Speakers give pros, cons against Nicor gas price increase request

At least 100 people showed up Thursday night at a public hearing in Elgin about Nicor’s request for a $316 million rate increase for natural-gas customers, a number critics say is its largest ever and not needed.

“The biggest concern for me is that this would be the fifth state-record rate hike in 10 years,” said Deborah Lee Henry. “Our communities cannot afford this.”

She and several others asked the ICC to reject the increase and approve a lower one.

Other speakers, however, supported the rate increase. They included representatives of several plumber and pipefitters’ union, several of Nicor’s trade allies, and Dan Wagner, chairman of the Illinois Chamber of Commerce.

AARP requested the hearing. It, the Citizens Utility Board and Public Interest Research Group oppose the rate increase. According to a news release from the three entities, it would be Nicor’s fifth rate increase since 2017. The release said Nicor has raised delivery rates by 114% in that time period.

They contend much of the rate increase is intended to enrich stockholders and executives at Nicor and its owner, Southern Co. Al Hollenbeck of AARP said Southern has made a $25 billion profit. Another speaker criticized the salary of Nicor’s CEO, and said it should be the company itself paying for improvements, not customers.

Nicor filed its request in January, asking initially for $309 million.

Nicor does not make a profit on the natural gas. It buys gas at prices that fluctuate from month to month. This month, it is 52 cents per therm. In August 2024, it was 36 cents per therm.

Michael Guerra, Nicor’s vice president of external affairs, said the price increase is necessary to provide “dependable, resilient and affordable gas supply, including storage capacity; maintain and modernize its facilities and systems; and “achieve affordable decarbonization.”

A representative of a Lyons senior citizens program said those he spoke with at a luncheon today are worried about paying utility bills. “These are seniors who spend a good deal of their time of the day in their homes either cooking their own meals because they can’t afford to eat out, or in the need of having higher temperatures in their homes in the winter” due to being older, he said.

One man said the commission should deny the rate increase because Nicor should not be spending money on an outdated energy source, he said. The ICC should be transitioning the state away from using natural gas to electrification, he said, citing concerns about pollution and exposure to emissions from burning fuels.

Barbara Hill of Palatine also spoke against the rate increase — on behalf of her neighbors who still use natural gas. She told the judge that she has recently gotten rid of her last natural-gas appliance and no longer uses natural gas at her home.

The Illinois Commerce Commission is expected to rule on the increase in November.