Nicor Gas customers in northern Illinois are expected to pay more after the Illinois Commerce Commission sharply scaled back the utility's latest rate-hike request.
The commission approved an $81.6 million annual increase, far below the $220.8 million Nicor had sought.
Here's what to know
Starting November 16, Nicor's fixed monthly base charge will fall from $21.30 to $15. Still, higher usage-based fees are expected to leave the typical residential customer paying about $26 more per year overall, according to The Korea Daily.
Bills will vary based on how much gas each customer uses, and the final increase is about 63% lower than what Nicor originally proposed.
With Nicor customers facing that average $26 yearly increase, going solar is one of the best ways to save money on home energy. Readers can use EasyHome's free explorer tool to compare pricing and estimated savings from vetted installers in their area.
More background
Illinois PIRG said customer rates have risen about 150% and argued that unnecessary fossil-fuel infrastructure spending has increased what people pay.
Coal and natural gas power plants contribute to air and water pollution linked to asthma, heart disease, cancer, and premature death, while families that remain dependent on those fuels can also face persistently high energy costs rather than benefiting from more abundant energy sources such as sunlight and wind.
In Illinois, frustration over another Nicor increase reflects how infrastructure decisions can keep ratepayers tied to expensive fossil fuel systems.
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What's being done?
Regulators set Nicor's allowed return on equity at 9.48%, below the 10.35% the company had requested, yet higher than the 8.95% that consumer advocacy groups demanded.
The company also agreed to examine, over a 10-year period, whether cheaper alternatives exist for some aging pipeline replacement work and to consult with relevant organizations about using internal pipeline reinforcement techniques.
The proposal no longer includes support for executive incentive compensation. For northern Illinois homeowners seeking protection from future Nicor bill increases, EasyHome's free explorer tool shows local solar pricing and savings estimates from vetted installers. It can also help readers explore backup battery storage; pairing solar with a battery lets homeowners maximize savings and power their home with solar when the grid goes down.
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