Current natural gas costs across the United States reflect continued uncertainties over what the next 12 months hold globally for weather patterns, market conditions and escalating geopolitical events that continue to cause an uptick in the current and forward market for natural gas prices.
Nicor Gas’ per therm natural gas cost in June will be $1.24. Current gas cost reflects the forecast for the future price of gas and the pipeline transportation and storage services that are used to transport the natural gas from the production area to the Nicor Gas distribution system that reaches 2.2 million customers across more than 650 communities in Illinois.
The gas supply charge is filed monthly with the Illinois Commerce Commission and is the price customers pay for gas purchased from Nicor Gas. As a regulated utility, the company does not, and cannot profit from the sale of natural gas; the price we pay for gas is passed on to our customers without markup. Since April, the price that Nicor Gas pays for natural gas has more than doubled.
Your Monthly Natural Gas Bill: Understand Your Charges
Understand How Your Bill is Calculated
Though we cannot change the market price of natural gas, we continue to provide financial assistance to support our customers with an additional $1 million made available through The Salvation Army’s Shield of Caring program to assist customers in need who may be struggling in the wake of rising energy prices and global inflation.
Nicor Gas’ Sharing and Energy Aide programs remain available for qualifying customers, as well as flexible payment arrangements and the Nicor Gas Budget Plan that provides a convenient way for customers to plan for and pay their monthly natural gas bill.
The company’s Community Connection Center (C3) is a new resource to help connect our customers with energy assistance payment options and other basic needs. C3 was created in response to increased customer requests for assistance and provides more detailed, personalized access to resources with both their monthly utility bill payments and other basic needs such as food and housing. For more information, Nicor Gas residential customers can contact the C3 team by emailing: email@example.com or submitting an assistance request form at: www.nicorgas.com/CCC.
How is Your Bill Calculated?
Natural Gas Cost (70-80% of your annual bill)
Natural gas costs make up the largest portion of your Nicor Gas bill. This is the charge for the gas you use during the billing month. It is calculated by multiplying your gas usage by the average cost per therm we pay to purchase gas supplies. The amount you pay varies monthly based on the cost of gas and the amount you use. Nicor Gas does not profit from gas costs; we pass our cost on to you without markup.
Delivery Charges (20-30% of your annual bill)
Delivery charges shown on your bill consist of the following:
Monthly Customer Charge – a fixed amount that covers our expenses to obtain a meter read, produce your bill and other monthly administrative costs. A small portion of this charge covers various taxes. This charge is incurred even if no gas is used.
Distribution Charges – covers our operating and distribution costs. These charges vary monthly based on the amount of natural gas you use.
Environmental Recovery Cost – covers our cost for the environmental monitoring and clean-up of former manufactured gas facilities. This cost changes periodically, and Nicor Gas does not profit from these charges.
Franchise Cost – covers our cost for municipal franchise agreements. Nicor Gas does not profit from this charge.
Governmental Agency Adjustment – an adjustment for governmental fees and added costs, excluding franchise costs. This cost changes periodically, and Nicor Gas does not profit from these adjustments.
Efficiency Program Charge (Effective June, 2009) – pays for costs related to energy efficiency programs. Nicor Gas does not profit from this charge.
Taxes (3-10% of your annual bill)
Taxes are levied by the State of Illinois and various local municipalities. There are several taxes that may be associated with your natural gas bill, including:
State Revenue Tax – a tax mandated by the state.
Utility Fund Tax – mandated by the state, this tax funds the Illinois Commerce Commission (ICC), which regulates all Illinois utilities.
State Use Tax – a tax for gas purchased outside Illinois for use in Illinois.
Municipal Utility Tax – some municipalities charge a tax based on utility revenues and apply according to the municipality's local ordinance.
Municipal Use Tax – some municipalities charge this tax based on your gas usage.
For more information, please see the back of your bill.