CUB Statement on Proposed Nicor Gas Rate Hike

Jim Chilsen, [email protected], (312) 513-1784

CHICAGO, March 13, 2017—It’s never good news to hear about a proposed rate hike. Nicor Gas’ parent, Southern Company, made more than $2 billion in profits in 2016, so if the gas utility wants an increase it will have to prove that it needs one. CUB will give Nicor’s proposal a thorough review, and we will challenge every penny of the increase that the company can’t justify.


*On Friday, March 10, Nicor Gas filed for a $208,459,000 ($208.5 million) delivery rate hike. The Illinois Commerce Commission (ICC) will rule on the request in about 11 months.

*Nicor says this will increase the bills of average residential customers by about 8.3 percent, or about $4.79 a month.

*This will impact delivery rates, which take up a third to a half of gas bills. It’s what Nicor charges customers to cover the costs of delivering gas to your home—plus a profit.

*Warning: Even customers who pay an alternative gas supplier still pay Nicor’s delivery charges. So customers should beware of any sales representative who says you can avoid the rate hike by going with an unregulated supplier. All customers would pay these higher rates.