Chicago gas pipe replacement plan could add billions in customer costs
A new analysis tied to an Illinois utility rate case argues that alternative rehabilitation methods could significantly reduce the long-term cost of replacing aging gas infrastructure in Chicago, according to Illinois PIRG analysis.
The report focuses on Peoples Gas and its long-running effort to replace more than 1,000 miles of aging iron gas mains across the city. Consumer advocates said the utility’s accelerated replacement strategy has contributed to rising customer delivery rates while relying too heavily on full pipe replacement rather than rehabilitation alternatives.
As reported by Illinois PIRG analysis, testimony submitted by energy consultant Sol deLeon estimated that replacing the entire system through traditional construction methods could cost customers more than $15 billion through 2070. An alternative scenario using cured-in-place lining technology on larger pipes was projected to reduce overall costs by more than $2 billion while still addressing leaks and extending infrastructure life.
The report said rehabilitation technologies could offer utilities another option for managing aging underground gas systems while limiting customer rate impacts. The analysis also suggested additional repair and non-pipe alternatives could further reduce long-term infrastructure costs.
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