The Illinois Commerce Commission on Wednesday approved a settlement striking $139.2 million from Nicor Gas's request to raise rates for natural gas delivery services.
The decision cuts Nicor's initial $221 million requested increase by roughly 63 percent, according to the ICC. The commission also approved a 9.48 percent return on equity, down from the utility's requested 10.35 percent.
The ICC said the overall impact on individual customers will vary based on service class and energy usage. The decision reduces residential customers' monthly fixed charge from $21.30 to $15.00.
"The ICC's responsibility is to balance the interests of Illinois' utilities and their consumers," said ICC Chairman Doug Scott. "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."
The commission said the settlement was reached by all parties to the case. The decision reinforces the ICC's 2025 directive that Nicor adjust its low-income discount to maintain a 3 percent energy burden for all customers, which the commission called the nationally recognized measure of affordability.
As part of the approved settlement, the ICC said, Nicor agreed to dismiss its pending appeal of the commission's 2025 rate case decision.
The ICC said the rate case process is designed to ensure utilities receive the funds needed to provide safe and reliable service at a reasonable cost. Under the Illinois Public Utilities Act, those costs are only recoverable if the utility demonstrates they are reasonable and prudent.
Help for customers
The ICC said customers struggling to pay their utility bills are encouraged to apply for the state's Low-Income Home Energy Assistance Program, known as LIHEAP, and to check their eligibility for Nicor's Low-Income Discount program.
Consumers who need help resolving a utility dispute can call 800-524-0795 or file an online complaint through the ICC website.
Nicor Gas delivers natural gas to 2.3 million customers across northern Illinois, according to the commission. More information on the rate case is available under Docket No. 26-0099.
Source: the original release