Illinois Attorney General, Nicor Agreed to Rate Hike
The negotiated agreement reduces a proposed $221 million natural gas rate increase to $81.6 million.
Updated on Sept. 23, 2026 in Utilities
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The Illinois Attorney General and Nicor have reached an agreement to lower a requested rate hike to $81.6 million. This follows an original proposal from the utility company for a $221 million increase.
Why it matters
Nicor maintains that the additional funding is necessary to support essential infrastructure improvements, upgrade technology, and ensure the ongoing security of its distribution system.
The agreement sets a $15 monthly service charge, down from the previous $21.30. Typical homeowners will see a 2.49 percent increase in natural gas delivery costs, amounting to $2.21 more per month.
The players
Nicor
Nicor is a major utility company that provides natural gas to over 2 million customers through 34,000 miles of underground distribution lines in Illinois.
Illinois Attorney General
The Illinois Attorney General is the chief legal officer for the state and serves as a representative for consumer interests in utility regulatory matters.
Illinois Commerce Commission
The Illinois Commerce Commission is the state regulatory body responsible for overseeing public utilities and setting rates for essential services.
The details
Nicor operates 34,000 miles of underground distribution systems serving over 2 million customers. The Illinois Commerce Commission recently held a public hearing at Lake Park West High School in Roselle to gather input on the proposed terms.
Timeline
September 15, 2026: A public hearing was held at Lake Park West High School in Roselle.
December 2, 2026: The Illinois Commerce Commission is scheduled to vote on the proposed rate hike.
Market Landscape
This agreement follows the standard regulatory process mandated by the Illinois Public Utilities Act to balance utility infrastructure investment needs with consumer affordability. It reflects a broader trend of regulatory scrutiny regarding capital expenditure requests from large-scale regional utility providers.
The agreement will change the monthly service charge for customers to $15 and increase typical monthly delivery costs by $2.21. These adjustments represent the direct impact on household utility budgets should the commission approve the deal.
The takeaway
Consumers should be aware that while the negotiated hike is significantly lower than the initial proposal, it still represents an increase in recurring monthly expenses. Monitoring the commission's December decision will provide clarity on final billing adjustments.
What happens next
The Illinois Commerce Commission will hold a final vote on the proposed $81.6 million rate hike agreement on December 2, 2026.
Further reading
For more information on state utility oversight, see the Illinois Utilities section.
Source note: This article includes information reported by Chronicle Media.
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