A record-setting rate hike request by an Illinois gas utility is being challenged by consumer advocacy groups.
Nicor Gas has filed a $309 million rate hike proposal with the Illinois Commerce Commission (ICC). If approved, this would be the largest rate increase in Illinois history.
According to the Public Interest Research Group (PIRG), 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. The Citizens Utility Board (CUB) is also rallying against the proposal, noting that Nicor has received a total of about $724 million in rate hikes since 2018.
The ICC is currently conducting a “Future of Gas” proceeding to evaluate the future of gas utilities in Illinois, particularly in light of the state’s goal of achieving 100% clean energy by 2050. Consumer advocates argue that Nicor is attempting to maximize its rate increases before regulatory shifts take place.
“I think they anticipate the current business model is going to change so they’re working to raise rates as fast as they can,” said Illinois PIRG Director Abe Scarr.
Sarah Moskowitz, Executive Director of CUB, strongly opposes the rate hike, emphasizing its impact on consumers and the environment. “CUB will challenge this unfair rate hike – we urge state regulators to slash Nicor’s reckless spending and hold the company accountable,” she said. “Gas is unsustainably expensive and it threatens our health and climate. State officials must begin to plan for the long-term transition away from gas to heating alternatives that are cheaper, safer, and more reliable.”
If approved later this year, the rate hike would raise the average person’s bill by about $7.50 each month, further burdening consumers already struggling with rising costs.
Nicor issued a statement defending the proposal, asserting that the adjustment is necessary to continue providing reliable service. “Many Americans are facing challenging times, and no one wants to see rising energy bills. We want our customers to understand their bills and why the company is requesting to adjust rates that would allow Nicor Gas to meet those energy demands, especially during extreme weather,” the statement read.
The ICC has 11 months to review rate hike proposals, meaning a decision on Nicor’s request is expected in 2025. Consumer advocacy groups are expected to continue pushing back against the rate hike, arguing that it disproportionately benefits the utility at the expense of struggling households.
