Panel: Nicor should get rate hike, but not as much as it’s seeking

An Illinois Commerce Commission panel recommended Monday that the regulatory agency approve a rate hike for Nicor Gas, but not as steep as the one the utility is seeking.

The ICC’s administrative law judges’ published opinion suggests shaving $109.8 million from Nicor’s proposed $314.2 million rate hike, setting it at about $204.4 million, according to the Citizens Utility Board.

The ICC is set to make a final determination in November. If approved, Nicor’s rate hike would increase average gas bills by about 9%, or more than $7 a month, and push the utility’s total increases to more than $1 billion in less than a decade, according to CUB.

Nicor spokeswoman Jennifer Golz said the utility is reviewing the administrative law judges’ proposal.

“As Illinois faces growth and changes in the energy landscape, our commitment to serving 2.3 million customers remains steadfast,” she said in a written statement. “We are working to keep bills as low as possible, while also managing costs to meet evolving regulations that require investment in a resilient energy infrastructure.”

On Tuesday, advocacy groups, including CUB and Illinois PIRG, urged the ICC to reduce the rate hike even further.

“This Proposed Order is a promising step toward holding Nicor accountable, but we hope regulators will see that there’s plenty more room to do justice for consumers by eliminating wasteful spending and a bloated profit rate for shareholders,” CUB Executive Director Sarah Moskowitz said in a statement.

Advocates noted that a rate hike would be Nicor’s fifth in eight years, and come as consumers faced electricity cost increases over the summer.

“The Commission should further limit excessive utility profits and rein in Nicor’s wasteful spending on unnecessary fossil fuel infrastructure, rejecting Nicor’s business as usual approach,” Illinois PIRG Director Abe Scarr said in a statement.