Nicor Gas has received approval to raise its delivery rates on customers by about $167 million, which is about half of the utility’s initial request of $314 million.
“It’s really important to know that this request was made with a lot of careful thought and consideration,” said Jennifer Golz, a spokesperson for Nicor Gas.
How much more customers will be charged and how soon it will start is still unclear, though the company said early estimates indicate an increase of less than $4.25 per month or less than 5% annually on a total bill for “a typical residential customer.”
Nicor Gas initially requested a rate hike of $314.3 million, but on Wednesday, the Illinois Commerce Commission (ICC) approved a lower rate increase, cutting $146.5 million from that number.
“The ICC’s responsibility is to balance the interests of Illinois’ utilities and their consumers. We recognize that any decision impacting Illinoisans’ bills is not a small one, and after careful review of Nicor’s proposed investments, the Commission opted to strike excess charges and approve necessary and justified projects,” said ICC Chairman Doug Scott.
Consumer watchdog groups like Citizens Utility Board and Illinois PIRG are speaking out against another rate increase, however.
“This is the fifth time that Nicor has raised its rates since 2017,” said Sarah Moskowitz, executive director of Citizens Utility Board. “They have increased their rates by over $700 million since 2017.”
“The last big one was from People’s Gas just over $300 million, so this one would have been bigger than that and would have set the record for gas utilities,” said Abe Scarr, director of the Illinois Public Interest Research Group.
Scarr said while his group is “very pleased it’s a lower rate hike than proposed” Nicor customers in Illinois “are still paying a lot more for delivery rates.”
Utility gas prices are up nearly 12% nationwide from a year ago while overall consumer prices are up 3% during that same time, according to the latest numbers from the U.S. Bureau of Labor Statistics.
“Any rate increase is going to be too much right now. We’re already in the midst of winter heating season. Folks are struggling,” said Moskowitz with Citizens Utility Board.
It comes as a Bank of America study shows nearly a quarter of U.S. households are living paycheck to paycheck.
“Every business decision we make we do so with trying to provide the highest integrity and most consistent energy service while also providing an affordable cost,” said Golz.
Nicor Gas says it offers assistance on its website for customers who are struggling to pay their bills, with Golz saying the company is “committed to everything we can do to help our customers manage their energy cost.”
“What we’re doing in the immediate is help all of our customers manage those bills through energy assistance programs, helping homes become more energy efficient,” said Golz.
Nicor is owned by Southern Company which reported earnings of $4.4 billion dollars last year, up from $4 billion the year before.
“Meanwhile, [Nicor’s] parent company Southern Company is raking in record profits and they’re definitely not hurting, while Nicor customers definitely are hurting,” said Moskowitz with Citizens Utility Board.
Hence then, the article about nicor gas gets approval for 167m rate hike what that could mean for bills was published today ( ) and is available on NBC Chicago ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Nicor Gas gets approval for $167M rate hike. What that could mean for bills )
Also on site :
- PIN Stockholder Alert: Shareholder Rights Law Firm Robbins LLP Reminds Investors of the Class Action Lawsuit Against Pinterest, Inc.
- ‘Murphy Brown’ Star Jessie Jones Dead at 75
- Spain’s FA condemns Islamophobic chants during game with Egypt