Illinois Commerce Commission approves study on Peoples Gas pipe replacement plan

The Illinois Commerce Commission accepted the conclusions in a recent study on Peoples Gas plan to replace aging natural gas pipes in its service territory in Chicago.

An independent study conducted by engineering firm Kiefner and Associates found that by replacing the aging gas system, Peoples Gas will significantly reduce risks in Chicago’s natural gas delivery network. Further, it found that more than 80 percent of the iron pipes in the Peoples Gas delivery system have an average remaining life of less than 15 years.

“This independent study and the ICC’s comprehensive analysis underscore the urgency of our System Modernization Program,” Charles Matthews, president and CEO of Peoples Gas and North Shore Gas, said.

Peoples Gas is in the process of replacing 2,000 miles of aging iron pipes, some as old as 150 years, with modern piping that does not rust or corrode. The upgrades will improve both safety and reliability, as well as reduce methane emissions.

The replacement effort was launched in 2011 in response to a call to action from the Obama administration by U.S. Secretary of Transportation Ray LaHood. The call to action came after a natural gas explosion in San Bruno, Calif., that killed eight people, injured 58, and destroyed 38 homes. Since then, gas pipeline explosions have occurred in Pennsylvania, Texas, New York, Massachusetts, and, most recently, Maryland. Since 2013, Peoples Gas has installed more than 758 miles of modern gas main, 70,492 service lines, 165,133 outdoor natural gas meters, and 242,345 explosion prevention devices as part of this project.

The project will be 30 percent complete by the end of 2020. It is scheduled to be fully completed by 2040.

“We’ve been able to keep these capital-intensive safety improvements moving forward as a result of an infrastructure rider approved by the Illinois General Assembly in 2013,” Matthews said. “The rider provides stability and, ultimately, allows us to perform this work at a lower cost to customers than would otherwise be possible through traditional rate structures. It also allows us to maintain hundreds of union and veteran jobs at a time when many workers are unemployed.”

In addition to accepting the conclusions of the Kiefner study, the ICC requested that Peoples Gas increase reporting and updates to the ICC. In addition, the ICC is asking for Peoples Gas to provide a cost/benefit analysis for possible additional leak detection.

Peoples Gas, a subsidiary of WEC Energy Group, serves more than 867,000 residential, commercial, and industrial customers in Chicago.