Chicago, IL - Today, the Illinois Commerce Commission (ICC) approved a settlement striking $139.2 million from Northern Illinois Gas Company's (Nicor) rate request for natural gas delivery services. The decision accepts the settlement agreement reached by all parties to reduce Nicor's initial $221 million requested increase by roughly 63 percent and approves a 9.48 percent return on equity (ROE), down from the utility's requested 10.35 percent ROE.

"The ICC's responsibility is to balance the interests of Illinois' utilities and their consumers. We recognize that any decision impacting Illinoisans' bills is not a small one, and after careful review of Nicor's proposed investments, the Commission is pleased that all parties came to the table and opted to strike excess charges," said ICC Chairman Doug Scott.

The overall impact on individual customers will vary based on service class and energy usage, although the decision notably reduces residential customers' monthly fixed charge from $21.30 to $15.00.

The decision reinforces the ICC's 2025 directive that Nicor adjust its low-income discount to maintain a 3 percent energy burden for all customers, the nationally recognized measure of affordability. As a part of the approved settlement, Nicor also agreed to dismiss its pending appeal of the ICC's 2025 rate case decision.

The rate case process is designed to ensure that utilities receive the necessary funds to provide safe and reliable service at a reasonable cost to ratepayers. Under the Illinois Public Utilities Act, these costs are only recoverable if the utility demonstrates they are reasonable and prudent.

About the Illinois Commerce Commission

The Illinois Commerce Commission (ICC) is a quasi-judicial body made up of five Commissioners. Through its Public Utility Program, the Commission oversees the provision of adequate, reliable, efficient, and safe utility services at the least possible cost to Illinois citizens served by electric, natural gas, telecommunications, water, and sewer public utility companies. Through its Transportation Regulatory Program, the Commission oversees public safety and consumer protection programs with regard to intrastate commercial motor carriers of general freight, household goods movers, relocation towers, safety towers, personal property warehouses and repossession agencies. The Commission's Rail Safety Program also inspects and regulates the general safety of railroad tracks, facilities, and equipment in the state.