CUB Gas Market Monitor
An Analysis of Illinois Natural Gas Corp's Offers
Illinois Natural Gas Corp is an unregulated gas supplier that markets or has marketed plans in at least one of the service territories of the regulated utilities in northern Illinois: Nicor Gas, Peoples Gas, or North Shore Gas. Some unregulated companies operate in all three. This is a summary of Illinois Natural Gas Corp's performance, followed by a breakdown of its plans in each utility service territory where the plans are offered.

Note: Illinois Natural Gas offered a 10 percent discount on 2005 gas costs, but a loophole in the fine print allowed the company to raise its fixed rate if it wanted. A deceptive-marketing lawsuit filed by the Illinois Attorney General resulted in a settlement whereby the company could not raise the price. Illinois Natural Gas later stopped marketing plans to new customers.


Plans offered in NICOR territory
Average
Savings|(Loss)
Number
of plans
Percent
Plans that saved
$12.35
4
80%
Plans that lost
($405.27)
1
20%

Active plans = 4  Expired plans = 1


Illinois Natural Gas Corp
Offer date
Plan typeTermUsage rateMonthly feeSavings
(Loss)
07/11/05Fixed5 Years$0.799$0.00$15.64
06/07/05Fixed5 Years$0.799$0.00$13.61
05/02/05Fixed5 Years$0.799$0.00$10.59
04/11/05Fixed5 Years$0.799$0.00$9.56
11/02/06FixedNov-07$0.929$0.00($405.27)






Plans offered in North Shore Gas territory
Average
Savings|(Loss)
Number
of plans
Percent
Plans that saved
$145.30
3
100%
Plans that lost
($0.00)
0
0%

Active plans = 3  Expired plans = 0


Illinois Natural Gas Corp
Offer date
Plan typeTermUsage rateMonthly feeSavings
(Loss)
06/07/05Fixed5 Years$0.799$0.00$147.71
05/02/05Fixed5 Years$0.799$0.00$145.02
04/11/05Fixed5 Years$0.799$0.00$143.17






Plans offered in Peoples Gas territory
Average
Savings|(Loss)
Number
of plans
Percent
Plans that saved
$240.86
3
100%
Plans that lost
($0.00)
0
0%

Active plans = 3  Expired plans = 0


Illinois Natural Gas Corp
Offer date
Plan typeTermUsage rateMonthly feeSavings
(Loss)
06/07/05Fixed5 Years$0.799$0.00$243.02
05/02/05Fixed5 Years$0.799$0.00$240.55
04/11/05Fixed5 Years$0.799$0.00$239.00
Past savings are no guarantee

Past savings obtained by these plans are no guarantee of future savings. It’s a roll of the dice, much like the stock market, except you are betting on the movement of natural gas prices. Industry and consumer experts can analyze past trends, but no one knows what the price of gas will be next week, let alone next year or five years from now.

Beware of misleading marketing

Don’t trust anyone who promises savings on your gas bill because they would need a crystal ball to do it.

Also, beware of door-to-door salespeople claiming to be from the gas company and never give out your account number to them. Always ask to see any offer in writing and take at least 24 hours to review and research it.

Read the fine print

Watch for hidden fees that boost the advertised per-therm rate, and early-termination charges that could penalize you by hundreds of dollars if you drop out of the offer before the contract is up.

Remember, a fixed rate is not always fixed. Some contract loopholes allow companies to cancel the agreement if prices rise and the terms no longer benefit them. You are signing a legal contract, so read it carefully.

You don’t have to switch

If you’re concerned about rising natural gas prices, your regulated utility’s “budget-billing plan” may be your best bet. Only switch gas suppliers if you fully understand all the terms and potential risks.

Many people switch suppliers thinking it’s a way to save money and that’s not always the case.

If it sounds too good to be true…

  …it probably is!

Santanna Energy Services has defaulted on its contracts twice because consumers were saving too much money. The company unilaterally ended the contracts and put consumers on a higher market rate.

A class action lawsuit against Santanna is pending.

CUB endorses no company

The Gas Market Monitor is for informational purposes only.

CUB does not endorse any particular plan or provider.

Confused? Call CUB

CUB can help you weigh all the pros and cons of switching to a new supplier. First check out our publications on the two gas choice programs: Customer Select (for Nicor customers) and Choices for You (for Peoples customers). If you still have questions, please call CUB’s Consumer Hotline,
at 1-800-669-5556.