Report: Gas bills could double within 15 years if Illinois regulators don't intervene

A new report says gas bills for many Illinoisans could skyrocket unless state regulators intervene in a pipe replacement program

Peoples Gas and its System Modernization Program has been under fire for cost overruns and delays. The Illinois Commerce Commission paused most spending on the program pending a state investigation.

The nonprofit Citizens Utility Board has released a report that says the cost of Peoples Gas’ program has climbed to nearly $11 billion, far beyond the original $2 billion estimate. Jim Chilsen, CUB director of communications, said if the program isn’t overhauled, there will be rounds of record-breaking rate hikes for 15 years.

“That would double the annual charges for the average customer from about $1,200 to $2,400 by 2040,” said Chilsen.

Peoples customers would continue to incur charges associated with the pipe-replacement program for another 75 years after the utility currently estimates it will finish revamping its system of gas mains, according to the report.

Abe Scarr, state director of the consumer watchdog Illinois Public Interest Research Group, said there is no transparency with Peoples’ pipe replacement program.

“Peoples Gas will not even commit to ensuring that its billions of dollars of spending going forward is cost effective, and that’s just absurd,” said Scarr. “A utility should always be able to demonstrate that the benefits of their investments are greater than the costs.”

In a statement to The Center Square, a Peoples Gas spokesman said CUB’s claims are false, saying in part: “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.”

The Illinois Commerce Commission expects to wrap up an investigation into the program in January.