Attorney General Kwame Raoul announced on April 30 that his office has reached settlements with Peoples Gas Light and Coke Company and North Shore Gas Company, which will provide $125 million in bill credits to more than one million utility customers in northeastern Illinois. The agreements are also expected to result in an estimated $350 million in long-term savings for consumers.
The settlements address concerns about costs related to Peoples Gas’ program to retire cast- and ductile-iron mains, previously known as the Accelerated Main Replacement Program. Customers had been paying these costs through a monthly Qualified Infrastructure Plant surcharge from 2017 through 2023, which at times reached up to $30 before being added into rates. The settlements also return charges related to the companies’ Uncollectible Expense Adjustment 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 some pipeline work costs charged through the QIP rider were not prudently incurred by Peoples Gas, including expenses for ineligible capital work, expired permits, and unsubstantiated change orders. Allegations also included that both companies did not keep arrearages under the UEA riders within manageable levels. Sarah Moskowitz, executive director of the Citizens Utility Board (CUB), said: “These bill credits are good news for Peoples Gas customers who have suffered so much financial pain because of the utility’s wasteful spending. 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.”
According to the official website, the Illinois Attorney General advocated for vulnerable groups including workers, immigrants and seniors. The office handled thousands of consumer complaints each year according to its official website. It aimed to protect consumers, promote safer communities and advocate for environmental issues as reported by its official website. Its advocacy extended across Illinois according to its official site, partnered with law enforcement agencies to support crime victims, and offered services such as complaint filing for consumer fraud or civil rights violations according to its official website.
If approved by the Illinois Commerce Commission, these settlements will provide annual bill credits over three years beginning in 2026—estimated at $50 per customer in 2026 followed by $40 each year in 2027 and 2028—and remove $130 million in capital costs from future bills as part of revised accountability measures.
