Purchased Gas Adjustment Archives | Citizens Utility Board

CUB’s report on gas market volatility: October

Elizabeth — Wed, 01 Oct 2025 21:31:41 +0000

Gas prices for six of Illinois’ 9 major utilities are elevated, compared with a year ago, led by Liberty Utilities, which is charging a supply price that is about 153 percent higher; Nicor Gas, with a price about 39 percent higher, and MidAmerican Energy, which is charging a price that is about 32 percent higher; according to CUB’s review of October gas prices. Gas prices have been on the rise, with colder-than-normal weather last winter and record gas exports (meaning profit-hungry companies sending gas outside the United States) increasing demand and tightening supply earlier this year. The Energy Information Administration, the statistical arm of the Department of Energy, says it expects wholesale prices to continue to rise into next year, amid “relatively flat” gas production and an increase in U.S. liquefied gas exports. Those market conditions impact the prices individual consumers pay to heat their homes. Gas utilities file supply prices–called the Purchased Gas Adjustment (PGA)–each month with the Illinois Commerce Commission (ICC). Here’s what CUB uncovered in our review of prices in October. Compared with September, six utilities have higher rates: Ameren Illinois (about 2 percent), Illinois Gas (about 10 percent), Mt. Carmel (about 96 percent), MidAmerican (3 percent), North Shore Gas (7 percent), and Peoples Gas (1 percent). Three charged prices that were lower: Liberty Utilities (about 3 percent), Nicor Gas (13 percent) and Consumers Gas (about 15 percent). Compared with October 2024, this month’s prices were higher for six utilities, ranging from about 1 percent higher for Peoples Gas to about 154 percent higher for Liberty Utilities. Three utilities were less than last October: Ameren Gas (about 4 percent), Illinois Gas (about 1 percent), and Mt. Carmel (21 percent). October Gas Prices Ameren Illinois– 47.28 cents per therm (DOWN about 4 percent from October 2024) Consumers Gas– 45.40 cents per therm (UP about 19.5 percent from October 2024) Illinois Gas– 45.88 cents per therm (DOWN about 0.3 percent from October 2024) Liberty Utilities– 48.04 cents per therm (UP about 153 percent from October 2024) MidAmerican Energy– 60.86 cents per therm (UP about 32 percent from October 2024) Mt. Carmel– 65.87 cents per therm (DOWN about 21 percent from October 2024) Nicor Gas– 39.00 cents per therm (UP about 39 percent from October 2024) North Shore Gas– 36.48 cents per therm (UP about 11 percent from October 2024) Peoples Gas– 30.25 cents per therm (UP about 1 percent from October 2024) Note: Your utility is determined by where you live, so you cannot switch from one utility to another. Under Illinois law, gas utilities are not allowed to profit off supply prices—they pass those costs from gas producers and marketers onto customers with no markup. State regulators annually review the utilities’ gas-management procedures to evaluate whether the companies did a reasonable job with their gas purchases, given market conditions, to hold down costs for consumers as much as possible. Regulators can order refunds, although that is rare. A few tips from CUB: Keep the lines of communication open with your utility. If you are having trouble affording your gas bills, it is vital that you contact your utility. […]

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It’s time to consider your Fall gas efficiency upgrades: September 2023 gas prices

Elizabeth — Tue, 29 Aug 2023 15:52:44 +0000

As we approach winter heating season, gas prices for September remain relatively stable, in contrast to the price spikes of a year ago. There is one glaring exception: an 80 percent jump in price from August for Mt. Carmel, a public utility in southeastern Illinois, to 47.49 cents per therm. Also, while most utility prices range from about 19 cents a therm to just under 50 cents a therm, Liberty Utilities, which serves about 30 communities in Central and Southern Illinois, is charging 91 cents a therm in September–still about 21 percent lower than a year ago. In the Chicago region, Nicor, the state’s largest utility, reported just a 5 percent increase from August to September, and Peoples Gas and North Shore Gas, reported 6 percent and 4 percent increases, respectively. The monthly gas prices are a significant factor in our energy costs here in Illinois, where about 80 percent of homes use the fuel. The US Energy Information Agency reports that Midwest homes, notably older homes, consume 34 percent more natural gas than most other U.S. homes. Still, as you can see from the chart, overall gas use has declined over the decades. Gas utilities file supply prices–called the Purchased Gas Adjustment (PGA)–each month with the Illinois Commerce Commission (ICC). Below are the supply prices for September 2023 and how they compare with last September’s prices. Illinois consumers have just emerged from a two-year price spike, caused by a number of factors, including extreme weather and the Russian invasion of Ukraine. We’re hoping the current price stability continues into the winter–and consumers are spared, at least for the immediate future, from a volatile gas market. September Gas Prices Ameren Illinois–40.00 cents per therm (down about 54 percent from September 2022) Consumers Gas–45.36 cents per therm (down about 57 percent from September 2022) Illinois Gas–19.18 cents per therm (down about 78 percent from September 2022) Liberty Utilities–91.32 cents per therm (down about 21 percent from September 2022) MidAmerican Energy–46.94 cents per therm (down about 56 percent from September 2022) Mt. Carmel–47.49 cents per therm (down about 56 percent from September 2022) Nicor Gas–42.00 cents per therm (down about 66 percent from September 2022) North Shore Gas–35.12 cents per therm (down about 62 percent from September 2022) Peoples Gas–31.56 cents per therm (down about 70 percent from September 2022) Note: Your utility is determined by where you live, so you cannot switch from one utility to another. Under Illinois law, gas utilities are not allowed to profit off supply prices—they pass those costs from gas producers and marketers onto customers with no markup. State regulators annually review the utilities’ gas-management procedures to ensure the companies did a reasonable job with their gas purchases, given market conditions, to hold down costs for consumers as much as possible. While the changes aren’t dramatic in September (bar Mt. Caramel), the volatility of the market requires us to monitor prices each month. The expense of gas is one reason we are urging Illinois to begin planning now for the long transition away from gas–check out CUB’s Better Heat guide to learn more about this transition, […]

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Natural gas prices continue decline amid Coronavirus concerns

Hannah — Mon, 04 May 2020 14:20:47 +0000

For the fifth consecutive month, most natural gas utilities have lowered their prices from the previous month as the COVID-19 pandemic disrupts the market. All prices are lower than last May. The price per therm you will pay for natural gas in May, also known as the Purchased Gas Adjustment, or PGA, is shown in the chart below. It includes PGAs from this month, last month and May 2019. Hover your mouse over the graphic to show prices. Illinois Gas has the lowest rate for the month of May—8.2 cents per therm, which is easily one of the lowest rates we’ve seen in our decades monitoring Illinois’ market. Liberty Utilities had the biggest decline in price, dropping by more than a nickel to 25.82 cents per therm. Ameren Illinois’ rate fell about a penny to 29.93 cents per therm, and North Shore Gas came down just a fraction of a cent, to 26.79 cents per therm. Nicor has maintained 26 cents per therm for 5 months. Two utilities raised their rates: Peoples Gas went up by .01 cents to 17.89 and Consumers Gas by about 3 cents, to 30.28 cents. Much like the rest of the economy, the natural gas market is unsteady. The pandemic’s school and business closures “are sufficient to wipe out a significant slice of demand for gas,” according to a report by EBW Analytics Group. The report predicts the declining demand will continue into late spring and early summer as Coronavirus shelter-in-place orders are extended. As always, remember: Utility service territories are geographic, so you cannot switch to another utility. Your utility is determined by where you live. Nicor, Peoples Gas and North Shore Gas customers can switch to alternative suppliers, but that market is plagued by bad deals. Your regulated utility price listed in this article is probably your cheapest option. Click to view previous monthly analyses: April 2020, March 2020, February 2020, January 2020, December 2019.

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