Peoples Gas settles pipe replacement cases for $18.5M

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Peoples Gas has agreed to pay $18.5 million to settle two cases filed by the Illinois attorney general’s office over the utility’s pipe replacement project. | Getty Images

The Illinois attorney general’s office has reached two agreements worth $18.5 million with a Chicago utility company to settle investigations of a pipe modernization project.

Attorney General Lisa Madigan asked Illinois’ utility regulator to investigate Peoples Gas last year, seeking reviews of its Accelerated Main Replacement Program and whether the company violated public utility law by withholding project cost estimates.

Madigan questioned company management and the impact for roughly 800,000 customers.

Her office announced settlements Tuesday with Peoples and parent company, Integrys Energy Group, which was acquired by Wisconsin Energy Corp. Most of the money will go to customers.

Peoples Gas doesn’t admit wrongdoing in the settlement. In a statement, the company says it’ll focus on upgrading Chicago’s natural gas infrastructure.

The settlement is subject to Illinois Commerce Commission approval.

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