Nicor Customers Could See Lower Bills Under New Settlement: IL Attorney General

ILLINOIS — A proposed rate increase by Nicor Gas could be reduced by about $140 million under a settlement announced Wednesday by Illinois Attorney General Kwame Raoul.

Nicor had requested a $221 million rate increase in January, which would have represented a 14.5 percent increase over the utility's existing rates. Raoul's office opposed the request, arguing that Nicor had overstated or included unnecessary spending in its projected capital program and had inflated an accounting mechanism that increased its profits, according to a news release from Raoul's office.

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The settlement would reduce the requested increase by approximately 63 percent, according to Raoul's office. The agreement still must be approved by the Illinois Commerce Commission.

One provision would reduce Nicor's monthly fixed charge for customers from $21.30 to $15 beginning on Nov. 16. The change is expected to result in lower monthly bills for most customers during months when natural gas use is lower, according to the news relesae.

The settlement also would reduce the profit Nicor is permitted to earn on infrastructure investments. That would lower the portion of customer rates used to compensate the utility's shareholders, according to the attorney general's office.

"Our settlement ensures Nicor can continue to retain good jobs in Illinois while protecting consumers from drastic rate increases," Raoul said in a statement. "My office's Public Utilities Bureau will continue to fight to ensure all customers are paying fair and reasonable rates for their utilities."

As part of a separate supplemental agreement, Nicor also agreed to protect union jobs through next year. The agreement includes more than 1,500 jobs held by members of I.B.E.W. Local 19 who work throughout Illinois.

"I deeply appreciate over 1,500 jobs of I.B.E.W. Local 19 members working throughout Illinois being considered and protected with the results of the Nicor Gas rate case," said Andy Nacke, president, business manager and financial secretary of I.B.E.W. Local 19.

The settlement also addresses a previous Nicor rate increase. In November 2025, the Illinois Commerce Commission approved a $168 million rate increase for Nicor, representing a 12.1 percent increase over 2024 rates.

Nicor has appealed that decision, but the new settlement requires the utility to withdraw its appeal. Raoul's office said dismissing the appeal will protect customers from potential additional rate increases if Nicor were to prevail in court.