Nicor Gas is facing opposition from the Citizens Utility Board (CUB) following its recent proposal to increase natural gas rates by $308 million. The proposal, if cleared by the Illinois Commerce Commission, would see the average customer's bill hike by approximately $7.50 each month. CUB has rebuffed the request, labeling it as a "money-grab meant to benefit shareholders to the detriment of customers," according to ABC 7 Chicago.
In a detailed submission to the Illinois Commerce Commission last week, Nicor proposed an increase in the monthly customer charge from $19.48 to $23.41, as obtained by the Chicago Sun-Times. The utility argues that funding is necessary for critical projects like the Dubuque Line Main Replacement Project and upgrades to the Lake Bloomington storage facility, both aiming to maintain continuous service and meet energy demand during extreme weather.
However, the CUB is challenging this justification. In a statement, CUB Executive Director Sarah Moskowitz expressed concerns over the financial burden on consumers, particularly in light of the fact that this is Nicor's fifth significant rate hike request since 2017. Moskowitz told the Chicago Sun-Times, "CUB will challenge this unfair rate hike — we urge state regulators to slash Nicor’s reckless spending and hold the company accountable." She also emphasized the need for a strategic shift away from natural gas to more sustainable and cost-effective heating solutions.
Within the context of these developments, the record reveals a persistent uptrend in Nicor Gas rates. Last year, Nicor initiated a $320 million rate hike which was eventually downsized to $223 million by the regulators. Meanwhile, reports from the Building Decarbonization Coalition and Groundworks Data warn of potentially skyrocketing gas bills for Illinois residents, possibly reaching $650 monthly by 2050 unless measures are taken to curtail spending by the state's major gas utilities. Nicor maintains it is committed to investing in modern technology to enhance customer experiences and in decarbonization strategies incorporating both gas and electric solutions.
The Illinois Commerce Commission has the remainder of the year to reach a decision on the latest rate increase application from Nicor. As deliberations proceed, the outcome will undoubtedly carry significant implications for over 2 million gas customers in northern Illinois, balancing the scales between infrastructure needs and consumer costs amid broader environmental and economic considerations.
