Energy Decisions Blamed for Higher Utility Costs

Illinois residential customers will see higher natural gas bills starting this month after the Illinois Commerce Commission (ICC) approved scaled-back rate increases for Ameren Illinois and Nicor Gas. For Ameren customers, the ruling translates to an average monthly increase of $3.65 — lower than the utility’s original proposal but still an added cost for more than 816,000 households across central and southern Illinois.

The ICC’s decision, issued November 19, followed an extensive 11-month review of testimony and documentation submitted by the utilities, consumer protection groups, and environmental advocates. Commissioners ultimately approved a $73 million increase for Ameren and a $168 million increase for Nicor, reducing both requests by more than 40 percent. Nicor, the state’s largest gas utility serving 2.3 million customers, estimated that a typical residential bill will rise by less than $4.25 per month.

Under state rules, gas utilities may file new rate requests each January, though Ameren and Nicor have historically done so every other year. Once filed, the ICC spends nearly a year evaluating proposals before new delivery rates take effect the following January. Based on that schedule, the earliest additional increases could appear is January 2027 — or January 2028 if the utilities maintain their alternating cycle.

While regulators significantly trimmed both requests, consumer advocates argue that the approved increases still place added strain on households already balancing higher costs for everyday essentials. They noted that this is Ameren’s fourth gas delivery rate increase since 2018 and Nicor’s fifth since 2017 — a trend they say underscores the need for stronger oversight.

State Representative Mike Coffey echoed those concerns, saying “there is a smarter path forward in Illinois to produce cheap and efficient energy, but we have to look at the reality of our current situation and the red flags that point to higher demand and less production.” Coffey added that “when you look at the big picture, Illinois does not have the power to supply AI data centers, residential homes, and businesses. The economic reality of mandating electrification in Illinois is sinking in, and it’s created a financial burden on everyone in our state.”

Ameren officials emphasized that the company does not profit from the natural gas commodity itself, as market prices are passed directly to consumers without markup. Instead, utilities earn revenue on infrastructure investments tied to energy delivery — the area affected by rate adjustments. Ameren says it is working to manage overall customer costs by reducing volatility in gas supply pricing.

Brad Kloeppel, Ameren’s senior director of gas operations and technical services, said the utility’s investment in underground natural gas storage fields plays a key role in keeping winter costs more stable. Ameren operates 12 storage facilities statewide, allowing it to purchase roughly 60 percent of its winter supply during cheaper summer months. According to Kloeppel, this strategy has reduced the cost of natural gas supply for consumers by 30 percent over the past five years and shields households from severe price spikes during winter storms.

Still, consumer groups stress that even modest rate increases create new challenges for families heading into the coldest months of the year. With grocery, medical, and other household expenses rising, organizations like the Citizens Utility Board continue calling on state regulators to take a firm stance on future proposals, arguing that no resident should be forced to choose between heating their home and covering basic necessities.

State Senator Steve McClure expressed similar concerns about rising utility bills, noting that “the people I represent have been slammed by out-of-control hikes in their electric bills, all due to the Governor’s power legislation that he pushed through just a few years ago. Now, instead of fixing the real issues and providing much-needed relief, he and his allies are ramming through a new bill that will only make the situation worse.”