(The Center Square) – A record-setting rate hike request by an Illinois gas utility is being challenged by consumer advocacy groups.
Nicor Gas has filed a $309 million rate hike proposal with the Illinois Commerce Commission (ICC).
According to the Public Interest Research Group (PIRG), Nicor last increased rates by $228 million in December 2023. With the 2023 rate hike, Nicor’s charges for gas delivery to customers more than doubled in the span of six years.
The ICC is in the midst of a “Future of Gas” proceeding to consider the future of gas utilities in Illinois given the state’s goal of economy-wide 100% clean energy usage by 2050.
“I think they anticipate the current business model is going to change so they’re working to raise rates as fast as they can,” said Illinois PIRG Director Abe Scarr.
As Nicor’s fifth request in the past decade, the rate hike would go down as the largest in Illinois history.
The Citizens Utility Board (CUB) is also rallying against the proposal, noting that Nicor has received a total of about $724 million in rate hikes since 2018.
“CUB will challenge this unfair rate hike – we urge state regulators to slash Nicor’s reckless spending and hold the company accountable,” said CUB Executive Director Sarah Moskowitz. “Gas is unsustainably expensive and it threatens our health and climate. State officials must begin to plan for the long-term transition away from gas to heating alternatives that are cheaper, safer and more reliable.”
If approved later this year, the rate hike would raise the average person’s bill by about $7.50 each month.
Nicor issued a statement regarding the rate hike request.
“Many Americans are facing challenging times, and no one wants to see rising energy bills. We want our customers to understand their bills and why the company is requesting to adjust rates that would allow Nicor Gas to meet those energy demands, especially during extreme weather,” the statement read.
The ICC has 11 months to review rate hike proposals.
This article was originally published at www.thecentersquare.com
