Peoples Gas Files for Major Rate Increase; BOMA/Chicago Intervenes for Members

Published by BOMA/Chicago on: March 16, 2026

Peoples Gas has filed a general rate case seeking a $202.3 million increase, with new rates likely to take effect in early 2027. The proposal includes raising the company’s return on equity to 10.1%, up from the current 9.38%. The utility attributes the increase to roughly $600 million in planned investments through 2027 to retire remaining cast and ductile iron mains under an ICC safety order. At the same time, Peoples Gas’s parent company, WEC Energy Group, reported $1.2 billion in profits in the first nine months of 2025. 

For large commercial and industrial customers – those averaging more than 41,000 therms per month – the filing proposes notable increases across all major components of the tariff. The monthly customer charge would rise to $2,080.77 (from $1,872.77). The demand charge would increase to 164.165¢ per therm of billing demand (up from 140.678¢), and the distribution charge would rise to 10.062¢ per therm (from 7.629¢). 

Given the significant impact these changes could have on large buildings, BOMA/Chicago has formally intervened in the case to monitor the filing, analyze cost impacts, and ensure commercial building owners are represented throughout the ICC process. Our participation will focus on transparency, cost justification, and the fairness of the proposed rate design for high usage customers.