By Madhu Mayer
Normally, the summer months are a haven for those looking to escape high heating bills.
But that will no longer be the case as Nicor Gas, which buys its natural gas at the cost established by the market as a regulated utility, has increased its prices effective May 1.
According to a Nicor spokesperson, that cost is passed through to customers without markup, meaning customers pay the same price the company pays for natural gas. Nicor Gas does not and cannot profit from the sale of natural gas, the spokesperson reiterated.
Each month, Nicor Gas must file the gas supply charge, or current cost of natural gas, with the Illinois Commerce Commission (ICC) to reflect any fluctuation in costs. But due to the increased market price of natural gas and other factors, the gas supply charge filed with the ICC will be $1.11 in May, compared to $0.68 in April, the spokesperson said.
“Nicor Gas customers will see this increase reflected in the May bill under the per therm gas supply charge section,” the spokesperson said. “This supply charge for natural gas delivered by Nicor Gas represents approximately 70% of a typical residential customer bill. Other monthly charges include taxes and the cost to deliver natural gas to your home. Your gas bill will vary from month to month for various reasons.”
The spokesperson pointed to uncertainties related to weather patterns, market conditions, and escalating geopolitical events as causing the uptick in the natural gas market prices across the world.
“Price increases are also being experienced in other areas such as at the grocery store, the gas pump, and other goods and services,” the spokesperson added. “Nicor Gas understands our customers expect and deserve natural gas service that is clean, safe, reliable and affordable every day, including service without interruption through extreme weather and unpredictable low temperatures like we have seen throughout this spring.”
“Nicor Gas was able to lower its monthly gas supply charge during the coldest months of the year due to pricing management strategies and its underground storage capabilities,” Nicor spokeswoman Jennifer Golz said. “Current prices are aligned with December’s per-therm gas supply cost.”
Though financial assistance is available to those who meet guidelines set by Nicor to pay their bills, Bill Storyman of Joliet said he does not know how he is going to juggle high Nicor bills with ComEd during the upcoming hot months.
“We are paying so much for gasoline, food and other things already,” he said. “My ComEd bills in June, July and August are around $150, but that was before inflation. I do not know how my family is going to come up with the extra money.”
Janet Mendoza of Plainfield agrees, saying “enough is enough.”
“I just cannot believe things are getting this bad,” she said. “We are working class people and I am already spending $300 more for groceries this month. We do not even know what we are going to do if gasoline prices keep going up. It looks like I will not be drying my clothes in the dryer this summer.”
Jim Giannapoulos of Bolingbrook said he, too, is worried about escalating bills.
“It is not just gasoline prices going up, it is food and utilities, too,” he said. “All the bills are going up, but my wages are not.”
Madhu Mayer, reporter – mmayer@thetimesweekly.com
