Elmhurst, Villa Park and Oakbrook Terrace residents who heat with Nicor Gas will pay about $2 more per month on their delivery bills under a rate hike approved Thursday, Oct. 15.

The Illinois Commerce Commission (ICC) approved an $82 million increase in Nicor's delivery rates, first reported by Shaw Local and Capitol News Illinois. The amount was negotiated between Nicor and Attorney General Kwame Raoul's office as part of a settlement that cut the utility's original request by nearly two-thirds.

Nicor had sought roughly $221 million.

Consumer advocates pushed for a deeper reduction. The approved figure splits the difference, adding an average of about $26 per year to residential bills, according to the Chicago Sun-Times. The effect on individual bills will vary based on usage.

Sources disagree on when the increase takes effect. Shaw Local reported the higher rates begin in November, while WBBM Newsradio reported a January start date, citing the utility.

Nicor Gas delivers natural gas to 2.3 million customers across northern Illinois, excluding the city of Chicago. That territory includes Elmhurst, Villa Park and Oakbrook Terrace.

Fixed charge drops

One piece of the settlement that consumer groups praised: the residential monthly fixed charge drops from about $21 to $15. That flat fee appears on every bill regardless of how much gas a household uses.

Jim Chilsen with the Citizens Utility Board said reducing the monthly customer charge is a step in the right direction, according to AOL/WMBD.

Rob Kelter, senior attorney at the Environmental Law and Policy Center, said the lower fixed charge gives low-income customers more control over their bills because they tend to use less gas. Kelter said he would like to see the charge fall to $12 or lower but said Nicor is moving in the right direction, according to Shaw Local.

Advocates call it a 'partial win'

Consumer advocates called the decision a partial win, according to Shaw Local. The settlement still raises rates, and it allows Nicor a 9.48% return on equity for shareholders. That figure falls between the 10.35% the company requested and the 8.95% that Illinois PIRG and Legal Action Chicago had sought.

Illinois PIRG Director Abe Scarr said the rate hikes fit a pattern. According to the Sun-Times, Illinois PIRG said Nicor's rates have increased 150% over the past decade through six rate hikes.

"Nicor has tried to raise rates over and over again over the last decade," Chilsen said, according to AOL/WMBD. "There's a lot of work that needs to be done to hold this company accountable and rein them in."

Consumer advocates expect Nicor to file another rate case in January, according to Shaw Local. Nicor did not respond to Shaw Local's questions about future rate case plans.

Labor side deal

The settlement also included a side deal on union labor negotiated by Raoul's office. It commits Nicor to maintaining 2026 union staffing levels through the end of 2027 and continuing its capital investment. Consumer and environmental advocates who backed the primary settlement declined to join the labor deal, fearing it could give Nicor leverage in a future rate case.

ICC Chairman Doug Scott said the commission is not bound by the labor agreement's terms in any future matter and retains authority to scrutinize future spending.

Nicor customers struggling with bills can check eligibility for the utility's low-income discount program or the state's Low Income Home Energy Assistance Program.