Madigan Calls for Investigation into the Peoples Gas Pipeline Project

Madigan Calls for Investigation into the Peoples Gas Pipeline Project

On Monday, Lisa Madigan, the Illinois Attorney General called for an investigation into the new project proposed by Peoples Gas, by the Illinois Commerce Commission.

In an independent audit by Liberty Consulting Group, it was found that the original plan proposed in 2009 ballooned to $8 billion from the initial estimate of about $2.5 billion cost. The increase in the cost would heavily come on the consumers.

According to Madigan's office, the increase in estimates could cost every customer of Peoples Gas about $7,700 in the life span of the project. Earlier Madigan had said that even if the project cost a $4 billion it would still double the base rates for the customers in Chicago.

Madigan wants an investigation by the Illinois Commerce Commission, as she calls it "a disaster that raises serious questions about the safety, reliability and affordability of Peoples Gas service."

Peoples Gas responded to it saying that it agreed the program "needed a fresh start" keeping in line with what the state wants.

Peoples Gas delivers natural gas to approximately 831,000 customers in Chicago. For long the utility has been criticized for its way of handling the project which aims at replacing the two thousand mile long old, iron pipe lines which are prone to leaking. The new project proposes replacing the metal pipe with plastic pipe lines.