The Illinois Commerce Commission has approved a general rate hike for Nicor Gas, the first such hike in nearly a decade.
The commission approved a $137.1 million revenue increase for the company in a 5-0 vote on Wednesday. The revenue increase will result in a nearly 21 percent increase in general rates for natural gas customers, according to a statement released by the ICC.
Those rates are lower than those originally requested by the company, which sought $208.5 million in additional revenue, which would have resulted in a nearly 33 percent increase in customer general rates.
That rate increase will result in an average increase of $2 per month per customer, according to the commission, but the actual number could vary depending on the customer’s location and the amount of energy consumed.
The increased rates are scheduled to go into effect next week, according to the company. It is the first increase in the general rate for natural gas since 2008.
The Citizens’ Utility Board, which was lobbied for a lower rate increase by Nicor, will appeal the decision, according to a statement. They will petition for the commission to re-hear the case based on what they deem an excessive Return on Equity valuation that figured into the rate increase.
According to the ICC, Nicor delivers gas to 2.2 million homes and businesses in more than 650 Northern Illinois communities.
