Citizens Utility Board says Peoples Gas pipeline replacement will require 7% annual rate hikes
CHICAGO (CBS) -- A new report finds heating bills in Chicago could double by 2040 if state regulators allow Peoples Gas to move forward with its pipeline replacement project.
According to the Citizens Utility Board, it will cost another $12.8 billion to complete the project--$5 billion more than previous estimates.
CUB says Peoples Gas would need to impose a record-setting 7% annual rate increases over the next 15 years to cover the cost.
"State regulators need to vigorously monitor the utility so the company is efficiently replacing unsafe pipes, and not using this program as a tool to pad their profits," said Jim Chilsen of the Citizens Utility Board.
Peoples Gas says replacing the pipes is an urgent safety matter.
They also dispute CUB's figures, saying the organization misstates the cost by billions of dollars.
