Nicor Gas customers in Wheaton and Warrenville will pay about $2 more per month after state regulators approved an $82 million rate increase on Thursday, Oct. 15.
The Illinois Commerce Commission (ICC) approved a settlement between Nicor and Illinois Attorney General Kwame Raoul's office that slashed the utility's original $221 million request by nearly two-thirds, WTTW News first reported. The original proposal would have added about $6 a month to residential bills.
Nicor, owned by Atlanta-based Southern Co., is the largest gas utility in Illinois. It serves 2.3 million customers across northern Illinois, including both Wheaton and Warrenville, according to the company's service territory map.
The settlement lowers the monthly fixed gas delivery charge from $21.30 to $15, according to Capitol News Illinois. That charge applies to every Nicor customer. Usage does not matter. The lower fixed fee gives customers more control over their bills and protects low-income households that tend to use less gas, according to Rob Kelter, senior attorney at the Environmental Law and Policy Center.
Abe Scarr, director of the Illinois Public Interest Research Group (Illinois PIRG), described the outcome in a statement as a compromise. "A settlement is a compromise, so we're not thrilled about every element, but we are pleased the Commission approved it," Scarr said.
Sources disagree on when the higher rates take effect. WTTW and Capitol News Illinois reported the increase begins in November, with Capitol News Illinois specifying Nov. 16. The Chicago Tribune reported the increase starts in January.
The settlement also reduced Nicor's allowed shareholder profit rate to 9.48%, down from the 10.35% the company sought. Illinois PIRG and Legal Action Chicago had pushed for 8.95%.
A separate side deal between Raoul's office and Nicor committed the utility to maintaining 2026 union staffing levels through the end of 2027 and continuing capital investment. Consumer and environmental groups that signed the main settlement declined to join the labor agreement. Scarr called it "bad policy and a misstep" by the attorney general's office.
ICC Chairman Doug Scott said the commission is "not bound by any of the terms of this settlement in any future matter" and retains authority to scrutinize future spending and rates. The ICC also said similar employment agreements "should not come before the commission" in the future, the Tribune reported.
Consumer advocates expect Nicor to file another rate case in January. WTTW reported that Nicor did not respond to questions about future rate case plans. Scarr described the pattern of increases as driven by "excessive spending," noting this is Nicor's sixth rate hike in a decade.
