Glossary of Terms

Actual Meter Reading: Your meter was read by a Nicor Gas meter reader.
Customer Read: You reported your meter reading to us.
Estimated Meter Reading: Your reading was estimated based on previous use and the weather. Every other month, we estimate most customers' meter readings. On your next bill, any difference from your actual use is automatically corrected when we take an actual meter reading.
Therm: A therm is the basic unit for measuring your natural gas consumption.
Meter Exchange: If we exchanged your meter, this note means your bill is based on the reading of the meter we removed from your address.
Pressure Factor: If you require higher than normal gas pressure, the pressure factor is a multiplier that adjusts for increased gas volumes flowing through a meter.

Learn how to read your meter.

Delivery Charges

These charges cover our fixed and variable operating and distribution costs. A portion of these charges varies from month to month based on your natural gas usage.

Monthly Customer Charge: A minimum monthly fixed charge that is assessed even when you do not use natural gas.
Distribution Charges: Cover our operating and distribution costs. These charges vary monthly, based on the amount of natural gas you use.
Environmental Recovery Cost: Covers our costs for the environmental investigation and cleanup of former manufactured gas plants. Nicor Gas receives no profit from these charges.
Franchise Cost: Covers our cost for municipal franchise agreements. Nicor Gas does not profit from this charge.
Governmental Agency Adjustment: This adjustment covers governmental fees and added costs, excluding franchise costs. This cost changes periodically. Nicor Gas does not profit from these adjustments.

Natural Gas Cost

The price we pay our suppliers for the natural gas we deliver to your home or business. The price may change each calendar month and is filed with the Illinois Commerce Commission.

Taxes

State Revenue Tax: This is mandated by the State of Illinois. It is not a sales tax.
Utility Fund Tax: This funds the Illinois Commerce Commission, which regulates all Illinois utilities and is mandated by the state.
State Use Tax: This tax is imposed on natural gas purchased outside of Illinois for use or consumption in Illinois.
Municipal Utility Tax: Some municipalities charge this tax based on utility revenue. It is authorized by Section 8-11-2 of the Illinois Municipal Code and is applied according to the local municipality's ordinance.
Municipal Use Tax: Some municipalities charge this tax based on your gas use. Your local municipality has an ordinance requiring collection of this tax.

Energy Profile

Degree Day: Degree days are used to estimate the amount of natural gas used for heating. Degree days result when the average of the day's high and low temperatures drops below 65 degrees.
Learn more about degree days.

Payment Information

Budget Plan: This plan spreads your estimated annual gas costs over 12 monthly payments. Approximately every four months we evaluate your account and adjust your monthly payment for changes in weather and/or the price of gas. If you build a credit balance on your account, you will receive earned credit. If you have a debit balance, a finance charge will be assessed. Staying current on your payments will result in favorable reporting to credit bureaus. Sign up on your bill stub or in My Account. Learn more about the Budget Plan.
Security Deposits: In accordance with the Illinois Administrative Code Part 280, Nicor Gas may request a cash security deposit under the following circumstances: history of late payments, failure to pay final bill at a prior address, service disconnection due to non-payment, meter tampering, or other reasons.
Credit Reporting: We report payments to credit bureaus. Payments more than 30 days past due may adversely affect your credit rating.
Auto Payment: You can have the amount of your gas bill electronically withdrawn from a checking or savings account on a specific date or when the bill is due. Sign up in My Account.
Other Options: Pay your bill by telephone or online. To pay with a credit card, call 1 888 642-6748.
Sharing Program: A charitable program designed to help people pay their natural gas bills. To see if you could benefit from the Sharing Program, please contact your local Salvation Army. To contribute to the Sharing Program, please check the appropriate box on your bill stub and add the amount to your payment.
Learn more about the Nicor Gas Sharing Program.

Return to Sections of Your Bill. Return to Understanding Your Bill.