Statement: Northern Illinois gas utility Nicor files for $309 million rate hike

Increase in authorized profits accounts for one-fifth of proposed increase

CHICAGO – Nicor Gas, the largest gas utility in Illinois, has filed a $309 million rate hike proposal with the Illinois Commerce Commission (ICC). If approved, Nicor, which serves most of northern Illinois outside of Chicago, will have raised its rates by more than $1 billion since 2018.

Nicor last increased rates by $228 million in December 2023. With the 2023 rate hike, Nicor’s charges for gas delivery to customers more than doubled in the span of six years. 

Nicor is proposing to increase its authorized profit rate from 9.51% to 10.35%. This change in profit rate alone accounts for one-fifth of the proposed rate increase. If approved, Nicor’s annual authorized profits would increase by more than $112 million.

The filing initiates a months-long process before utility regulators at the ICC. The ICC is in the midst of a “Future of Gas” proceeding to consider the future of gas utilities in Illinois given the state’s goal of economy-wide 100% clean energy usage by 2050.

Ameren Gas, which serves much of southern Illinois, just filed for a rate increase on Wednesday. Peoples Gas, which serves Chicago, has taken administrative steps that typically precede a rate filing. 

In response to Nicor’s filing, Illinois PIRG Director Abe Scarr made the following statement:

“As Illinois contemplates the future of gas, utilities are aggressively raising rates, attempting to cash in while they can and frustrating our state’s transition to 100% clean energy. With this filing, Nicor is proposing to raise rates for the fifth time in under eight years, for a total increase of more than 130%.

Along with our allies, we will scrutinize Nicor’s filing and call on regulators to scale back its excessive profit rate proposal and any wasteful spending on unnecessary fossil fuel infrastructure.”