Illinois attorney general reaches settlement with Nicor to cut $140 million from proposed rate hike

Nicor customers will get a break on their bills this fall after Illinois Attorney General Kwame Roul reached an agreement with the utility to cut $140 million from its requested rate hike.

Nicor filed for a $221 million rate increase in January, a 14.5% increase over current rates, Raoul's office said. The AG's office opposed the hike, alleging significant portions of the forecasted spending program were overstated or unnecessary, and that Nicor was inflating a routine accounting mechanism to increase their profits.

The settlement reached between the state and Nicor cuts the rate hike request by 63%, Raoul's office said.

Raoul's office also said the settlement will reduce the monthly fixed charge, which customers pay each month regardless of how much gas they use, from $21.30 to $15 beginning on Nov. 15.

The settlement also requires Nicor to accept a reduction in how much profit it can make on its infrastructure investments, which in turn will reduce the portion of rates Nicor uses to pay shareholders, further benefitting customers.

The agreement still needs to be approved by the Illinois Commerce Commission.