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March 5, 2007
Naperville, IL. – Nicor Gas announced today that it has filed a March gas supply charge (GSC) of 83 cents per therm with the Illinois Commerce Commission, up 11 cents compared to February. The GSC is the cost Nicor Gas pays for gas, which is passed through to customers with no mark-up. Colder-than-normal temperatures and increased demand during the first two months of 2007 have caused an increase in natural gas prices.
In early 2007, the Chicagoland area experienced its longest sub-freezing streak in 23 years. Unusually cold temperatures and excessive snowfall throughout much of the country caused an increase in national demand for natural gas to heat homes and businesses. According to the U.S. Energy Information Administration (EIA), higher-than-expected usage depleted the amount of natural gas in storage more than anticipated. A sudden increase in demand – one of the largest net withdrawals since 1994 – and the unusually large draw on supply caused increases in market prices.
“Weather – here in Illinois and throughout the country – always has a significant impact on natural gas prices,” said Gary Bartlett, vice president of supply operations. “Supply and demand drives natural gas prices. The frigid air that overtook much of the country in late January and much of February resulted in a demand increase and prices responded to the demand boost by increasing as well,” said Bartlett.
Kevin Kirby, vice president of customer care for Nicor Gas, encouraged all customers to be prepared for unexpected weather conditions that could impact gas costs and result in higher heating bills. “Although we are in the final month of the official heating season, which goes from October to March, winter isn’t over yet, so we encourage all customers to take advantage of programs like the Nicor Gas Budget Plan that can help them manage their heating costs.” The Nicor Gas Budget Plan can help level some of the ups and downs of natural gas prices by spreading payments over a 12-month period.
Payments are periodically adjusted up and down to correct for future gas prices and expected usage. This plan is intended to help minimize the impact of price increases that usually take place during the colder months of the winter heating season.
Using Energy Wisely
Nicor Gas also offers many helpful resources, including an online home energy audit that can help customers save energy and reduce costs. Customers can also access tips on how to save money on their natural gas bills in “Keeping the Warmth In and the Cold Out,” a free guide on how to use energy wisely that can be downloaded from www.nicor.com.
Financial Help is Available
Low Income Home Energy Assistance Program (LIHEAP) is a state- and federally-funded program that assists households with incomes of up to 150 percent of the federal poverty level pay their energy bills. For additional information about the grant program, go to www.liheapillinois.com, or call the toll-free LIHEAP information line at 1-877-411-9276.
Nicor Gas also offers eligible applicants financial help through its Sharing Program, which provides one-time annual grants to customers who currently earn between 150% - 200% of the federal poverty level. The program, administered by the Salvation Army, is funded by direct contributions from customers, employees and Nicor Gas. Customers who wish to make a donation and help other customers in need can do so via their monthly gas bill. To apply for assistance from the Nicor Gas Sharing Program, customers should visit their local Salvation Army office.
Additional information about these programs, as well as tips on energy conservation, can be found at www.nicor.com or by calling 1 888 Nicor4u (1 888 642-6748).
Nicor Gas is one of the nation's largest gas distribution companies. Owned by Nicor Inc. (NYSE: GAS) a holding company, Nicor Gas has provided safe and reliable natural gas services for over 50 years. The Company serves more than two million customers in a service territory that encompasses most of the northern third of Illinois, excluding the city of Chicago. | 
