CHICAGO – Attorney General Kwame Raoul today announced his office has secured a settlement with Northern Illinois Gas Company (Nicor) that cuts the natural gas utility’s requested rate increase by 63% - a reduction of approximately $140 million.
In January, Nicor filed for a $221 million rate increase, representing a 14.5% increase over current rates. Raoul’s office opposed this increase, alleging that significant portions of Nicor’s forecasted capital spending program were overstated or unnecessary and that the utility inflated a routine accounting mechanism to bolster its profits. The settlement cuts the utility’s requested rate increase by approximately $140 million.
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“Our settlement ensures Nicor can continue to retain good jobs in Illinois while protecting consumers from drastic rates increases,” Raoul said. “My office’s Public Utilities Bureau will continue to fight to ensure all customers are paying fair and reasonable rates for their utilities.”
The settlement, which requires approval by the Illinois Commerce Commission (ICC), will also ensure most Nicor customers see a monthly bill decrease during non-heat months by reducing the fixed charge that customers pay every month regardless of the amount of natural gas they use. The monthly fixed charge will go down from the current rate of $21.30 to $15.00 beginning Nov. 16.
The settlement also requires Nicor to accept a reduction in the profit it is allowed to make on its infrastructure investments, benefiting consumers by reducing the portion of rates used by Nicor to pay shareholders.
In addition to protecting consumers, in a separate supplemental agreement reached by Raoul’s office, Nicor pledged to protect union jobs through next year.
“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/Financial Secretary of I.B.E.W. Local 19. “This is another example of the importance of labor continuing to have a seat at the table.”
Nicor’s January rate hike request came shortly after a November 2025 order by the ICC approving a rate hike of $168 million, representing a 12.1% increase over 2024 rates. This settlement requires Nicor to withdraw its pending appeal of this order. Dismissing the appeal protects Nicor customers from possible future rate increases if Nicor were successful in court.
Bureau Chief Susan Satter, Deputy Bureau Chief Christopher J. Kim, and Assistant Attorneys General Samuel Lukens and Taso Tsiganos handled the case for Raoul’s Public Utilities Bureau.
