#United States #Chicago #Illinois #Citizens Utility Board #Nicor Gas

Citizens Utility Board's Firm Stance Against Nicor Gas Rate Hike

In a bold move, the Citizens Utility Board (CUB) has voiced its strong opposition to Nicor Gas’s recent request for a staggering rate hike totaling approximately $308.6 million, which actually approaches $325 million when including taxes. CUB argues that this proposed increase is unreasonable and an exploitation of consumers, especially as the company claims it needs the additional funds to cover operational costs and ensure shareholder profits.

Personal Impact of the Proposed Hike

This latest proposal marks yet another significant request for a rate increase from Nicor, which has sought such hikes five times in less than a decade. Since 2018, Nicor has increased gas delivery charges by a shocking $724 million, making it difficult for Illinois residents to manage their utility bills. The proposed increase, expected to add around 20% to the standard monthly customer charge, would see bills rise to $23.41 per month, with the per-therm distribution charge jumping to 26.84 cents — a 26% increase. Thus, many customers find themselves struggling with escalating utility costs, raising concerns over affordability, especially as winter approaches and heating becomes a necessity.

A History of Rate Hikes

Historically, Nicor has initiated several significant rate increases: from $208 million in 2017 to $230 million in the following year, with requests continuing to rise, culminating in a massive request of about $320 million in 2023. The cumulative effect of these hikes is staggering, contributing to the overall burden felt by consumers who rely on Nicor for essential heating services. The upcoming request, if approved, would set a new record for gas utility rate hikes in Illinois, further drawing criticism from watchdog organizations like CUB.

Warning for Consumers

It's crucial for consumers to understand that even if they switch to an alternative gas supplier, they will still be liable for Nicor's delivery charges. Many buyers may be misled by sales representatives suggesting they can avoid rate hikes by changing suppliers. CUB encourages all residents to be vigilant and well-informed about their utility options and potential rates.

CUB's Call to Action

Executive Director Sarah Moskowitz conveyed CUB’s determination to confront this unjustifiable rate hike, urging state regulators to scrutinize Nicor’s excessive expenditures and to hold the company responsible for its actions. CUB firmly believes that heating is a basic human need and should not be used as a tool for profit maximization at the expense of households in Illinois.

Additionally, CUB emphasizes the need for state officials to strategize a long-term shift from gas to more sustainable and affordable heating solutions. The rising costs of gas pose significant risks to both public health and the environment, necessitating an urgent reassessment of heating strategies.

For consumers facing difficulties, CUB points out available assistance programs and payment plans to help manage their energy expenses. They encourage individuals to reach out to utility providers to find out what resources they may qualify for, along with contacting the Help Illinois Families call center to explore options under the Low Income Home Energy Assistance Program (LIHEAP).

Conclusion

CUB remains steadfast in its mission to advocate for the rights of utility customers and to protect them from undue financial strain. With Nicor Gas serving more than 2.2 million residential and business customers across the state, the implications of this proposed rate hike extend far, impacting countless families in Illinois struggling to maintain warmth and comfort in their homes. As discussions progress, CUB will continue to monitor developments closely and fight for fairer utility rates for all Illinois residents.