Average Nicor Gas Bill

Nicor Gas is an Illinois-based natural gas distribution company that uses more than 30,000 miles of pipeline to deliver gas to more than 2 million customers in the northern third of the state. Just what is the average Nicor gas customer paying for this service?

Natural Gas Charges

More than three quarters of your annual average Nicor bill comes from the cost that you pay for natural gas. (The rest of the bill is from other types of charges). Nicor purchases gas on behalf of its customers and passes the cost on to the customer without marking it up. Customers who make the proactive choice to switch to a lower cost natural gas supplier can lower their bills. Obviously a reduced price in the cost of your natural gas can significantly lower your monthly bill.

Other Charges

The rest of your Nicor bill is made up of delivery charges and taxes. Nicor reports on their website that they charge an average of 14 cents per therm for natural gas delivery. They use a one-size-fits-all pricing scheme so that all customers pay the same price per therm for their natural gas. While this is good for some customers, it can mean higher-than necessary rates for other customers.

Average Bill Varies by Season

The average Nicor natural gas bill varies a lot by season. According to the Illinois Commerce Commission, customers use natural gas as much as ten times more in the coldest months of the year as they do during the warmest months. This means that the average Nicor bill may seem low right now because it’s summer but once the winter months roll around it will once again be very high. January’s bill may be nine or ten times higher than August’s bill.

Of course, every little bit of savings helps. That’s why it makes sense to seek out the lowest IL natural gas rates now rather than waiting for those higher winter bills to come around.

Source: http://www.icc.illinois.gov/ags/consumereducation.aspx

Publish Date: 2011-06-22 13:04:35

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About the Author
Christina Cleri has been writing about the energy industry since 2010. She focuses on topics that affect customers in each deregulated state.

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