Natural gas bills may get higher

Some Naperville residents and businesses soon may see an increase in their natural gas bills.

The city is considering closing a loophole in the way it collects taxes for natural gas, adopting a 4-cent-per-therm tax for those who buy it from out-of-state suppliers.

But some members of the business community, which would bear the brunt of the tax, say it would hurt them in what is already a tough economic time.

In 1993, the gas industry was deregulated, resulting in some out-of-state companies selling gas to local customers. Since that time, those customers have been paying only part of the full 5 percent tax on gas.

"Fifteen years ago everyone paid the 5 percent," said Naperville finance director Doug Krieger. "We don't really view it as a new tax as opposed to ensuring the original tax of 5 percent gets applied to everyone uniformly."

The city would collect about $1.1 million more a year if the tax is in place for all gas customers.

Thirty-eight municipalities in Illinois already have approved a gas-use tax.

Of those who will be affected in Naperville, roughly 63 percent are businesses, 28 percent are industrial and 9 percent are residential customers.

Krieger said residents who get their gas from Nicor will not see a difference on their bills. The remaining residents could expect about an annual $35 increase if the tax is collected.

While an average cost increase is not available for businesses, Richard Greene, president and CEO of the Naperville Area Chamber of Commerce, estimates business and industrial users would pay a total increase of about $910,000.

At a recent city council meeting, Greene asked leaders to take more time to analyze the issue and its impact, saying what is seen as a loophole by some can be seen by others as "an incentive or simply the lack of a tax."

"During these times of record high energy prices, some governmental entities are grappling with the issue of freezing or providing a holiday for taxes on energy," Greene said. "The ordinance before you bucks that trend head-on and seeks to implement an energy tax on businesses and residents."

Several council members expressed initial support of collecting the tax.

Councilman Grant Wehrli said it is "merely leveling the playing field" and Councilman Richard Furstenau added that the additional $1.1 million in revenue is especially important when the city is facing a tight budget itself.

But the city council agreed to table the issue for further study. It will be back on the agenda in July.