Nicor has ‘treated its customers like an ATM,’ Citizens Utility Board says at hearing over rate hike proposal

Nicor Gas voiced its case, telling residents gathered for a public hearing why it is asking Springfield for a gas utility rate increase.

About 100 people gathered Thursday at the Hemmens Cultural Center in Elgin to voice their opinions on that request, both in favor of and against.

The company is seeking a $308 million rate increase. Mike Guerra, Nicor’s vice president of external affairs who presented at the meeting, said the rate would come out to a 9.21% increase, or an average of $7.63 a month.

The public forum, scheduled by the Illinois Commerce Commission, was one of two held across the state. The first Nicor hearing was June 12 in Joliet. The commission is expected to rule on the request in November.

The Citizens Utility Board, AARP and the Illinois Public Interest Research Group were among those who spoke against the rate hike request.

The company has requested five rate increases and received at least a portion of each since 2017, Jim Chilsen of the utilities board said.

“Between 2017 and 2024, the utility has raised delivery rates by 114%, totaling $747 million,” Chilsen, one of 40 people who testified at the hearing, said in his remarks.

“Nicor Gas has treated its customers like an ATM,” Chilsen said, adding that CUB believes the rate increase “is double what they could ever justify.”

In previous rate increase requests, the Illinois Commerce Commission has reduced the total allowed to Nicor based on resident testimony, Chilsen noted.

Nicor officials have said the increases are needed to continue upgrading and maintaining its infrastructure systems.

“We look forward to engaging with stakeholders to discuss the drivers related to providing our customers and communities with the reliable service they’ve come to expect and deserve,” according to a prepared statement from the company. “These investments will strengthen our ability to safely, reliably and affordably meet the current and future demands of our 2.3 million customers.”

Those speaking in favor of the request included representatives from the Illinois Chamber of Commerce and the Illinois Restaurant Association.

Anthony Stonis of Building Energy Experts in Crystal Lake pointed to Nicor’s programs to help homeowners make their house more energy efficient. He has seen residents huddling around barely working radiators, shivering, Stonis said, and then Nicor’s energy-efficiency programs have helped.

“These programs work ... to lower bills and reduce greenhouse gas emissions,” Stonis said, adding that the demand for the programs exceeds the available funding.

The Illinois Commerce Commission continues to take resident testimony on the rate increase request via its website, icc.illinois.gov. AARP Illinois also has a petition in opposition to the increase on its website, states.aarp.org/illinois.

Although the public hearings have ended, “it is really important” for people to continue to give feedback and “and to let their voices be heard,” said Al Hollenbeck, AARP volunteer president.

The organization has taken hundreds of calls from seniors in Nicor’s distribution area, he said.

“People are feeling desperate about their gas bills,” Hollenbeck said.