Nicor proposes $309 million rate increase; could hike bills 9%

Nicor Gas, the state’s largest natural gas utility covering much of northern Illinois, is asking Illinois officials to approve a $309 million rate increase that, if approved, would raise a typical customer’s bill about $7.50 a month.

The request was filed last week with the Illinois Commerce Commission, kicking off an 11-month rate review process from the state agency.

The utility said the proposed hike – amounting to an approximately 9% annual increase – is needed to support critical infrastructure investments that will strengthen its ability to safely, reliably and affordably meet the demands of its 2.3 million customers.

“Many Americans are facing challenging times, and no one wants to see rising energy bills,” Nicor spokeswoman Jennifer Golz said in a statement Tuesday. “We want our customers to understand their bills and why the company is requesting to adjust rates that would allow Nicor Gas to meet those energy demands, especially during extreme weather, while helping make homes more efficient and providing energy assistance.”

However, the request already is facing opposition from the Citizens Utility Board, which on Tuesday labeled the proposed rate hike a “money-grab” to benefit Nicor shareholders.

“CUB will challenge this unfair rate hike – we urge state regulators to slash Nicor’s reckless spending and hold the company accountable,” CUB Executive Director Sarah Moskowitz said in a statement.

This proposed increase impacts delivery rates, which take up about a third to a half of gas bills, according to CUB. It is the fifth significant rate hike Nicor has requested since 2017, and the utility has received about $724 million in rate hikes since 2018, according to the advocacy group.

The latest proposed increase, if approved, would be the largest gas hike in Illinois history, CUB states.

According to Nicor, the company is making investments to ensure a secure energy supply, such as the Dubuque Line Main Replacement Project, which replaces sections of steel pipeline installed in 1959, and replacement of an aging compressor at the downstate Lake Bloomington storage facility.

“Nicor Gas’ distribution rates remain among the lowest of any major gas company in Illinois and under the proposed rates, the total bill for an average residential customer continues to remain in line with the Consumer Price Index,” Golz said.

Nicor’s service area includes 34 counties, including Bureau, Carroll, Cook, DeKalb, DuPage, Grundy, Kane, Kankakee, Kendall, Lake, La Salle, Lee, McHenry, Ogle, Will and Whiteside.

The filing is the formal start to an 11-month legal proceeding during which the ICC will review the proposal and conduct hearings on the request.

https://www.dailyherald.com/20250107/news/nicor-proposes-309-million-rate-increase-could-hike-bills-9/