Nicor Gas asks for $221 million price increase

Nicor Gas is asking the state to approve a $221 million price increase, saying it needs the money to enhance the safety and reliability of the natural-gas system that serves residents in the Chicago suburbs and northern Illinois.

It filed its request with the Illinois Commerce Commission Friday, according to a news release.

It is the sixth time since 2017 Nicor has asked to increase prices. According to the Illinois Public Interest Research Group, Nicor prices have increased 170% since then.

“I’m shocked that Nicor is proposing to raise rates again, just one month after imposing its last rate hike. Nicor is busting its customers’ household budgets because it apparently refuses to live within its own,” Illinois PIRG executive director Abe Skarr said in a news release reacting to the announcement.

“Nicor failed to justify its aggressive infrastructure spending in its last rate case. We plan to review this latest rate hike request in detail, and challenge Nicor’s over-investment in unnecessary fossil fuel infrastructure.”

Nicor says that the increase would cost a residential customer about 6.7% more for the energy delivery charge portion of their bills, or less than $6 per month.

Last year, it asked for a $309 million increase, but the ICC board deemed that excessive, and approved just $148 million.

Nicor has more than 34,000 miles of pipes and manages eight storage facilities.

“Everything we do centers around our customers and communities,” said Wendell Dallas, president and chief executive officer of Nicor Gas. “We understand that any increase can have an impact, and we don’t make this request lightly.”

Officials say the money will replace aging equipment and help maintain those storage facilities; replace about 45 miles of distribution pipes; move some facilities to accommodate public infrastructure projects; and inspect, assess and repair more than 400 miles of transmission pipes.

Last year, the Citizens Utility Board, IPIRG and the AARP protested Nicor’s request. They contended much of the rate increase was intended to enrich stockholders and executives at Nicor and its owner, Southern Co.

“The ink is barely dry on a $168 million rate hike Nicor Gas received just seven weeks ago, and now the utility has got its hands in our pockets again, asking for its sixth hike since 2017,” said CUB Executive Director Sarah Moskowitz. She said CUB will challenge the request.

The ICC has 11 months to review this request.