Illinois regulators approve $139 million cut to Nicor Gas rate request
- Settlement cuts Nicor's $221 million request by roughly 63%
- Return on equity lowered from 10.35% requested
- Residential monthly fixed charge falls from $21.30 to $15.00
Photo: Wikimedia Commons - Larry D. Moore, CC BY 4.0What changed The decision reduces residential customers' monthly fixed charge from $21.30 to $15.00.
CHICAGO, Oct 15 — The Illinois Commerce Commission (ICC) on Thursday approved a settlement making a $139 million cut to Northern Illinois Gas Company's (Nicor) rate request for natural gas delivery services, accepting an agreement reached by all parties in the case.
The settlement reduces Nicor's initial $221 million requested increase by roughly 63% and approves a return on equity (ROE) lower than the 10.35% ROE the utility had requested, the commission said.
The impact on individual customers will vary by service class and energy usage, according to the ICC. The decision reduces residential customers' monthly fixed charge from $21.30 to $15.00.
"We recognize that any decision impacting Illinoisans' bills is not a small one, and after careful review of Nicor's proposed investments, the Commission is pleased that all parties came to the table and opted to strike excess charges," ICC Chairman Doug Scott said.
The ICC said the decision reinforces its 2025 directive that Nicor adjust its low-income discount to maintain a 3% energy burden for all customers, which the commission called the nationally recognized measure of affordability.
As part of the settlement, Nicor also agreed to dismiss its pending appeal of the ICC's 2025 rate case decision, the commission said.
Under the Illinois Public Utilities Act, utility costs are only recoverable if the utility demonstrates they are reasonable and prudent, according to the ICC.
Nicor Gas delivers natural gas to 2.3 million customers across northern Illinois. The rate case is Docket No. 26-0099.