Peoples Gas North Shore Gas $125 Million Settlement, Illinois Customers to Receive Automatic Bill Credits Through 2028

The Peoples Gas and North Shore Gas settlement is a $125,000,000 agreement with the Illinois Attorney General where over one million northeastern Illinois natural gas customers will receive automatic bill credits starting in 2026 — no claim form required — pending approval from the Illinois Commerce Commission. The settlement resolves allegations that both utilities charged customers for ineligible, wasteful, and unsubstantiated pipeline project expenses over a six-year period.

Quick Facts

Field	Detail
Total Settlement Amount	$125,000,000 in bill credits
Defendants	Peoples Gas Light and Coke Company; North Shore Gas Company
Who Qualifies	Peoples Gas and North Shore Gas customers in northeastern Illinois
2026 Estimated Credit	~$50 per Peoples Gas customer
2027 Estimated Credit	~$40 per Peoples Gas customer
2028 Estimated Credit	~$40 per Peoples Gas customer
Monthly Equivalent	~$3–$4 per month
Claim Form Required	No — credits applied automatically to bills
Settlement Status	Announced April 30, 2026 — pending ICC approval
Approving Body	Illinois Commerce Commission (ICC)
Announced By	Illinois Attorney General Kwame Raoul
Long-Term Savings	$350M+ from $130M capital cost removal
Last Updated	May 2, 2026

Current Status

• Illinois AG Kwame Raoul announced the settlement on April 30, 2026. It still requires approval from the Illinois Commerce Commission before credits can be issued.
• The $125 million breaks into two parts: a $75 million settlement related to Peoples Gas’ QIP rider and a $50 million settlement related to Peoples Gas’ and North Shore’s UEA riders.
• No ICC approval date has been announced yet. Once approved, credits begin automatically — customers do not need to take any action.

What Is the Peoples Gas Lawsuit About?

For years, Peoples Gas and North Shore Gas added extra monthly charges to customer bills through two special surcharges — the Qualified Infrastructure Plant (QIP) rider and the Uncollectible Expense Adjustment (UEA) rider. These were meant to fund legitimate pipeline work and cover unpaid bill costs. The AG’s office said the money went somewhere else entirely.

The settlement stems from monthly charges the companies levied from 2017 through 2023. The state argued the money collected from both charges was spent on ineligible expenses, including capital work, expired permits and unsubstantiated change orders. In plain terms: customers paid for pipeline work that either never qualified, was never completed properly, or was never properly documented — and nobody caught it until now.

The QIP surcharge alone increased to up to $30 per month before the cost was added to rates. That is not a rounding error — that is a meaningful chunk of what Illinois families were paying every single month for years. The AG’s office brought this case on behalf of ratepayers under Illinois utility consumer protection law, and the Illinois Commerce Commission must now decide whether to approve the deal.

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Who Gets a Bill Credit from the Peoples Gas Settlement?

You do not need to file anything or prove anything. If you are a current Peoples Gas or North Shore Gas customer in northeastern Illinois, the credits come to you automatically once the ICC approves the agreement.

You may be part of this settlement if:

• You are a current Peoples Gas customer in the Chicago area
• You are a current North Shore Gas customer in northeastern Illinois
• You paid the QIP surcharge on your bill at any point between 2017 and 2023
• You paid the UEA rider charge between 2019 and 2023

You are likely NOT included if:

• You are not a gas utility customer of either Peoples Gas or North Shore Gas
• You live outside their northeastern Illinois service territory
• You were a customer only before 2017 or after 2023 and have since closed your account

More than a million utility customers in northeastern Illinois are expected to share the $125 million in bill credits. The credits apply to active accounts — there is no process described for former customers who have since closed their accounts.

How Much Will Peoples Gas Customers Get?

The benefit will average around $50 annually in 2026 and around $40 each in 2027 and 2028, or about $3–$4 monthly. You will see this as a line-item credit on your gas bill — not a check, not a deposit, not a payment card.

The settlement also carries a much larger long-term benefit that does not show up as a direct credit. Peoples Gas agreed to remove $130 million in capital costs, which is estimated to save customers over $350 million, as customers pay for capital investments over time. Capital costs in utility billing work like a long-term loan — you pay for them spread across years or even decades. Removing $130 million from that pool means your bill stays lower for a long time after these three years of credits are done.

The total value of the deal — direct credits plus long-term savings — comes to over $475 million for ratepayers.

What Do You Need to Do to Get the Credit?

Nothing. Peoples Gas and North Shore Gas will apply bill credits automatically once the Illinois Commerce Commission approves the settlement. There is no claim form, no portal to visit, and no deadline to meet on your end.

Step 1 — Wait for the Illinois Commerce Commission to approve the settlement. No date has been set yet.

Step 2 — Look for a credit line on your gas bill once ICC approval is granted. It should appear as a direct reduction to your charges.

Step 3 — Expect approximately $50 in total credit spread across your 2026 bills, followed by roughly $40 each year in 2027 and 2028.

Step 4 — If you have questions or do not see a credit after ICC approval, contact Peoples Gas customer service directly. The settlement administrator contact is TBD — pending ICC approval and formal settlement administration setup.

No action required on your part. The credits are automatic.

Settlement Timeline

Milestone	Date
Surcharge Period Covered (QIP)	2017 – 2023
Surcharge Period Covered (UEA)	2019 – 2023
Settlement Announced	April 30, 2026
ICC Approval Required	TBD — pending Illinois Commerce Commission ruling
2026 Bill Credits Begin	TBD — pending ICC approval
2027 Bill Credits	TBD — pending ICC approval
2028 Bill Credits	TBD — pending ICC approval

Frequently Asked Questions

Is there really a $125 million settlement with Peoples Gas? 

Yes. Illinois Attorney General Kwame Raoul announced that Peoples Gas and North Shore Gas will pay $125 million to over a million utility customers in northeastern Illinois as part of a settlement over excessive monthly surcharges. The deal was announced April 30, 2026, and still requires ICC approval.

Do I need to file a claim to get my credit? 

No. Bill credits will be applied automatically to your account once the Illinois Commerce Commission approves the settlement. You do not need to register, submit proof, or contact anyone.

How much will I get from the Peoples Gas settlement?

 Peoples Gas customers can expect approximately $50 in 2026, $40 in 2027, and $40 in 2028 — spread across monthly bills at roughly $3–$4 per month. Exact amounts depend on final ICC approval and how credits are structured across billing cycles.

What were the QIP and UEA surcharges?

 The QIP surcharge — Qualified Infrastructure Plant — was a monthly fee added to gas bills to fund pipeline replacement work. The UEA — Uncollectible Expense Adjustment — was meant to cover costs from unpaid customer bills. The AG’s office said both charges collected money for expenses that were ineligible, expired, or unsubstantiated.

When will Peoples Gas settlement credits appear on my bill? 

That depends on when the Illinois Commerce Commission approves the settlement. No approval date has been announced as of May 2, 2026. Once approved, credits are expected to roll out across 2026 billing cycles.

Does this affect the Peoples Gas rate hike request? 

Separately, yes. Peoples Gas has remained committed to pushing through a $202 million rate hike, which would raise gas rates by an average of around $11 a month per customer, or about $130 per year. The ICC will rule on that request later in 2026. The $125 million settlement and the rate hike are two separate proceedings.

Will North Shore Gas customers also receive credits? 

Yes. North Shore Gas customers are included in the UEA rider portion of the settlement. Specific per-customer credit estimates for North Shore have not been released separately — contact North Shore Gas directly for details on your account.

Can I opt out and sue Peoples Gas on my own? 

This is an AG-negotiated regulatory settlement, not a traditional class action. There is no opt-out process described in the agreement. If you believe you have individual damages beyond what this settlement covers, consult a consumer rights lawyer or contact the Citizens Utility Board at citizensutilityboard.org.

Sources & References

• Illinois Attorney General Kwame Raoul press release, April 30, 2026
• Capitol News Illinois — Peoples Gas customers to see minor credits after settlement with AG’s office, April 30, 2026
• Chicago Sun-Times — Peoples Gas, North Shore Gas settle with state for $125 million, April 30, 2026
• Illinois Commerce Commission — icc.illinois.gov

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. Consult a qualified attorney for advice about your specific situation.

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against official Attorney General and Illinois Commerce Commission records. Last Updated: May 2, 2026.