Peoples Gas Customers Protest Proposed $202M Rate Hike in Chicago

Customers and advocates rally against the increase that would add $10-11 per month to typical residential bills.

Apr. 2, 2026 at 9:23pm

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A close-up photograph of a weathered, cracked gas meter dial against a clean, monochromatic background, representing the aging infrastructure and rising costs at the heart of this story about a proposed utility rate hike.A cracked gas meter dial symbolizes the aging infrastructure and rising costs that have Peoples Gas customers protesting a proposed $202 million rate hike.Chicago Today

Over 100 Peoples Gas customers and utility watchdog advocates gathered in Chicago's Daley Plaza on Wednesday to protest a $202.3 million rate hike request submitted by the company. If approved, the increase would add an average of $10-11 per month to typical residential bills starting in 2027.

Why it matters

The proposed rate hike comes just three years after Peoples Gas received the largest rate increase in Illinois history, raising concerns about the utility's spending and the impact on customers, especially those already struggling to pay their bills.

The details

Peoples Gas said the higher rates are needed to meet a state requirement to retire over 1,000 miles of aging iron pipes in Chicago's heating system by 2035. However, critics argue the utility has mismanaged its pipe replacement program, going over budget and failing to prioritize the removal of at-risk pipes. They are calling for Peoples Gas to thoroughly analyze alternatives to the pipe replacement, such as system electrification, that could reduce reliance on fossil fuels.

  • Peoples Gas submitted the $202.3 million rate hike request in January 2026.
  • The Illinois Commerce Commission is expected to rule on the request in November 2026.
  • If approved, the new delivery rates would go into effect starting in 2027.

The players

Peoples Gas

A natural gas utility serving customers in the Chicago area. The company has requested a $202.3 million rate hike to fund its pipe replacement program.

Illinois Commerce Commission

The state regulatory body that will decide whether to approve Peoples Gas' rate hike request.

Citizens Utility Board

A nonprofit consumer advocacy group that is opposing the Peoples Gas rate hike, citing the impact on customers.

U.S. Rep. Mike Quigley

A Democratic congressman from Chicago who joined the rally and vowed to pursue legislation banning utility CEO bonuses if Democrats regain control of Congress.

Illinois Public Interest Research Group

A consumer advocacy organization that has criticized Peoples Gas for not adequately exploring alternatives to its pipe replacement program.

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What they’re saying

“The Peoples Gas rate hike will be a hardship on Chicago neighbors. Everyone here agrees that they need to maintain their system, but they shouldn't be doing it by bankrupting their customers.”

— Ivonne Rychwa, Outreach director, Citizens Utility Board

“Come this November, we are going to ban utility CEOs from taking bonuses. That's why they raise your rates. We're going to put an end to ridiculously high return on equity.”

— U.S. Rep. Mike Quigley

“But now Peoples Gas is not implementing those reforms. Instead, they're back with more of the same, a program that costs too much, won't work and will lock us into unnecessary fossil fuel infrastructure.”

— Abe Scarr, Director, Illinois Public Interest Research Group

What’s next

The Illinois Commerce Commission is expected to rule on Peoples Gas' rate hike request in November 2026.

The takeaway

This case highlights the ongoing tension between utility companies' infrastructure needs, the impact on customer bills, and the push for more sustainable energy solutions. It raises questions about the role of regulators in balancing these competing priorities.