{"id":44242,"date":"2025-12-11T10:57:02","date_gmt":"2025-12-11T16:57:02","guid":{"rendered":"https:\/\/www.citizensutilityboard.org\/?p=44242"},"modified":"2025-12-11T11:56:00","modified_gmt":"2025-12-11T17:56:00","slug":"tough-times-for-northern-illinois-gas-customers-supply-prices-up-15-56-nicor-hits-customers-with-rate-hike-peoples-gas-plans-one-in-2026s-increase-in-2026","status":"publish","type":"post","link":"https:\/\/www.citizensutilityboard.org\/blog\/2025\/12\/11\/tough-times-for-northern-illinois-gas-customers-supply-prices-up-15-56-nicor-hits-customers-with-rate-hike-peoples-gas-plans-one-in-2026s-increase-in-2026\/","title":{"rendered":"Tough times for northern Illinois gas customers: supply prices up 15-56%, Nicor hits customers with rate hike, Peoples Gas plans one in 2026"},"content":{"rendered":"

A new analysis by consumer advocates Thursday shows that December supply prices charged by northern Illinois gas utilities are about 15 percent to 56 percent\"\" higher than they were at the same time last year \u2013\u00a0 a surge that highlights misleading claims by at least one utility that low fuel costs would offset a record rate hike it proposed. (Read the full Thursday, Dec. 12 news release<\/a><\/strong> from the Citizens Utility Board and Illinois PIRG.)<\/p>\n

The findings from a \u201cstate of the Illinois gas market\u201d review come as Nicor Gas just hit customers with their fifth delivery rate hike in less than a decade, and Peoples Gas announced plans to push for a new hike in 2026, just three years after receiving the largest gas increase in Illinois history.<\/p>\n

At a time when consumers are paying inflated costs for necessities such as groceries and healthcare, consumer advocates warn that the combination of escalating heating gas prices and serial rate-hike proposals by the region\u2019s gas utilities are likely to exacerbate hardships for Illinois households this winter.<\/p>\n

\u201cThis amounts to a double-whammy for gas customers\u2014the volatile market is hitting them with price spikes on one part of the bill, while utilities continue their aggressive spending to jack up rates on another part of the bill,\u201d said Sarah Moskowitz, executive director of the nonprofit utility watchdog Citizens Utility Board (CUB). \u201cWhile gas utilities enjoy excessive profits, we have serious concerns about the well-being of heating customers this winter.\u201d<\/p>\n

The price spike exposes a misleading forecast Peoples Gas publicized in 2023 when, in an effort to pacify concerns about the record-breaking $402 million rate hike the utility had proposed, company officials claimed <\/a><\/u><\/strong>that lower gas supply prices would defray the increase it sought on the delivery side of bills. Although state regulators cut the rate hike significantly, Peoples Gas still eventually received a record $306 million delivery increase, which began to hit customers in December 2023\u2013and the purportedly low gas prices were only temporary.<\/p>\n

Nationally, gas prices recently hit a three year high<\/strong><\/a><\/u>. Analysts predict<\/a><\/u><\/strong> prices will rise higher and grow more volatile as increasing volumes of fuel are exported through liquefied natural gas facilities. The U.S. is expected to nearly double gas exports over the next five years.<\/p>\n

\u201cGas utilities took advantage of a decade of relatively low gas prices to spend excessively, driving up delivery rates and utility profits,” said Illinois PIRG Director Abe Scarr<\/a><\/u><\/strong>. \u201cBecause of that, modest increases in the cost of gas hit customers much harder. As gas prices look to rise even higher and grow more volatile, gas utility customers are vulnerable to spiking home heating bills. That\u2019s why it’s important to invest in energy efficiency, rein in rate hikes and transition to safer, cleaner energy to heat our homes.\u201d<\/p>\n

Major charges on gas bills are divided among supply and delivery fees. The utilities pass supply costs\u2013the price for\u00a0\u00a0buying the actual fuel\u2013onto customers, with no markup. Delivery charges cover the utilities\u2019 cost of delivering gas to homes through their pipe network\u2013plus a profit. Under utility regulation, the gas companies earn a return on their infrastructure investments, incentivizing them to spend aggressively and push for rate hikes in recent years.<\/p>\n

The following review shows consumers in the Chicago region and across northern Illinois face affordability challenges caused by elevated gas supply prices as well as aggressive utility rate-hike campaigns.<\/p>\n

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Nicor<\/u><\/strong><\/p>\n

Delivery rates (roughly two-thirds of gas bills):<\/strong> In November, the Illinois Commerce Commission (ICC) slashed Nicor\u2019s rate-hike request by 47 percent, but the company still received a $167.8 million increase, which means customers will pay an average of about $4.25 a month in higher bills. Since 2017, Nicor has increased delivery rates five times, for a total of $898 million, or 137 percent.<\/p>\n

Supply rates (roughly a third of gas bills): <\/strong>Gas prices in 2025 were higher than last year in 10 out of 12 months, by a range of about 3 percent to 71 percent. Nicor\u2019s December gas supply price of 39 cents per therm is 56 percent higher than last December.\u00a0\u00a0<\/strong><\/p>\n

Affordability Statistics, October 2025 (Source: ICC): <\/strong><\/p>\n