Gas Cost Frequently Asked Questions

Q:  How high will gas prices get this year?
A: Like gasoline and oil prices, the price of natural gas is on the rise. Early Energy Information Administration predictions stated that natural gas prices could be 71 percent higher this winter in the Midwest. Nicor Gas is taking steps to help our customers manage for higher costs. We offer bill payment programs such as the Budget Plan.

Q: What is this month's cost of gas?
A: The cost of gas can vary greatly from month-to-month. Visit monthly to stay informed on the latest price.

Q: Is Nicor Gas setting the price of natural gas?
A: No. Natural gas is a commodity and its price is determined by the market, based on several factors. When Nicor Gas buys gas on your behalf and delivers it to your business, we charge you exactly what we paid for it—we are not allowed to mark it up, by regulation of the Illinois Commerce Commission.

Q: What is Nicor Gas doing about high gas prices?
A:
1. Nicor Gas has taken action to help lessen the impact of market prices by filling our underground storage fields during summer months when gas prices have typically been lower, using financial purchasing instruments and hedging. Taken together, these actions account for about three-quarters of the gas needed for this winter.

2. We have developed a new Bill Planning Guide that will help you get an idea of what your upcoming bills might be. 

3. Nicor Gas offers payment programs, such as the Budget Plan that allows you to spread your payments over a 12-month period, with adjustments up or down every four months to correct for future gas prices and your usage. Your monthly bill must be less than $4,000 to qualify.

Q: Why is the cost of gas so high?
A: Natural gas is a commodity, so prices fluctuate based on several factors. Some of the recent factors causing natural gas prices to rise nationally include:

• Recent hurricanes have had a significant impact on production of gas (and other commodities) in the Gulf region -- where about 20 percent of the natural gas consumed in the U.S. is produced.
• The Midwest experienced temperatures 32 percent higher than normal this summer, therefore increasing the demand for electricity to run air conditioners. 17 percent of electricity in the U.S. is generated by natural gas, which increased the demand for gas.
• Last winter, weather in the Midwest was about 16 percent warmer than normal. The Energy Information Administration is predicting a normal to colder-than-normal winter for the Midwest, which would cause consumers to use more gas and create a greater demand. Even a prediction of bad weather can cause prices to rise.

Q: Where can I get more information on gas prices?
A: Visit the Gas Rates and Costs section of this site. There you will find the most up-to-date information including the current cost of gas, energy-saving tips, press releases on the cost of gas, and payment information.