Consumer advocates say Nicor’s rate hike is unreasonable, profit-driven
[May 19, 2026]
By Sean Reed | The Center Square
(The Center Square) – Consumer advocates have signaled heavy opposition
to a proposed $221 million rate hike by Nicor Gas, arguing that the
request is excessive, charging Illinoisans over five times what’s
needed.
The request trailed just weeks behind the Illinois Commerce Commission’s
approval of a $167.8 million hike last year. It would also be the sixth
jump in delivery costs in the past decade.
Experts on the matter from the Citizens Utility Board, Illinois PIRG,
and the Environmental Defense Fund came together early Monday to outline
their opposition to the rate hike.
The same experts have also shared testimony to the ICC, which must
approve or deny requested utility rate hikes before they can take
effect.
Nicor's spending has significantly increased since 2015 – mostly
attributed to a state law that required the replacement of old delivery
pipes. Despite the law’s sunset and all replacements having been
completed by 2018, critics say the company’s spending has only continued
to trend upward.
According to Jim Chilsen of the Citizen’s Utility Board, the proposed
increase would add to the financial burden for all Nicor customers,
200,000 of whom are behind on their bills by $74 million total, as of
last month.
“When the supply side of bills is so volatile, it just adds to the pain
when you have a company like Nicor Gas going on a spending spree over
the last decade and going before the commission to ask for six separate
rate hikes. That's been a hardship,” Chilsen said.
Despite volatility in energy markets stemming from conflict in the
middle east, the cost to Nicor consumers for natural gas has reduced
since the beginning of the year, and the utility’s current rate of $0.36
per therm is the lowest it has been since February 2025, according to
ICC data.
The utility’s communications about the rate hike highlighted that new
costs to customers would be put toward upgrades to natural gas
infrastructure owned by the company.
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“With this proposed request, a typical residential customer would
see an increase of less than $6 per month in their energy delivery
charge, or 6.7% annual increase,” the company said in a post on
their website.
Eric DeBellis, general counsel for CUB, said the rate hike isn’t
about proposed projects by the utility, but about increasing profit.
“Nicor is trying to charge us for phantom expenses that don't exist,
lavish executive bonuses, and an egregious profit rate for its
shareholders,” DeBellis said.
On a similar note, Director of Illinois PIRG Abe Scarr was also
critical of the company’s increase in profits.
“Utilities exist to provide a public good, and we allow them a
private profit in pursuit of that public good, but the public
interest must remain paramount. Northern Illinois deserves a utility
that serves the region,” Scarr said.
Another angle of criticism comes from environmentalists, who claim
the pipeline gas delivery projects Nicor seeks to invest in are
inefficient and less cost effective than other solutions.
According to Curt Stokes of the EDF, if Nicor were to instead invest
in non-pipeline alternatives, such as lining existing pipelines to
prevent leaks and increase efficiency – rather than constructing new
ones – the utility would not have to raise rates anywhere near what
they are proposing.
“[Non-pipeline alternatives] are cheaper and they are more
affordable and adopting a more meaningful non-pipeline alternative
framework will result in a cleaner, more affordable system,” Stokes
said.
The ICC ordered Nicor last year to give consideration to pipeline
alternatives, something Stokes said the utility did not fairly
consider.
Under state law, the ICC has until early December of this year to
either adjust, approve or deny Nicor’s request.
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