Hinsdale homeowners would see their monthly Nicor Gas fixed charge fall from $21.30 to $15 under a proposed settlement that cuts the utility's rate increase request by 63 percent.

Illinois Attorney General Kwame Raoul announced the deal Wednesday, Sept. 9, after his office argued Nicor had overstated spending in its capital program and inflated an accounting mechanism that boosted profits. The settlement, which still needs approval from the Illinois Commerce Commission (ICC), would cut Nicor's January request for a $221 million rate increase down to roughly $81 million.

For the average residential customer, that translates to about $2.21 more per month, or a 2.49 percent bump on total annual bills, according to a Nicor spokesperson quoted by WTTW. That is far less than the 14.5 percent increase Nicor originally sought.

Hinsdale sits in Nicor's service territory. The utility serves 2.3 million customers across northern Illinois, and Hinsdale appears on its DuPage County and Cook County service lists.

The lower $15 fixed charge would take effect Nov. 16. The AG's office said the reduction should mean lower monthly bills for most customers during months when natural gas use is lighter.

A second rate hike, and a withdrawn appeal

The settlement also addresses a separate fight over Nicor's rates. In November 2025, the ICC approved a $168 million rate increase for the utility, a 12.1 percent jump over 2024 rates. Nicor appealed that decision.

Under the new deal, Nicor must drop that appeal. Raoul's office said withdrawing it protects customers from potential additional increases if Nicor had prevailed in court.

"Our settlement ensures Nicor can continue to retain good jobs in Illinois while protecting consumers from drastic rate increases," Raoul said in a statement reported by Patch.

The settlement would also reduce the profit Nicor is allowed to earn on infrastructure investments, lowering the share of customer rates that goes to compensating the utility's shareholders.

Union jobs protected

A separate supplemental agreement requires Nicor to protect more than 1,500 union jobs held by members of International Brotherhood of Electrical Workers (IBEW) Local 19 through next year. Andy Nacke, president, business manager and financial secretary of IBEW Local 19, said the deal shows "the importance of labor continuing to have a seat at the table."

Consumer advocates objected to Nicor's January filing, noting it came less than two months after the ICC approved the previous $168 million hike.

The ICC has not announced a hearing date for the proposed settlement. Hinsdale residents on Nicor service can track the case through the commission's public docket.