About the Proposed Nicor Rate Hike

By Madeline Messer, Climate Solutions Associate with the Public Interest Research Group

If you’ve noticed your gas bills creeping up over the past few years, you’re not imagining things. Some customers have seen their bills double in less than a decade. Illinois’ largest gas utility, Nicor, has raised rates four times since 2017, leading to a 114% increase on customer bills each month. Now they’re asking for an additional $204 million, which would raise prices 138% since 2017. 

If these trends continue, will electrification and renewable energy become the budget-friendly options? What is the future of gas in Illinois? Let’s look more into what’s happening now. 

Why Nicor's Gas Rate Hike Just Doesn't Add Up 

For decades, Nicor’s rates were steady and even grew slower than inflation, consistent with many other natural gas suppliers nationwide. But in 2015, Nicor’s spending suddenly skyrocketed from about $175 million per year to nearly $750 million annually. 

Why? Because of a state law that made it easier for utilities to spend big on infrastructure without much oversight. That law, called the Qualified Infrastructure Plant (QIP) program, was supposed to help fix old pipelines that were leaking dangerous amounts of methane gas. Other states with old natural gas systems like Maine, Pennsylvania, Maryland, and D.C. also passed similar legislation to accelerate pipeline replacement and repair. 

Fortunately for us, Nicor has replaced almost all of its leaky pipelines and the law permitting the QIP charge ended in 2023. But Nicor is still operating business-as-usual and has requested even higher profit rates and fixed monthly charges to customers. 

Why would Nicor want to spend $204 million more on a project that’s practically complete? Because it can add all the infrastructure expenses back onto customers’ bills and keep the profits. Under its initial rate hike proposal, the more money it spends on infrastructure, the more Nicor’s motivation to overspend is simple -- because the more money it spends on infrastructure, the greater its opportunity to profit. 

Even beyond the questionable necessity of its proposed spending, Nicor’s investments in fossil fuel infrastructure work against Illinois’ clean energy goals. It’s time for us to move beyond Nicor’s business-as-usual approach and start planning for a cleaner, more affordable energy future.

What YOU Can Do

So what can we do? Well, right now the final decision on Nicor’s rate hike rests with the Illinois Commerce Commission (ICC), the government body responsible for balancing utility and consumer needs. In 2023, consumer and environmental advocates pushed back against Nicor’s rate hikes and the ICC heard our voices. It cut Nicor’s proposal by almost $100 million and launched a process to consider the future of gas in Illinois. 

The ICC has been considering Nicor’s rate hike for several months and released a draft decision this Monday (10/6). They proposed to cut Nicor’s expenses by ~33%, but advocates are still pushing for a 50% reduction. Experts from Illinois Public Interest Research Group and allies have already identified over $150 million in questionable or premature projects in Nicor’s proposal and we have about one month until the ICC releases their final decision.

Today, citizens need to again call upon the ICC to eliminate unnecessary expenses from Nicor’s rate hike. Here’s how you can get involved:

Speak at an ICC open meeting
You can comment in-person or virtually, but must register at least 24 hours in advance: https://www.icc.illinois.gov/efiling/participate (Dates are 10/16 and 11/6 in Springfield, and 10/30 in Chicago.) See our public comment guidance

Write a Letter to the Editor:
Now is the perfect time to submit a letter and continue our media momentum because the draft decision was released on Monday, 10/6.

• Here is a blurb to get you started:
• Nicor, Illinois’ largest gas utility, serves most of northern Illinois outside of Chicago. It has already raised rates by 114% since 2017 — more than any other utility in Illinois. If the Commission adopts the judge's recommendation, rates will have gone up by 138%.
• PIRG, CUB, and EDF released statements in response on 10/8
• News outlets pick up the story on 10/8
• Chicago Sun Times, Daily Herald, Rockford Register Star, Chicago Tribune 
• Your letter to the editor can respond to any or all of the above
• See our letter-writing guide or email mmesser@illinoispirg.org for more informationAttend a petition drop of over 30,000 Nicor customer signatures gathered by PIRG, CUB, and AARP on 10/22 (tentative date)

• Email mmesser@illinoispirg.org or RSVP on Illinois PIRG’s webpage on Friday, 10/8

Say “No more!” to Nicor by signing the petition yourself

Petition with ILPIRG, CUB, or other advocates to collect more signatures

• Email mmesser@illinoispirg.org for petitioning schedule/locations

Switch to electric or renewable energy for your house

• Use less energy by increasing your energy efficiency
• Install solar panels or a geothermal pump
• Include renewable energy sources in your electric usage

Click HERE for a timeline of the Nicor rate case.  Thank you for joining the fight for a better future in Illinois.

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