ICC approves settlements refunding Peoples Gas, North Shore Gas customers

Chicago, IL - On Thursday, the Illinois Commerce Commission (ICC) approved settlements providing Peoples Gas and North Shore Gas customers relief on their natural gas bills over the next three years. The settlements resolve all contested issues in Peoples' pending Qualifying Infrastructure Plant (QIP) cases and reconcile costs related to both utilities' Uncollectible Expense Adjustment (UEA) riders.

"The settlements approved today are a win for Peoples Gas and North Shore Gas customers who can expect to see credits on future gas bills," said ICC Chairman Doug Scott. "The ICC's duty is to balance the interests of Illinois' utilities and their consumers, and these settlements reflect a fair and reasonable process."

The first settlement resolves Peoples Gas' QIP rider reconciliation proceedings from 2017 to 2023 and removes $130 million from Peoples' delivery base rates. Under the agreement, Peoples Gas will distribute $75 million in bill credits over three years: $25 million in 2026, $25 million in 2027, and $25 million in 2028 to eligible customers. Peoples Gas estimates that eligible customers will average a total refund of $139 over the three years, with bill credits expected to start November 2026. In addition to the rate reduction and refund, the QIP settlement includes a general documentation and bidding procedure for Peoples' ongoing pipe retirement program for high-risk cast iron and ductile iron pipes.

The second settlement reconciles costs and revenues tied to Peoples and North Shore Gas' UEA, resulting in a combined $50 million in bill credits over the next three years. North Shore will distribute $500,000 in 2026, $250,000 in 2027, and $250,000 in 2028. Peoples Gas will distribute $24,500,000 in 2026, $12,250,000 in 2027, and $12,250,000 in 2028. Customers receiving a refund will see the adjustment denoted on their bill as "UEA Settlement Adjustment."

The settlements were reached between ICC staff, Peoples Gas, North Shore Gas, the Illinois Attorney General's Office, and Citizen's Utility Board. In accordance with the Illinois Public Utilities Act, utility system costs are only recoverable if the utility demonstrates they are just, reasonable, and prudently incurred.

Peoples Gas and North Shore Gas service a combined 1 million natural gas customers in the City of Chicago and the northern suburbs.

About the Illinois Commerce Commission

The ICC is a quasi-judicial body made up of five Commissioners. Through its Public Utility Program, the Commission oversees the provision of adequate, reliable, efficient, and safe utility services at the least possible cost to Illinois citizens served by electric, natural gas, telecommunications, water, and sewer public utility companies. Through its Transportation Regulatory Program, the Commission oversees public safety and consumer protection programs with regard to intrastate commercial motor carriers of general freight, household goods movers, relocation towers, safety towers, personal property warehouses, and repossession agencies. The ICC's Rail Safety Program also inspects and regulates the general safety of railroad tracks, facilities, and equipment in the state.