Nicor Gas Bill Explained

Your Nicor Gas bill contains multiple line items that can seem confusing at first glance. This guide walks through each charge so you can understand exactly what you're paying for and verify that your bill is accurate.

A typical Nicor bill includes 6-10 distinct charges, plus taxes and fees. Understanding each component helps you identify opportunities to reduce costs and catch potential errors.

The Monthly Customer Charge (approximately $23) is a fixed fee that covers Nicor's costs for:

• Meter reading and maintenance
• Billing and customer service
• Maintaining your service connection

You pay this charge even if you use zero therms in a month. It's the same for all residential customers regardless of usage level.

Delivery charges cover the cost of transporting gas through Nicor's pipeline network to your home. These include:

• Distribution Charge: Per-therm fee for pipeline usage
• Rider charges: Various surcharges for infrastructure, environmental compliance, and energy efficiency programs

Delivery charges are regulated by the ICC and are the same whether you buy gas from Nicor or an alternative supplier.

The Gas Supply Charge covers the cost of the natural gas commodity. This is calculated by multiplying your therm usage by the current supply rate (e.g., 200 therms × $0.42/therm = $84).

This charge fluctuates monthly based on wholesale gas prices. If you've chosen an alternative supplier through Customer Select, their rate appears here instead of Nicor's.

Additional charges on your bill may include:

• State Tax: Illinois tax on gas utility services
• Municipal Tax: Local taxes that vary by municipality
• Franchise Fee: Fees paid to your city for use of public rights-of-way

These charges typically add 5-10% to your pre-tax bill amount.