Office of the
Illinois Attorney General
Kwame Raoul

Settlements to Provide Customers with $125 million in Bill Credits

Chicago – Attorney General Kwame Raoul today announced his office has secured settlements with Peoples Gas Light and Coke Company and North Shore Gas Company, which will include $125 million in bill credits to over 1 million utility customers in northeastern Illinois and provide an estimated $350 million in long-term savings related to Peoples Gas’ spending that consumers will not be charged for.

The settlements resolve issues raised by the Attorney General’s office on behalf of customers concerning costs related to Peoples Gas’ ongoing, massive program to retire cast- and ductile-iron mains, formerly known as the Accelerated Main Replacement Program. Ratepayers have been paying these excessive costs through a monthly Qualified Infrastructure Plant (QIP) surcharge from 2017 through 2023, which increased to up to $30 before the cost was added to rates. The settlements also return to ratepayers charges associated with Peoples Gas’ and North Shore’s Uncollectible Expense Adjustment (UEA) riders from 2019 through 2023.

“The settlements announced today will directly benefit natural gas customers of both Peoples Gas and North Shore,” Raoul said. “My office’s Public Utilities Bureau will continue to fight to ensure all customers are paying fair and reasonable rates for their utilities.”

The Attorney General’s office alleged that Peoples Gas did not prudently incur costs for the pipeline work that were charged to customers through its QIP rider, which included costs for ineligible capital work, expired permits and unsubstantiated change orders. The Attorney General’s office also alleged Peoples Gas and North Shore failed to keep arrearages through the UEA riders within manageable levels.

“These bill credits are good news for Peoples Gas customers who have suffered so much financial pain because of the utility’s wasteful spending,” said Sarah Moskowitz, executive director of the Citizens Utility Board (CUB). “We thank Illinois Attorney General Kwame Raoul for his efforts, and we look forward to continuing the important work ahead to hold Peoples Gas accountable and seek justice for its long-suffering customers.”

The settlements, which require approval by the Illinois Commerce Commission (ICC), will provide customers with a bill credit each year over a three-year period, beginning in 2026 and continuing through 2028. The $125 million in bill credits is a combination of a $75 million settlement related to Peoples Gas’ QIP rider and a $50 million settlement related to Peoples Gas’ and North Shore’s UEA riders.

As a result of the settlements, Peoples Gas customers will receive an estimated annual bill credit of approximately $50 in 2026, $40 in 2027 and $40 in 2028.

As part of the settlements, Peoples Gas has also agreed to remove $130 million in capital costs, which is estimated to save customers over $350 million, as customers pay for capital investments over time.

Peoples Gas also will implement accountability and transparency measures as part of its revised Pipe Retirement Program, an ongoing massive program to retire cast- and ductile-iron mains. The measures – developed by the Attorney General’s office – will require Peoples Gas to scope and competitively bid contracts in excess of $25,000, document and approve cost changes in excess of $5,000, and provide specific closeout information after a project is completed.

Bureau Chief Susan Satter, Deputy Bureau Chief Christopher J. Kim, Assistant Attorneys General Shelby Smith and Taso Tsiganos, and Senior Program Specialist Abigail Miner handled the case for Raoul’s Public Utilities Bureau.