Illinois Commerce Commission Approves Reduced $82 Million Nicor Rate Hike

The Illinois Commerce Commission approved a settlement on Thursday that grants Nicor Gas an $82 million rate increase, significantly reducing the utility's original request of $221 million. The approved hike, which will take effect in November, will add approximately $2 to $2.21 to monthly residential bills. As part of the agreement, the commission reduced the monthly fixed charge for residential customers from $21.30 to $15 and established a 9.48% return on equity for shareholders, down from the 10.35% Nicor sought.

Nicor Gas agreed to dismiss a pending appeal of a 2025 rate case decision and maintain previously ordered adjustments to its low-income discount program to ensure a 3 percent energy burden for customers. The approved funds will support infrastructure projects, including the replacement of 45 miles of distribution pipeline and repairs to over 400 miles of transmission pipeline.

A supplemental agreement between Nicor and Illinois Attorney General Kwame Raoul commits the utility to maintaining current union staffing levels through 2027. While the commission accepted the deal, it clarified that it is not bound by these labor terms in future rate-making determinations. Illinois PIRG described the outcome as a partial win, though the group expressed concern over a pattern of excessive spending on fossil fuel infrastructure. Nicor is expected to submit another rate hike request in January.