Question
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Delivery rate increase |
Higher gas costs |
| What is the financial impact on my monthly bill? |
Approximately $1.25 more per month. The amount will change slightly every month based on your gas usage. |
The U.S. Energy Information Administration is predicting that gas prices will be lower than last year for the months of October 2006-March 2007. Use our Bill Planning Guide to get an idea of how this will impact your winter bills. |
What percentage of my bill accounts for this charge?
|
The delivery charge portion of your bill accounts for 15-20% of your total bill (annual average). The new rates will increase the delivery charge portion by about 8%. |
Natural gas costs account for about 75-80% of your bill (annual average). |
| Does Nicor Gas make a profit on this charge? |
Yes. |
No. We purchase gas on customers' behalf and pass the cost on without markup.
|
What does this charge pay for?
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The cost of getting the gas to your home and providing:
Emergency response
Customer care
Meter reading
Maintenance and construction of pipelines and infrastructure to serve our current 2.1 million customers, and 30,000 new customers every year
Implementation of new regulations to comply with the Pipeline Safety Act
Implementation of post 9/11 security procedures |
The cost of the natural gas we purchase from another supplier on your behalf.
Nicor Gas does not produce natural gas. |
| When was the last change in this cost? |
Prior to our 2005-2006 rate case, Nicor Gas' last rate increase was in 1996. |
The cost of gas fluctuates monthly. |
| Where does this charge appear on my bill? |
In the "Delivery Charges" section. The "Customer Charge" and the distribution charge per therm will change slightly. |
In the "Natural Gas Cost" section. You'll see the number of therms you've used for the month multiplied by the cost per therm. |
| How do Nicor Gas' charges compare to other utilities? |
Nicor Gas still has the lowest distribution rates of any major Illinois utility. In fact, Nicor Gas' distribution rates are between 21% and 95% lower than other Illinois utilities. |
Through the use of financial purchasing instruments, hedging and our seven storage fields, we have historically been able to purchase natural gas at a lower cost than most utilities in the country. |
| Can I do anything to reduce these costs? |
The "Customer Charge" is a set charge every month. The distribution charges vary slightly depending on the amount (therms) of gas you use. You can change your energy use habits and weatherize your home to reduce your gas use. |
Yes! Because the cost of gas is the largest portion of your bill, any energy tips you apply to reduce your gas use will impact this portion of your bill the most.
Joining the Budget Plan will also make a big difference by spreading out your payments over 12 months, so you won't have high bills in the winter and low bills in the summer. |
