Settlement Details
Illinois Attorney General Kwame Raoul has reached an agreement with Nicor that reduces the utility's proposed rate hike by $140 million, according to his office. The original request, filed in January, sought a 14.5% increase over current rates. Raoul's office opposed the hike, arguing that significant portions of Nicor's forecasted spending were overstated or unnecessary and that the company was inflating a routine accounting mechanism to boost profits.[S1]
The settlement cuts the rate hike request by 63%, Raoul's office said. It also lowers the monthly fixed charge that customers pay regardless of gas usage from $21.30 to $15, effective Nov. 15. Additionally, Nicor must accept a reduction in the profit it can earn on infrastructure investments, which will decrease the portion of rates used to pay shareholders, further benefiting customers.[S1]
The agreement still requires approval from the Illinois Commerce Commission before it can take effect.[S1]
