Opponents speak out in Joliet against record Nicor rate hike

People voiced opposition to a record rate $316 million rate hike sought by Nicor Gas during a public hearing in Joliet on Monday night.

Several also objected to the short public notice given by the Illinois Commerce Commission (ICC) for the hearing held at the Billie Limacher Bicentennial Park Theatre.

The total amount of the rate hike actually is up from the $308.6 million at which it was listed when first proposed.

Nicor officials said the higher rate would increase the average gas bill 9.3% or $7.70 a month

Opponents said too much of the money is planned for profits and executive pay without enough consideration for what people can afford.

“I think it’s important to hold the public interest over a state-regulated utility that was designed to serve the public and not executives and investors,” Mike Gallagher of Morris said.

Twelve people spoke at the hearing, including two industry representatives who supported Nicor.

“Natural gas is to the chemical industry is like flour to the baker,” said Mark Biel, chief executive officer of the Chemical Industry Council of Illinois. Biel said Nicor “deserves the resources necessary” to supply natural gas.

A few speakers said there would have been more people speaking out against the rate hike if the Illinois Commerce Commission had given more notice of the hearing.

An ICC spokeswoman said the agency put out its first notice on May 28, although not everyone received the word that day,

“We were extremely disappointed to get five business days notice of this hearing,” said Al Hollenbeck with Illinois AARP.

Hollenbeck called the short notice “disrespectful.”

Nicor representatives made a presentation outlining the company’s success in delivering natural gas, especially in severe weather.

Tim Hermann, vice president of gas operations, pointed to a winter storm in January 2024 when 153,000 ComEd customers lost power but no one lost gas.

“It’s what Nicor’s system is built for,” Hermann said. “This is why Nicor is vital to Illinois’ energy future.”

The presentation, however, provided few details of how Nicor planned to use the additional $316 million."

Too much of the additional money would be pumped into profits to pay investors and bonuses to reward executives, said Jim Chilsen, communications director for the Citizens Utility Board, a consumers’ advocacy group.

Chilsen said $47 million would be paid out to investors and $18 million would be used for executive bonuses.

The $316 million increase would be the biggest for a utility in Illinois history, Chilsen said.

State Sen. Rachel Ventura, D-Joliet, said the proposed increase added to previous increases since 2017 would total $1 billion for Nicor in higher rate revenue.