Peoples Gas has scaled back the size of the rate increase it wants from state regulators, but Chicago customers may still see higher natural gas bills.
Even after the reduction, the proposal could raise a typical household's monthly charge by about $7 to $8.
What happened?
Peoples Gas said Tuesday that it no longer plans to pursue the full $202 million increase it requested in January.
As Capitol News Illinois reported, the company lowered that ask by $58 million, bringing the total to $144 million.
For a typical residential customer, the revised filing would mean an added monthly cost of about $7 to $8 instead of the roughly $10 to $11 first proposed, if the Illinois Commerce Commission approves it in December. The new rates would likely begin in late 2026 or early 2027.
Peoples Gas President Maria Bocanegra said, "Peoples Gas works every day to keep bills as low as possible for customers, while delivering the reliable energy Chicagoans need. This updated filing reflects that commitment."
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The company, which serves more than 898,000 customers in Chicago, said the lower request reflects lower-than-expected costs for recent infrastructure work and delays to some planned construction.
Consumer advocates said the company's revised request is still too large.
"It's ridiculous for Peoples Gas to seek a pat on the back for this reduction when it's still seeking to get a huge rate hike and take money from customers in a time when the cost of living is soaring," Citizens Utility Board spokesperson Jim Chilsen said.
Why does it matter?
Even a smaller utility increase can add financial pressure for families already coping with high housing, food, and energy costs. And because Peoples Gas serves nearly 900,000 customers across Chicago, the case could affect a large share of the city.
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The debate also extends beyond a single monthly bill. Peoples Gas has been directed to phase out 1,020 miles of gas pipe under Chicago streets by 2034, but critics have questioned whether the company can complete that work on time and at a reasonable cost after years of controversy over its earlier modernization plan.
More broadly, the fossil fuel industry harms people and communities through both pollution and cost.
What's being done?
Peoples Gas said updated forecasts changed the calculations for its construction program. The company had projected it would remove roughly 35 miles of older iron pipe this year, but it now expects retirements of about 14 miles this year and 47 next year, a shift tied to updated schedules, costs, and workforce availability.
According to testimony filed by Peoples Gas, data centers have been competing for the same skilled workers and offering "premium wages" to attract and keep them. The revised filing also removed a $14.9 million ask for employee compensation linked to the company's financial performance and included a rate reduction negotiated with the Illinois attorney general's office.
Consumer advocates said additional cuts may still be possible as the review continues.
Abe Scarr, director of Illinois PIRG, said, "From my perspective, it's an acknowledgement that they can't justify the full initial rate case, and I think as we move through the rest of the process we'll be able to show that there's more they can't justify."
People who want to weigh in as regulators review the updated filing can submit comments to the Illinois Commerce Commission.
"That's one penny of safety benefit for each dollar spent, you don't have to be an economist to recognize a raw deal," Scarr said.
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