Understanding the three parts
of your gas bill amount

These percentages reflect how your gas payments are allocated on an annualized basis using historical data. Gas costs fluctuate throughout the year, so the actual percentages may be higher or lower depending on the season.

 Natural Gas Cost (75-80%)

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 for 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 (15-20%)

Delivery charges shown on your bill are comprised of the following:

• Monthly Customer Charge – a fixed amount that covers our expenses to read your meter, 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.

 Taxes (5-10%)

Taxes are levied by the State of Illinois and various local municipalities.

For more information please see the back of your bill.