Nicor seeks another massive rate hike that could add $6 to suburban gas bills
Suburban residents will see higher natural gas bills this month, and they could climb again next year if Nicor gets its way with state regulators.
Less than two months after the Illinois Commerce Commission granted a rate hike averaging out to an additional $4.25 on monthly household bills for the utility’s 2.3 million customers, Nicor requested another increase Friday that would jack up bills by almost $6 next year.
Utilities have to ask the state for permission to charge customers more to deliver energy. Nicor has done so six times since 2017.
Their latest ask came a few days after Peoples Gas requested a roughly $11-per-month increase for Chicago residents as energy costs soar for households nationwide.
Nicor’s latest request, if granted, would mark rate increases of nearly 170% in less than a decade — “significantly higher than any other major Illinois gas or electric utility,” according to consumer advocates at the Illinois Public Interest Research Group.
Nicor says they need the additional $221 million to replace aging equipment, replace 45 miles of pipeline, relocate facilities “to accommodate public infrastructure improvements” and inspect, assess and repair another 400 miles of pipes.
“We understand that any increase can have an impact, and we don’t make this request lightly,” Nicor president Wendell Dallas said in a statement. “Our engineers and experts draw on more than 160 years of knowledge and experience to help ensure that Illinois families and businesses have the safe, reliable natural gas service they can count on for comfort, warmth and peace of mind.”
The company asked the Commerce Commission for a $309 million rate hike last year, which regulators slashed to $168 million in November to start appearing on bills this year. ICC Chairman Doug Scott said then that his panel “opted to strike excess charges and approve necessary and justified projects.”
Asked why Nicor is seeking another rate hike in short order, spokeswoman Jennifer Golz said the Commission “disallowed $120 million of capital investments that were already made or planned to be completed in 2026.
“The ICC’s decision ran counter to the perspective of Nicor Gas engineers and professionals with decades of experience and expertise who advise that those investments were required by federal regulators; necessary to provide reliable, resilient service; and reasonable in cost,” Golz said in an email. “Based on the ICC’s decision, the company will now need to file rate requests on a more frequent basis to obtain guidance on planned capital investments.”
Utilities can generate higher profits when they’re authorized to make big infrastructure investments. Nicor’s parent company, Atlanta-based Southern Co., reported profits of $3.9 billion in the first three quarters of 2025.
“The ink is barely dry on a $168 million rate hike Nicor Gas received just seven weeks ago, and now the utility has got its hands in our pockets again,” Sarah Moskowitz, executive director of the Citizens Utility Board, said in a statement. “CUB will challenge Nicor's money grab and we call on state regulators to crack down on the company. We are deeply concerned that this sixth rate hike will push even more gas customers into hardship.”
Illinois PIRG Director Abe Scarr said he was “shocked that Nicor is proposing to raise rates again… Nicor is busting its customers’ household budgets because it apparently refuses to live within its own.
“Nicor failed to justify its aggressive infrastructure spending in its last rate case. We plan to review this latest rate hike request in detail, and challenge Nicor’s overinvestment in unnecessary fossil fuel infrastructure,” Scarr said.
Nicor’s new rate case is expected to be decided by the end of 2026.