Smarter investments can build a safer, more equitable Chicago gas system 

Every dollar families spend on their energy bills should make the energy system safer, more reliable and more efficient. As the Illinois Commerce Commission considers Peoples Gas’ latest $144 million rate request, it has an opportunity to ensure customers receive greater value from the investments they are being asked to fund. 

The first statistical analysis of Peoples Gas’ leak records, pipeline maps and neighborhood demographic data, commissioned by Environmental Defense Fund and conducted by methane scientist Dr. Joe von Fischer, reveals an important challenge. Chicago neighborhoods with higher percentages of people of color have approximately 30% more leak-prone pipe per person, 40% more gas leaks per capita, 43% more leaks per mile of gas main and nearly 80% more leaks per mile of leak-prone pipe than neighborhoods with lower percentages of people of color. 

The analysis also found these neighborhoods are more likely to rely on residents reporting the smell of gas, rather than proactive utility surveys, to identify leaks. Together, these findings raise an important question: Are customer dollars being invested where they can make the biggest difference? The good news is that they can be. 

Peoples Gas already collects detailed information about the condition of its gas system and has invested in Advanced Methane Leak Detection technology, which can identify leaks more accurately and estimate how much methane each leak releases. By making better use of the data and reporting it publicly, the utility can reduce pollution, improve safety, make smarter infrastructure investments, deliver greater value for customers and increase transparency and accountability.  

Customers deserve confidence that every dollar they invest is improving safety, reducing methane emissions and reaching the communities where it can make the greatest difference. On behalf of EDF, Dr. von Fischer’s testimony before the Illinois Commerce Commission outlines practical steps to help achieve that goal. 

Better data should drive smarter investments 

Advanced Methane Leak Detection is an important step, but once it has the data, Peoples Gas should use it to prioritize repairs and pipeline replacement where they will have the greatest impact. The largest leaks often account for a disproportionate share of methane emissions, meaning that fixing them first can reduce pollution more quickly while making the best use of customer dollars. 

Not every segment of leak-prone pipe requires the same solution. In some cases, targeted repair can extend a pipe’s useful life at lower cost. In others, replacement is the best option. And in some areas, retirement – taking pipe out of service entirely – may deliver the greatest value, particularly where Non-Pipeline Alternatives such as electrification or energy efficiency can meet customer needs without investing in costly, long-lived gas infrastructure. 

Methane is the primary component of natural gas and a potent greenhouse gas responsible for about 30% of the global warming the world is experiencing today. Reducing methane emissions is one of the fastest ways to slow near-term warming while preventing customers from paying for natural gas that escapes into the atmosphere before it can be used. 

Customers deserve to know what’s working 

Customers are paying for infrastructure improvements, so they should be able to see whether those investments are delivering results. Today, Peoples Gas does not publicly share enough information for customers or regulators to evaluate its performance. EDF recommends publishing annual information on leaks, repairs, pipeline replacement projects and overall system performance. 

Greater transparency would help regulators, consumer advocates and the public assess whether customer-funded investments are improving safety, reducing methane emissions and delivering value. It would also help communities understand whether those investments are reaching the neighborhoods with the greatest need. 

Transparency also builds accountability. When utilities clearly explain how they prioritize projects and publicly report measurable outcomes, regulators can make more informed decisions, communities can better track progress and customers gain confidence that their money is being spent wisely. 

Investments should reduce inequities, not reinforce them 

Every customer helps pay to maintain and modernize the gas system. Those investments should improve safety and reliability for everyone, especially the communities facing the greatest risk of leaks. 

The statistical analysis found significant disparities in aging gas infrastructure across Chicago neighborhoods. Communities with higher percentages of people of color have more leak-prone pipe, more gas leaks and are more likely to rely on residents reporting gas odors than on proactive utility leak surveys. While repairing or replacing older pipes will eventually reduce risks, the order in which projects are completed determines which communities benefit first. If communities are not prioritized effectively, disparities will remain. 

As the Commission considers Peoples Gas’ rate request, it should require the company to prioritize repairs and pipeline replacement using engineering data, informed by environmental justice considerations. Doing so would help ensure customer investments improve safety, reduce methane emissions and deliver benefits more equitably across Chicago. 

Illinois has an opportunity to lead 

Illinois has long been a leader in modernizing energy policy. As the Illinois Commerce Commission considers Peoples Gas’ rate request, it has an opportunity to ensure customers receive the greatest possible value from every dollar they invest. 

EDF’s recommendations offer a practical path forward. By making better use of data, improving transparency and prioritizing investments where they will have the greatest impact, Peoples Gas can reduce methane emissions, strengthen safety and address longstanding inequities in its system. 

Customers should not have to choose between affordability, safety and climate progress. By making better use of data, increasing transparency and directing investments where they will have the greatest impact, Illinois can deliver all three.