Gas Costs Surge Across Northern Illinois as Advocates Warn of Winter Affordability Crisis – (Chicago, IL) – Northern Illinois households are heading into winter facing steep increases in gas costs, with new data showing supply prices up between 15% and 56% compared to last year and utilities moving forward with fresh rounds of rate hikes.
The analysis, released Thursday by consumer advocates, paints a troubling picture for customers of Nicor Gas, Peoples Gas, and North Shore Gas. It comes just weeks before Peoples Gas is expected to file for another rate increase—its second in three years—and shortly after Nicor imposed its fifth delivery rate hike in less than a decade.
Advocates say the combination of volatile gas supply prices and repeated utility rate increases is straining family budgets at a time when many households are already paying more for essentials like food and healthcare.
“This amounts to a double-whammy for gas customers,” said Sarah Moskowitz, executive director of the Citizens Utility Board (CUB). “The volatile market is hitting them with price spikes on one part of the bill, while utilities continue their aggressive spending to jack up rates on another.”
Rising Gas Prices Undercut Utility Claims
The surge in supply prices also undercuts assurances Peoples Gas made last year, when it sought a record $402 million rate increase. At the time, the utility argued that low fuel prices would offset higher delivery charges. State regulators eventually reduced the increase to $306 million, but the lower supply costs proved short-lived.
Nationally, natural gas prices recently reached a three-year high. Analysts warn that prices could grow even more volatile as the U.S. nearly doubles liquefied natural gas exports over the next five years.
“Modest increases in the cost of gas hit customers much harder because utilities spent excessively while prices were low,” said Abe Scarr, director of Illinois PIRG. He urged state leaders to rein in rate hikes and accelerate investment in energy efficiency and clean heating.
How Gas Bills Break Down
Gas bills include two primary charges:
Supply costs, which utilities pass directly to customers without markup.
Delivery charges, which cover infrastructure and profit, and have been the focus of repeated rate hikes.
Because utilities earn returns on infrastructure investments, advocates say they have a financial incentive to expand spending and push for higher rates.
Utility-by-Utility Breakdown
Nicor Gas
- Delivery charges: In November, the Illinois Commerce Commission (ICC) cut Nicor’s rate-hike request nearly in half but still approved a $167.8 million increase—adding about $4.25 to average monthly bills. Since 2017, Nicor has raised delivery rates five times, totaling $898 million.
- Supply prices: Higher in 10 of 12 months this year. December’s price of 39 cents per therm is 56% higher than last year.
- Affordability: As of October, 37,502 customers received disconnect notices, and more than 203,000 were over 30 days late on bills.
- Profits: Parent company Southern Co. reported $3.9 billion in profit during the first nine months of 2025.
Peoples Gas & North Shore Gas
- Delivery charges: Peoples Gas rates are up 98% since 2011, including a state-record $306 million increase last year. The utility’s parent company, WEC Energy Group, announced plans for another rate hike in 2026. North Shore Gas received an $11 million increase in 2023.
- Supply prices: Peoples Gas’ supply rates this year were higher every month, rising up to 116%. December’s price of 40.63 cents per therm is 28% higher than last year.
- North Shore Gas’ December supply price of 51.53 cents per therm is up 15% over last year.
- Affordability: In October, more than 55,000 Peoples Gas customers and 2,600 North Shore customers received disconnect notices. Past-due balances topped $66 million for Peoples Gas customers.
- Profits: WEC Energy Group reported $1.24 billion in profit through September. Peoples Gas has logged record profits in seven of the last eight years, fueled in part by a costly, long-delayed pipe replacement program that regulators ordered the utility to reform earlier this year.
Consumer advocates warn that without regulatory reforms and greater investments in energy efficiency, gas customers across the Chicago region could face increasingly severe affordability challenges.
For assistance or more information, CUB encourages residents to contact its consumer hotline at 1-800-669-5556 or visit CitizensUtilityBoard.org.
Gas Costs Surge Across Northern Illinois as Advocates Warn of Winter Affordability Crisis
