Consumer advocates blast gas utility for pipeline spending, proposed
rate hike
[May 09, 2025]
By Jim Talamonti | The Center Square
(The Center Square) – Consumer groups say Nicor customers could face a
record rate increase if the gas utility doesn’t reduce unnecessary
spending on infrastructure.
Nicor has asked the Illinois Commerce Commission for a $308.6 million
rate hike.
Citizens Utility Board Executive Director Sarah Moskowitz said the
proposal includes a lavish profit rate for Nicor shareholders and
wasteful spending on executive bonuses.
“We urge the ICC to stand up for Nicor customers and slash the utility’s
request for a record rate hike,” Moskowitz said.
Public Interest Research Group Illinois Director Abe Scarr recommended
that Nicor cut $80 million from its planned pipeline spending.
“Our experts found that Nicor has failed to sufficiently justify some of
its infrastructure spending because it did not meaningfully consider
alternatives to pipe replacement. These alternatives include advanced
repair, relining and non-pipe alternatives,” Scarr explained.
Scarr joined CUB in urging the ICC to reject the proposed rate increase.
“We’re calling on Nicor and the utility regulators at the ICC to move
beyond business as usual and to consider alternatives to pipe
replacement,” Scarr said.
The Environmental Defense Fund joined CUB and PIRG in opposing Nicor’s
rate-hike request.
EDF senior attorney Curt Stokes said Nicor has not met decarbonization
goals. Stokes said the company’s TotalGreen pilot program has only 131
customers participating.
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“The cost for each customer is over $2,400 per customer, and it
simply won’t be enough to offset the 24 million metric tons of CO2
per year emitted by burning the methane gas that’s delivered by
Nicor,” Stokes said.
Nicor’s TotalGreen pilot program invites customers to pay a premium
on monthly bills to lower their carbon footprint via carbon offsets
and renewable natural gas credits. Stokes said the administrative
costs add up to more than $2,400 per customer.
Nicor responded to the CUB, PIRG and EDF claims with a statement to
The Center Square.
“With safety and reliability in mind, Nicor Gas is making continued
investments to help ensure a secure energy supply through the
replacement of aging infrastructure,” the statement read. “We
continue to leverage the latest technologies to prevent, identify
and mitigate operational emissions while also focusing on affordable
decarbonization that includes both gas and electric solutions that
can be faster, less expensive and less risky than an
all-electrification approach.”
The company’s statement said that natural gas is three times more
affordable than other energy sources.
“Nicor Gas has filed a request of $309 million with the ICC. If
approved, the typical residential customer would see an
approximately $7.50 per month increase in their energy delivery
charge, or about a 9.05% annual increase. Nicor Gas’ distribution
rates remain among the lowest of any major gas company in Illinois
and under the proposed rates, the total bill for an average
residential customer continues to remain in line with the Consumer
Price Index,” the statement concluded.
The ICC is expected to rule on Nicor’s rate request in November. |
