Peoples Gas is seeking a $202 million rate increase that could raise average customer bills by about $11 per month, according to public discussions at the Chicago City Council Committee on Environmental Protection and Energy meeting held on March 3. The proposal has drawn criticism from community members and organizers who say many residents are already struggling with high utility costs.
The proposed rate hike comes as more than 145,000 Chicago households are at least 30 days behind on their Peoples Gas bills. WEC Energy Group, the parent company of Peoples Gas, reported $1.6 billion in profits in 2025 and saw revenues approach $10 billion between 2024 and 2025, according to the Chicago Sun-Times. These figures have fueled opposition to the increase among local advocates.
During public comment, Ian Herberger spoke on behalf of the Safer Cleaner Energy campaign, saying, “Chicagoans deserve better than this. Time and time again, Peoples Gas has failed to deliver on their proposed plans at the expense of the people of Chicago. Allowing them to go through with their new rate hike would be like failing an open book test.”
Christine Tsai, a policy student at University of Chicago, also addressed officials: “My own bills jumped from $60 in the fall, to $120 in the winter,” she said. “For many, this isn’t just a fluctuation in their budget, it’s a critical situation that forces people to choose between keeping their homes warm or putting food on the table.”
While City Council members were urged by stakeholders to oppose the rate hike publicly, any action they take would be symbolic since only the Illinois Commerce Commission (ICC) has authority over utility rates. The ICC consists of five commissioners who regulate public utilities under state law and act similarly to a court when interpreting regulations.
In 2023, the ICC approved a record $306 million rate increase for Peoples Gas. Company leaders argue that another increase is needed partly to complete its Pipe Retirement Program—a project intended to replace aging underground pipes but which has run over budget and behind schedule. Originally projected at under $2 billion for replacing more than 2,000 miles of pipe by 2030, it had cost $3.3 billion by 2025 while replacing only half that distance.
Regulators halted most work on the program in 2024 but later allowed limited resumption focused solely on retiring gas pipes deemed an acute safety risk by 2035. The ICC is expected to decide later this year whether Peoples Gas will be permitted to implement its latest requested rate increase.
Broader implications include ongoing debates about energy affordability and infrastructure investment across Chicago as residents await a final decision from state regulators.
