corroding pipes across Chicago that date back as far as the 1800s. CUB and their activist allies ignore the risks to people who live and work in Chicago."