Northern Illinois Gas Customers Brace for Rising Costs Amid Rate Hikes and Supply Price Surges

Tough Times for Northern Illinois Gas Customers

Recent analysis from consumer advocates highlights a dire situation for gas customers in northern Illinois, where supply prices have surged between 15% and 56% compared to last year. This troubling trend points to an ongoing affordability crisis, compounded by a recent rate hike imposed by Nicor Gas and a forthcoming increase from Peoples Gas anticipated in 2026. These developments arrive at a particularly challenging time when residents are already grappling with rising costs for essential items like groceries and healthcare.

“This amounts to a double-whammy for gas customers—the volatile market is hitting them with price spikes on one part of the bill, while utilities continue their aggressive spending to jack up rates on another part of the bill,” warned Sarah Moskowitz, the executive director of the Citizens Utility Board (CUB). The origin of these rising costs can be traced to a mixture of increased supply prices and frequent utility rate hikes that have burdened households across the region.

Nicor Gas and Peoples Gas Rate Changes

In a recent review of the gas market in Illinois, it was revealed that Nicor Gas is executing its fifth rate increase within a decade. Customers will feel the impact of a $167.8 million hike, which was slightly reduced by state regulators but still translates to about $4.25 more per month for average bills.

Meanwhile, Peoples Gas has also become a source of concern, increasing its delivery rates by an astounding 98% since 2011, including a record $306 million spike approved in late 2023. With another rate increase planned for 2026, many families fear that their gas bills will continue to escalate.

Supply Prices and Consumer Strain

The gas supply prices play a significant role in the overall cost that consumers are facing. For instance, December supply prices for Nicor Gas have reached 39 cents per therm, marking a staggering 56% increase from last year. Similarly, customers of Peoples Gas have seen their supply prices exceed December figures from a year ago by roughly 28%, with current charges hovering at 40.63 cents per therm.

The implications of these surging prices are deeply troubling. Affordability statistics indicate that, as of October 2025, over 203,000 customers are past due on their bills, with nearly 38,000 receiving disconnect notices. This financial strain is mirrored in the profit margins of the utilities. Nicor’s parent company recorded profits exceeding $3.9 billion in just the first nine months of the year, while Peoples Gas' parent company profited approximately $1.24 billion during the same period.

The Call for Change

As Illinois residents confront these challenges, advocates release a clarion call for reforms. “Gas utilities took advantage of a decade of relatively low gas prices to spend excessively, driving up delivery rates and profits,” stated Abe Scarr, Director of Illinois PIRG. He emphasized the urgent need for investments in energy efficiency and a transition to cleaner, safer energy sources.

Conclusion

With predictions of further escalations in gas prices, the need for consumer awareness and engagement is paramount. Organizations like CUB are stepping up to provide crucial support for Illinois households, aiming to protect their interests and ensure that the basic need for energy does not become unaffordable. For those who wish to seek assistance or learn more about their rights as consumers, CUB provides resources and a consumer hotline to navigate these rising costs effectively.

For more information, call the Citizens Utility Board’s Consumer Hotline at 1-800-669-5556 or visit their official website at www.CitizensUtilityBoard.org.