Consumer advocates challenge Nicor’s proposed $221 million rate hike

Consumer and environmental advocacy groups are urging Illinois regulators to reduce Nicor Gas’ latest proposed rate hike, arguing customers are already facing an affordability crisis after years of rising utility costs.

The Citizens Utility Board, Illinois PIRG and the Environmental Defense Fund outlined their concerns Monday during a virtual news conference focused on Nicor’s request for a roughly $221 million increase before the Illinois Commerce Commission.

According to CUB, the proposal marks Nicor’s sixth rate-hike request since 2017.

The groups say Nicor customers saw delivery rates increase by 137% between 2017 and 2025, totaling about $898 million.

“NICOR has been a rate hike machine over the last decade,” Jim Chilsen, communications director for the Citizens Utility Board, told WBBM Newsradio. “They’ve increased bills five times by about 137 percent, totaling nearly $900 million.”

The groups argue the latest proposal includes excessive shareholder profit rates, executive bonuses and unnecessary spending.

CUB said its expert testimony identified more than $117 million in alleged overcharges within the filing.

“Our expert testimony reveals that once again, Illinois’ largest gas utility wants to make customers pay even more for wasteful spending, lavish executive bonuses and an egregious profit rate for shareholders,” Chilsen said.

In a statement to WBBM Newsradio, Nicor said it is reviewing the filings and working to “keep bills as low as possible” while investing in infrastructure and reliability.

The company also said natural gas remains “a critical, essential and stable resource” as energy demand and electricity costs increase in Illinois.

Nicor said natural gas remains a key energy source in Illinois, with about 90% of households in its service territory relying on it for heat.

The Illinois Commerce Commission is expected to decide the case later this year.