Late last month, the Illinois Commerce Commission suspended Peoples Gas' pipe replacement and ordered an investigation into this program, which is responsible for an increase in rates since work began in 2011. The call to restart the program in the op-ed "The ICC needs to restart Peoples Gas' pipeline replacement immediately" (Nov. 29) is shortsighted, and doesn't factor in the surge in market trends toward home electrification technologies, driven by consumer choice.
The commission's decision was therefore appropriate and in the best interest of Illinois consumers. Only 35% of the utility's pipes have been replaced over 12 years of work, with no notable reduction in failure rate. In addition to the fact that this program did not deliver its stated goal of replacing thousands of miles of old gas lines, the program budget continued to balloon year over year, from $1.4 billion in 2007 to an estimated $11 billion.
At the current rate of progress, this project will take another 26 years to complete, so the company is essentially asking customers to pay billions more for upgrades on a system through 2049 when it isn't even clear natural gas is the most cost-effective, safe or environmentally friendly energy source today, let alone decades from now.
The ICC's decision is aligned with unstoppable consumer trends toward non-gas technologies that heat our homes and businesses just as well as gas-powered furnaces. Technologies like air and ground source heat pumps for heating spaces and water are gaining traction across the country, showing great effectiveness in cold climates and providing comfortable homes. Case in point: More heat pumps were sold in the U.S. than gas furnaces in both 2022 and 2023.
Electric technologies are already safer and cleaner and are becoming more affordable every year, especially given generous federal rebates and tax credits. We don't need to spend billions of dollars to maintain a gas utility system that consumers are tapping into less and less as they choose commercially available products when the old furnace bites the dust. The ICC seems to be thinking ahead here, by insisting on exploring alternatives that are taking us into the future and by acting in the interest of consumers of today.