Largest gas rate hike in Illinois history could raise bills $900 a year: watchdog

CHICAGO, Ill. (WTVO) — An Illinois watchdog group says Nicor’s request for an “exorbitant” $308.6 million rate hike should be halved.

If approved by the Illinois Commerce Commission (ICC), Nicor’s request would represent the largest gas rate hike in state history and would increase gas bills by about 9%.

Nicor has said the rate hike would increase average gas bills by about $7.50 a month, or $900 a year.

“Nicor Gas’ bid for a record-breaking rate hike is rife with excess and fat, and is more than double what the company can possibly justify,” said CUB communications director Jim Chilsen.

Nicor has made 5 requests for rate hike increases since 2017, raising delivery rates by 114%, according to CUB.

“In 2023, the Commission warned Nicor it would need to plan for a gas system that meets Illinois decarbonization goals. Two years later, that change is not happening fast enough,” said Environmental Defense Fund (EDF) Senior Attorney Curt Stokes. “EDF, along with our allies, has filed testimony charting a better course. It is our hope that Nicor will take our suggestions seriously and update its plan; if not, we will ask the Commission to order them to.”

CUB says a review of the rate hike proposal was conducted by a Missouri firm that found that more than $111 million would go to Nicor shareholders and executive bonuses.

“This testimony exposes Nicor’s bald-faced attempt to capture exorbitant shareholder profits–an all-too-familiar theme for the utility’s customers who have already suffered from exorbitant rate hikes in recent years,” said CUB Executive Director Sarah Moskowitz. “We urge the ICC to stand up for Nicor customers and slash the utility’s request for a record rate hike.”