CHICAGO, Ill. – Illinois utility regulators have approved a significantly smaller rate increase for Nicor Gas than the company originally requested.
The Illinois Commerce Commission approved a settlement Thursday cutting $139.2 million from Nicor’s proposed $221 million increase in natural gas delivery rates.
The reduction amounts to about 63% of the company’s original request.
The ICC also approved a 9.48% return on equity for Nicor, down from the 10.35% requested by the utility.
The impact on individual bills will vary depending on usage and customer type. Under the settlement, however, the monthly fixed charge for residential customers will decrease from $21.30 to $15.
“The ICC’s responsibility is to balance the interests of Illinois’ utilities and their consumers,” ICC Chairman Doug Scott said. “We recognize that any decision impacting Illinoisans’ bills is not a small one.”
The settlement also maintains changes to Nicor’s low-income discount program previously ordered by the ICC. Nicor agreed to dismiss an appeal of the commission’s 2025 rate case decision as part of the agreement.
Nicor Gas provides natural gas service to about 2.3 million customers across northern Illinois.
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