Illinois utility regulators are launching a formal investigation into whether Peoples Gas executives misled them about the price tag of a pipe replacement project that could cost Chicago consumers about $8-billion.
The Illinois Commerce Commission says its investigation was prompted by a September audit that found Peoples Gas officials knew in January that the project could exceed $8 billion.
Company executives testified before the commission in May that estimates were unknown. The work replacing aging Chicago pipes started in 2011, with an initial cost estimate of about $2.6 billion.
Attorney General Lisa Madigan has described the project as "out of control." A Peoples Gas spokeswoman says the company "will continue to fully cooperate" with the commission and the investigation.
