Illinois Residents Rally Against Nicor Gas's Unprecedented Rate Hike Proposal at State Forum

Illinois Residents Join Forces Against Nicor Gas's Rate Increase

Tonight, residents in Illinois will gather to express their discontent over Nicor Gas's proposal for a staggering $316.5 million rate hike. Taking place at the Hemmens Cultural Center in Elgin, the public forum is a manifestation of growing frustrations among customers who feel burdened by rising utility costs.

Since 2017, Nicor has proposed five significant rate increases, accumulating a total of 114 percent in delivery rate hikes that have cost consumers nearly $747 million. Advocacy groups, including AARP Illinois, the Citizens Utility Board (CUB), and Illinois PIRG, have consistently challenged these hikes, claiming they disproportionately affect vulnerable populations, especially older adults living on fixed incomes.

The Illinois Commerce Commission (ICC) is set to oversee the forum requested by AARP Illinois, offering a platform for residents to voice their opinions. The event aims to shed light on how the current proposal from Nicor could precipitate a 9 percent rise in average gas bills - a financial hit averaging $7.70 monthly or over $92 annually for consumers.

The Economic Impact of Rate Increases

Utility watchdogs have raised alarms about various aspects of Nicor's request. For instance, they argue the increase in the company's proposed Return on Equity (ROE) from 9.51 percent to 10.35 percent would unjustifiably cost customers an additional $47.4 million each year. When combined with Nicor's intentions to extend wealth across more shareholders, it would tax customers further, amounting to an astounding total of $76 million.

Moreover, critiques have been directed at lavish executive bonuses that Nicor intends to fund through its consumers’ pockets, an additional burden of $18.1 million a year. CUB's representative Mardi Klevs lamented, "Nicor customers are tired of their gas utility treating them like an ATM. We need customers to tell state regulators loud and clear – Enough is enough."

Community and Advocacy Support

Support for residents isn't just limited to the forum tonight. The Citizens Utility Board and advocates have identified more than $150 million in overcharges that demonstrate how rates have been unjustly inflated. The community has mobilized, with hundreds signing petitions against Nicor or submitting public comments to the ICC voicing their opposition to the proposed rate hike.

Al Hollenbeck, Volunteer State President of AARP Illinois, highlighted that older residents are particularly affected by these financial burdens. Many are already coping with the escalating cost of living, and an increase in gas bills could exacerbate their struggles, along with those faced by many families across the state.

Looking Ahead

The ICC will make a final ruling on Nicor's rate hike in November. If approved, the increase could push the utility's total rate hikes over $1 billion within just a decade. The outcome of the public forum and the community’s mobilization efforts may prove crucial in influencing the Commission's decision.

In essence, tonight’s public forum is more than just a meeting; it represents the collective voice of Illinois residents standing united against unjust economic practices by utility companies. As they gather, it's clear that the call for fairness and accountability in utility pricing resonates deeply within the community.

For more information about AARP's advocacy in Illinois, visit www.aarp.org/IL, and to learn about CUB’s efforts, visit www.CitizensUtilityBoard.org.