Peoples Gas customers begin receiving bill credits under pipe-program settlement

Overview

Updated 1 hour ago

Chicago households that heat with Peoples Gas will see $56.18 knocked off their November bills. The credits come from a $125 million settlement between the utility and Illinois Attorney General Kwame Raoul over surcharges tied to its pipe-replacement program.

The settlement returns money that customers paid through a monthly surcharge from 2017 through 2023. It also removes $130 million in capital costs and requires competitive bidding for contracts over $25,000.

Why it matters

The credits return money from a pipe-replacement program whose costs have pushed Chicago heating bills higher for years.

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Key Indicators

$125M

Settlement total

Bill credits and cost reductions agreed by Peoples Gas and North Shore Gas.

$56.18

November credit per customer

One-time credit split across two line items through Dec. 3.

~1 million

Customers receiving credits

Natural gas customers in northeastern Illinois.

$350M

Estimated long-term savings

From removing $130 million in capital costs from customer charges.

$130M

Capital costs removed

Peoples Gas agreed not to charge customers for these costs.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Kwame Raoul

Illinois Attorney General

Announced and defended the settlement

Maria Bocanegra

President of Peoples Gas and North Shore Gas

Overseeing credit distribution and revised pipe program

Sarah Moskowitz

Executive Director, Citizens Utility Board

Supports settlement and continued oversight

Organizations Involved

Peoples Gas

Natural gas utility

Settling surcharge allegations and issuing credits

Chicago's natural gas utility and the main subject of the surcharge settlement.

North Shore Gas

Natural gas utility

Included in uncollectible expense portion of settlement

Suburban Chicago gas utility that shared the settlement over uncollectible expense charges.

Illinois Attorney General

State legal office

Brought surcharge allegations and negotiated settlement

Raoul's office brought the surcharge allegations and negotiated the settlement.

Illinois Commerce Commission

State regulatory agency

Oversees settlement approval and pipe-program review

The ICC must approve utility settlements and oversees the pipe program.

Citizens Utility Board

Consumer advocacy organization

Supports settlement and continued accountability

Watchdog group that has tracked Peoples Gas costs and supported the settlement.

Timeline

2013 November 2026

5 events Latest: Today

Tap a bar to jump to that date

November 2026
Peoples Gas customers receive $56.18 November bill credits
Today Consumer impact

Credits appear through Dec. 3, split across two line items; more credits are due in 2027 and 2028.
Today
April 2026
Raoul announces $125 million settlement with gas utilities
Settlement

The deal covers QIP and uncollectible expense surcharges and requires new contracting rules.
April 30th, 2026
2023
Illinois Commerce Commission pauses pipe program
Regulation

Regulators acted after concerns about rising costs and management of the program.
2023
2017
Customers begin paying QIP surcharge for pipe work
Surcharge

The monthly Qualified Infrastructure Plant charge ran through 2023 and reached up to $30.
2017
2013
Peoples Gas launches System Modernization Program
Program launch

The utility began a multi-decade project to replace cast- and ductile-iron pipes under Chicago.
2013

Scenarios

Credits continue through 2028 as scheduled

Likely Resolves by End of 2028

Discussed by: Illinois Attorney General's office and Peoples Gas

The settlement sets annual credits of about $42 in 2027 and 2028. If the Illinois Commerce Commission docket stays unchanged, customers receive those credits without a new filing.

Regulators order additional refunds or penalties

Possible Resolves by End of 2027

Discussed by: Citizens Utility Board and consumer advocates

CUB and the attorney general have said the settlement does not end their review of Peoples Gas spending. A new audit or cost review could produce another refund order.

Pipe-program costs trigger a new rate request

Possible Resolves by Q2 2027

Discussed by: CUB report and ICC proceedings

CUB's report warned that completing the pipe program could require repeated rate increases. If costs rise, Peoples Gas could seek a new rate or surcharge.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

2013

Peoples Gas System Modernization Program launch (2013)

Peoples Gas began replacing cast- and ductile-iron mains under Chicago. Cost estimates later rose from $2 billion to nearly $11 billion, according to CUB.

Then

The ICC paused the program in 2023 after cost concerns.

Now

The 2026 settlement removes $130 million in capital costs and adds bidding and cost-documentation rules.

Why this matters now

The settlement credits stem from surcharges customers paid for this program.

2017-2023

Qualified Infrastructure Plant surcharge (2017-2023)

Customers paid a monthly QIP surcharge for pipe work. The attorney general alleged the utility charged for ineligible capital work, expired permits and unsubstantiated change orders.

Then

The settlement returns $75 million related to the QIP rider.

Now

Peoples Gas customers receive credits through 2028.

Why this matters now

The November credits are the first payment from that settlement.

2023

Illinois Commerce Commission pauses pipe program (2023)

The ICC paused the System Modernization Program and opened an investigation. Consumer advocates had warned that costs were rising faster than projected.

Then

The review led to the 2026 settlement.

Now

The program now operates under new contracting and transparency requirements.

Why this matters now

The settlement is the regulatory result of that investigation.