AG says Peoples Gas execs violated law with ICC testimony

CHICAGO (AP) - Illinois Attorney General Lisa Madigan says the chief executives of Peoples Gas and previous parent Integrys Energy Group violated state law when they withheld information from regulators on the cost of replacing 2,000 miles of aging Chicago gas mains.

Crain's Chicago Business reports (http://bit.ly/1WcBuXN) prior to a May appearance before the Illinois Commerce Commission, former Integrys CEO Charles Schrock and former Peoples President John Kleczynski were told the estimated cost to complete the infrastructure project by 2030 had soared past a $4.6 billion estimate to $8 billion. But according to testimony filed in December by new Peoples Gas parent WEC Energy Group, they repeatedly told regulators they had no updated cost figure.

Madigan's office estimates the pipe replacement project, if not restructured, will cost the average residential heating customer $7,700 over the 20 years.

Neither Schrock nor Kleczynski have responded to requests for comment.

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Information from: CRAIN'S CHICAGO BUSINESS.