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Outline of Charges

It is important to understand the charges that make up your bill so you can plan your gas use and make energy efficiency decisions that are a good fit for you.

Rate for Service



This is the rate charged for your gas service. Rate 1 applies to any customer using Nicor Gas for residential purposes. For more information on gas rates, see our Rate Book.

Your bill consists of three types of charges:

  • Delivery Charges (15-20% of your annual bill) – Whether you purchase your natural gas from Nicor Gas or an alternative supplier, Nicor Gas will continue to deliver the gas, which has the following associated costs:
  • Customer Charge – a fixed monthly charge that covers administrative costs and expenses such as reading your meter, printing and mailing your bill
  • Therm Usage/Distribution Charge – covers our operating and gas distribution costs. It varies each month depending on the amount of natural gas that you use

Environmental Cost Recovery* – recovery of the costs we incur for the environmental investigation and cleanup of former manufactured gas plant sites

Governmental Agency Adjustment* – covers governmental fees and added costs, excluding franchise costs

Franchise Cost Adjustment* – covers our cost for municipal franchise agreements

Efficiency Program Charge* (June 2009) – pays for the costs related to energy efficiency programs.

* Nicor Gas does not profit from these costs.

Natural Gas Cost (75-80% of your annual bill) – the cost of the natural gas commodity that is calculated by taking the number of therms (the measure of how much gas you used during the bill period) and multiplying it by the price per therm. As a regulated utility, Nicor Gas does not profit from gas costs. We pass the cost to you without mark-up.

Taxes (5-10% of your annual bill) – There are several taxes that may be associated with your natural gas bill, including:

  • State Revenue Tax – a tax mandated by the state
  • Utility Fund Tax – mandated by the state, this tax funds the Illinois Commerce Commission (ICC), which regulates all Illinois utilities
  • State Use Tax – a tax for gas purchased outside Illinois for use in Illinois
  • Municipal Utility Tax – some municipalities charge this tax which is based on utility revenues and applied according to the municipality's local ordinance
  • Municipal Use Tax – some municipalities charge this tax based on your gas usage
More information about charges related to our Customer Select alternative gas supplier program, third-party warranty and other services>