Illinois Officials OK $69M Gas Rate Hike For Nicor

SOPHIA TAREEN

CHICAGO (AP) — The Illinois Commerce Commission approved a $69 million rate increase Wednesday for Nicor Inc. that officials said will add up to $3 to the average residential customer's monthly bill.

The approval means the average customer will see an approximately $2.50 increase on their bill starting in April, said Nicor spokeswoman Annette Martinez.

Some of Nicor's more than 2 million northern Illinois customers could see up to a $3 monthly increase, depending on usage and the season, ICC spokeswoman Beth Bosch said.

The approved rate hike was about half the original $140 million the company requested last year. That would have pushed residential customers' gas rates up 5 percent, or about $4.86 a month.

ICC officials said they reduced Nicor's 2008 request in areas including incentive compensation expense. In a statement, commission officials said Nicor "proved its case to collect a $69 million increase."

Nicor's original request was criticized by many, including Illinois Attorney General Lisa Madigan and the Citizens Utility Board, which planned to appeal Wednesday's decision.