Three watchdog agencies decry proposed $221 million Nicor Gas rate increase
Three consumer and environmental protection agencies shared their testimony against Nicor’s proposed rate hike, warning it would cost consumers an additional $221 million annually.
Representatives from Illinois PIRG (Public Interest Research Group), Environmental Defense Fund and the Citizens Utility Board (CUB) spoke during Monday’s online news conference.
They noted that Nicor's hike, proposed in January, came just seven weeks after the company received a $168 million increase. Regulators had cut that request in half.
This new hike marks Nicor's sixth since 2017. Since then, the company has raised delivery rates by 137%, totaling $898 million. Meanwhile, its parent company, Southern Co., made over $29 billion in profits.
Abe Scarr, director of Illinois PIRG, emphasized that while private profits are allowed, regulators must protect the public interest.
He pointed out Nicor’s spending surged in 2015 due to retiring cast-iron pipes. With that program ending in 2023, costs should have dropped significantly. This is why regulators are being called upon again.
CUB Communications Director Jim Chilsen stated the requested hike is five times what Nicor can justify. While gas supply costs fluctuate, the delivery costs, which make up half to two-thirds of bills, are worsening the impact on consumers.
If approved, this request would raise bills by 7%, or about $6 monthly.
“This is an important affordability issue,” he said.
CUB General Counsel Eric DeBellis mentioned over 2,000 families are behind on their Nicor bills, with $117 million in overcharges identified.
“We’re asking the commission to make this wealthy monopoly live within its means like the rest of us,” DeBellis said.
Curt Stokes, senior attorney for the Environmental Defense Fund, noted the Illinois Commerce Commission had asked Nicor to explore non-pipeline alternatives to make energy delivery cheaper and cleaner. He said the company hasn’t shown real interest in these alternatives.
In a statement after the news conference, CUB Executive Director Sarah Moskowitz said, “Nicor’s serial rate hikes have been a hardship for customers, and our expert testimony reveals that once again Illinois’ largest gas utility wants to make customers pay even more for wasteful sending, lavish executive bonuses and an egregious profit rate for shareholders. Nicor customers can’t afford this rate hike.”
Nicor’s Manager of PR and Media Relations Jennifer Golz also released a company statement in response to the news conference.
“As Illinois faces growth and changes in the energy landscape, our commitment to serving 2.3 million customers remains steadfast,” the statement reads. “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.”