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October 5, 2005
Naperville, Ill. – Nicor Gas announced today that natural gas prices continue to rise and the pricing environment remains volatile. According to the U.S. Energy Information Administration (EIA) the combination of Hurricanes Katrina and Rita has disrupted natural gas supplies and propped up prices at near-record highs around the nation. For the month of October Nicor Gas has filed at $1.17 per therm, which is up from last month's $1 per therm (September).
"Weather has an enormous impact on gas costs. For example, the hot weather affecting much of the country this summer created a strong demand for natural gas used to generate electricity. In addition, the hurricanes disrupted Gulf region production. As a result, we had strong demand and less production. Both of these factors are reflected in the high prices set by the natural gas market," said Gary Bartlett, vice president supply operations.
Nicor Gas today reinforced to customers that signing up for the Budget Plan, applying for financial assistance, employing energy efficiency and evaluating bill-payment programs will be important steps to consider to help manage higher gas bills this winter.
Nicor Gas does not profit from high gas costs. The cost that Nicor pays for natural gas is passed on to customers with no mark up. Nicor Gas earns a profit only on the delivery of natural gas – that is the cost of providing service to our customers. Natural gas costs make up 75 to 80 percent of a customer's bill. Delivery charges are 15 to 20 percent and taxes are 5 to 10 percent.
Budgeting for High Gas Costs
Gas prices are at a record high and the EIA is predicting higher costs this winter compared to last year. To help manage gas bills customers can join the Budget Plan, which will spread payments over a 12 month period. (Plans are evaluated every four months to update gas prices and usage.) Current participants, who have recently been evaluated, may have noticed significant increases in their payment amount. These increases are due to high gas costs. "The natural gas market continues to be volatile and this would not be the time to get off the plan. We are encouraging our customers to remain on the plan to manage their costs this winter," said Chris Suppes, vice president of sales and customer care.
Financial Assistance Is Available
Low Income Home Energy Assistance Program (LIHEAP) is a state and federally-funded program that assists households with incomes of up to 150 percent of the federal poverty level pay their energy bills. 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, 2005) until funding for the winter heating program is exhausted. The local agencies will start accepting applications from all income-eligible households on November 1, 2005. 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 for customers who do not receive LIHEAP funding, but earn up to 200 percent of the federal poverty level. The Nicor Gas Sharing Program provides one-time annual grants and customers should call their local Salvation Army to see if they qualify. "This program can also help customers who need financial assistance due to a recent hardship, such as a job loss. We have funds readily available," said Suppes. The program, administered by the Salvation Army, is funded by direct contributions from customers, employees and Nicor Gas. Customers can make donations via their monthly gas bill.
For more information on financial assistance programs, customers should visit Nicor's Web site at nicorgas.com and click on "Financial Assistance."
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. | 
