* Tribune…
As President-elect Donald Trump extolled the virtues of natural gas during a post-certification speech Tuesday, details emerged about a proposed $309 million Nicor Gas rate increase that seeks to raise delivery charges for Chicago-area customers by more than 20% next year.
Filed Friday with the Illinois Commerce Commission, it is the fifth rate hike requested by Nicor since 2018. Regulators have 11 months to review the new proposal, which, if approved, would be the largest gas rate increase in Illinois history.
In a statement Tuesday, Nicor said the proposed record rate increase is needed to replace aging infrastructure and update technology to serve its 2.3 million customers in suburban Chicago and across northern Illinois.
“Many Americans are facing challenging times, and no one wants to see rising energy bills,” Jennifer Golz, a spokesperson for Naperville-based Nicor, said in the statement. “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.”
* Sun-Times…
Nicor gas customers could see their monthly natural gas bills rise by about $7.50 next year if state regulators approve rate hikes totaling $309 million as the utility company requested last week.
Nicor, which delivers gas to more than 2 million people in the suburbs and the rest of northern Illinois, filed the request with the Illinois Commerce Commission on Friday. If approved, the hike would be a state record, consumer advocates say.
Nicor is asking for permission to raise rates, including the monthly customer charge from $19.48 to $23.41, in order to fund projects to replace aging infrastructure and help maintain a secure energy supply through the completion of those projects.
“The company has carefully identified projects that will ensure uninterrupted natural gas service, such as the Dubuque Line Main Replacement Project, which replaces sections of steel pipeline installed in 1959, and replacement of an aging compressor at the Lake Bloomington storage facility, which will ensure 24/7 on-demand energy is available to our customers on the coldest days of the year,” the utility said in a statement.
* Citizens Utility Board Executive Director Sarah Moskowitz…
Nicor Gas’ campaign for a state-record rate hike of about $308.6 million–which is closer to $325 million when including taxes–is unjustified, and CUB will fight it. Illinois’ largest gas utility has now asked for five brutal rate hikes in less than a decade, causing hardship for customers by increasing gas delivery charges by a staggering $724 million since 2018 and helping the utility’s parent company roll in outrageous profits. Heat is a human necessity, not a profit tool–but Nicor’s push for a ridiculous 10.35 percent Return on Equity (ROE), or profit rate for shareholders, exposes this rate-hike request for what it is: A money-grab meant to benefit shareholders to the detriment of customers who just want to keep their homes warm in an Illinois winter. CUB will challenge this unfair rate hike– we urge state regulators to slash Nicor’s reckless spending and hold the company accountable. 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.
Thoughts?
- Lincoln Lad - Wednesday, Jan 8, 25 @ 10:11 am:
5 increases since 2018? How have they been able to keep the lights on?
- hisgirlfriday - Wednesday, Jan 8, 25 @ 11:47 am:
Where does the natural gas supply for Illinois come from and is it Canada?
If so I expect prices to go way up the next four years.
- TheInvisibleMan - Wednesday, Jan 8, 25 @ 12:55 pm:
“including the monthly customer charge from $19.48 to $23.41″
That’s about a 20% increase, just for the privilege of being a customer.
During the summer months, I use zero gas, but will still have to pay almost $25/mo to the gas company. For nothing.
It’s not the cost of energy which is making me look to alternatives, as much as it is costs like this which aren’t providing anything tangible. There’s no problem paying for what I use, but there’s a bit of friction when I still have to pay for not using anything at all.
Gas stove, replaced with an induction stove. Should have done that much sooner.
Water heater - switched to electric years ago, and will shortly switch to heat pump water heater.
Once the furnace is swapped out over the coming summer with heat pump heating, I’ll be able to disconnect from using gas at all. That alone will save $300/yr I’m paying to Nicor every year before I even use a single BTU/cf of gas. That’s a pretty good incentive to switch off of using gas, even if it is an unintentional one.
- DuPage Saint - Wednesday, Jan 8, 25 @ 1:59 pm:
It really doesn’t matter if gas comes from Canada in a little while it will becoming from our 51st state. Just like as if it was coming from North Dakota only a little further north. /s