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September 2, 2005
Naperville, Ill. – Nicor Gas has filed $1 per therm, which is up from last month's (August) 75 cents per therm and from last September, which was 62 cents per therm. The average September residential bill will be approximately $40, a 50 percent increase compared to last year when the average September bill was $27. Like all natural gas utilities, Nicor Gas does not profit from the cost of gas, but passes the cost on to customers at no mark-up.
Weather Effect on Natural Gas Prices
There are several reasons why natural gas prices have been increasing this summer. One important factor impacting September's increase is Hurricane Katrina. According to the Minerals Management Service (MMS), the Federal agency that manages the nation's natural gas, oil and other mineral resources in the Gulf of Mexico; Hurricane Katrina shut down most natural gas production in the Gulf of Mexico for the past several days. The Gulf of Mexico produces about 20 percent of the nation's natural gas supply.
The hot weather affecting much of the country also created a strong demand for natural gas used to generate electricity. The Department of Energy's Information Administration (EIA) reports that natural gas commodity prices have increased, as demand for power generation remained high in order to meet air-conditioning load. Additionally, as a competing fuel, the recent upward trend in crude oil prices has helped support the recent rise in natural gas prices.
What Can Customers Do? Plan Ahead
With the expectation that natural gas prices will increase this winter, Nicor Gas recommends that customers consider joining the Budget Plan, which spreads payments over a 12-month period and may be adjusted up or down every four months to correct for future gas prices and expected usage.
"We're asking customers to plan ahead for this winter's gas bills. With winter around the corner and the possibility of ups and downs in monthly gas costs this winter, this is an especially good time to evaluate payment plans that are available," said Chris Suppes, vice president sales and customer care.
Approximately 25 percent of residential customers are currently participating in Nicor Gas' Budget Plan.
Financial Assistance Is Available
Low Income Home Energy Assistance Program (LIHEAP) is a state- and federally funded energy assistance program that assists households with incomes of up to 150 percent of the federal poverty level. A network of 35 local administering agencies will accept energy grant applications on a first-come, first-serve basis from eligible households beginning September 1 until funding for the winter heating program is exhausted. The local administering agencies will start accepting applications from all income-eligible households on November 1, 2006. For additional information about the grant program, go to www.liheapillinois.com, or call the toll-free LIHEAP information line at 1-800-252-8643.
There are also funds available now for customers with past due balances who do not qualify for LIHEAP, but earn between 150% and 200% of the federal poverty income level. The Nicor Gas Sharing Program provides one-time annual grants to qualified residential customers. "The Sharing Program may be an option to help a customer with past due bills right now. We have funds that are readily available and we encourage eligible participants to apply," said Suppes. The program is administered by the Salvation Army and is funded by direct contributions from customers, employees and Nicor Gas. Customers can make donations via their monthly gas bill.
For more information on the Sharing Program and other financial assistance programs, customers can visit Nicor's Web site at http://nicorgas.com and click on Financial Assistance. They should contact their local Salvation Army office to find out if they qualify for Sharing.
Nicor Gas is one of the nation's largest gas distribution companies. Owned by Nicor Inc. (NYSE: GAS) a holding company, Nicor Gas has provided safe and reliable natural gas services for over 50 years. The Company serves two million customers in a service territory that encompasses most of the northern third of Illinois, excluding the city of Chicago. | 
