Nicor seeks $309 million rate hike next year

Nicor gas customers could see their monthly natural gas bills rise by about $7.50 next year if state regulators approve rate hikes totaling $309 million as the utility company requested last week.

Nicor, which delivers gas to more than 2 million people in the suburbs and the rest of northern Illinois, filed the request with the Illinois Commerce Commission on Friday. If approved, the hike would be a state record, consumer advocates say.

Nicor is asking for permission to raise rates, including the monthly customer charge from $19.48 to $23.41, in order to fund projects to replace aging infrastructure and help maintain a secure energy supply through the completion of those projects.

"The company has carefully identified projects that will ensure uninterrupted natural gas service, 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 Lake Bloomington storage facility, which will ensure 24/7 on-demand energy is available to our customers on the coldest days of the year," the utility said in a statement.

But the Citizens Utility Board in a statement called the hike a "money-grab" for shareholders and vowed to fight the proposed hike. It also urged state officials to begin moving away from gas to alternatives that are less costly and environmentally friendly.

"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. "Gas is unsustainably expensive and it threatens our health and climate. State officials must begin to plan for the long-term transition away from gas to heating alternatives that are cheaper, safer and more reliable."

Nicor also said it's continuing to invest in modern technology to streamline experiences for customers and also on decarbonization strategies that include both gas and electric solutions.

"Many Americans are facing challenging times, and no one wants to see rising energy bills," the utility said. "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."

A report from the Building Decarbonization Coalition and Groundworks Data last year found that Illinois ratepayers could see their gas bills soar to approximately $650 a month during the coldest months by 2050 unless officials hit the brakes on spending from the state’s major gas utilities.

The Citizens Utility Board noted that this is the fifth significant rate hike request from Nicor since 2017. In 2023, Nicor requested a $320 million rate hike that was trimmed down to $223 million by the ICC.

People's Gas also submitted a rate hike request that year. The company's record $402 million proposal was eventually whittled down to about $301 million by state regulators.

The commerce commission has the rest of this year to decide on Nicor's latest request.