The credit will appear as reductions on two line items through Dec. 3, split roughly evenly between the two sources. Customers are also slated to receive about $42 in credits in each of 2027 and 2028.

The settlement follows concerns raised by Raoul's office and consumer advocates about the cost of Peoples Gas' program to replace more than 1,000 miles of aging iron pipe beneath Chicago. The attorney general's office alleged the utility imprudently incurred costs that were then passed on to ratepayers, and that customers paid an excessive surcharge for qualified infrastructure investments from 2017 through 2023.

"Every dollar customers save can make a meaningful difference, especially as the winter heating season begins," Maria Bocanegra, president of Peoples Gas and North Shore Gas, said in a statement. "We remain committed to providing safe, reliable service and pursuing opportunities that deliver value for the customers we serve."

Beyond the credits, Peoples Gas agreed to remove $130 million in capital investments from its books. Because those costs are recovered from consumers over time, the move is expected to save customers more than $350 million. The utility also must adopt new accountability and transparency measures for the pipe program, including competitive bidding for contracts above $25,000 and documentation and approval of any cost change greater than $5,000.

"These bill credits are good news for Peoples Gas customers who have suffered so much financial pain because of the utility's wasteful spending," Citizens Utility Board Executive Director Sarah Moskowitz said in a statement after the settlement was announced.

The relief arrives as cold weather sets in and many Chicagoans face rising heating costs. Peoples Gas notes that financial assistance is available, including local and federal grants and bill reductions of up to 83%. Customers can learn more at peoplesgasdelivery.com/payment-bill/assistance or by calling 866-556-6001.