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Chicago, November 1, 2021/PRNewswire/ - Consumers in Illinois may face hundreds of dollars in heating bills this winter due to soaring natural gas prices and soaring utility spending. On November 1, supply prices rose again, with prices charged by major utility companies about twice the price in 2020. The Citizen Utilities Commission (CUB) has launched an online help center to advise natural gas customers on how to mitigate the impact of these potentially severe price increases. 

CUB reminds consumers to visit CUBHelpCenter.com. The new website explains the reasons for high natural gas prices, provides efficiency and safety tips, outlines customers’ rights to prevent power outages, and provides consumers with information on energy assistance and alternative suppliers. (This resource is also available in Spanish.) 

The consumer organization also called on utilities and government officials to provide more energy assistance this winter, and urged people who are struggling to pay their bills to contact their utility company to inquire about available payment plans and assistance.

Winter prices are at their highest level since the 2008-09 heating season. Here are the prices of major utilities in Illinois as of November 1st:

-Ameren Illinois – 68.084 cents/therm (101% higher than last November)-Nicor ​​Gas – 68 cents/therm (143% higher than last November)-North Shore Gas – 68.440 cents/therm (11 77% month high)-Peoples Gas – 73.870 cents/therm (164% higher than last November)

“Due to the financial impact of the pandemic, many consumers have difficulty paying their bills, so these skyrocketing natural gas prices are not helping anyone,” said Ivonne Rychwa, CUB Outreach Director. "We urge consumers to contact their utility company to see if they are eligible for assistance and prevent disconnection."

CUB highlights some key points about expensive winters:

Consumers should contact their utility. Encourage heating customers who cannot afford utility bills to contact their utility company and express financial difficulties. Your utility company may provide payment arrangements or financial assistance.

Public utilities need to be strengthened. Consumer organizations are calling on utility companies to allocate shareholder funds to help consumers pay their bills this winter. Nicor ​​Gas recently announced that it has contributed US$5 million in shareholder funds to a program in collaboration with the Salvation Army, which provides grants of up to US$250 to consumers in need and who are in arrears in gas bills. CUB also urges utility companies to be flexible in keeping customers in touch this winter.

More energy assistance is needed. CUB urges state and federal officials to increase energy assistance to consumers in Illinois this winter and beyond.  

Practice energy efficiency. CUB’s help center provides tips on reducing utility bills through energy efficiency and provides information on free utility programs that can help customers improve household efficiency. 

Beware of bad transactions. Sales representatives of alternative suppliers may use high oil prices to try to lure customers into bad deals. The natural gas market has been plagued by high prices and misleading marketing. Even if the price is so high, the utility may still be your best choice.

Illinois needs long-term policy changes. In addition to fighting for immediate relief for natural gas customers, CUB stated that this high-price winter has further proved the need for reform. For years, CUB has been calling on the state to control aggressive gas utility spending. In addition, consumer organizations have stated that it is time to start planning a transition from fossil fuel natural gas. As this winter has shown, natural gas is becoming more and more expensive, and it does not meet the clean energy goals designed to deal with the most expensive and dangerous effects of climate change.  

These high oil prices are one of the lingering effects of the cold snap triggered by extreme climate change, which brought record low temperatures to the country in February last year. The cold has frozen natural gas pipelines and wellheads in the south, and as heating demand increases, supply across the country is restricted. This caused prices to skyrocket. There are other influencing factors, such as a decrease in natural gas exploration and well construction.

There is another reason for the high bills: The state’s major natural gas utility companies have introduced aggressive spending plans in recent years, adding another part of the bill: delivery fees, which are the costs of companies providing natural gas to customers.

According to state law, Ameren Illinois, Nicor ​​Gas, and Peoples Gas are allowed to charge customers a special surcharge, that is, qualified infrastructure factory fees, which increase with the increase in gas bills. In fact, a Peoples Gas pipeline replacement program that has been criticized for overspending and poor management is expected to double fixed costs to $80 per month in the next 10 years.

In addition, the company has also promoted a higher delivery rate. As early as January, Ameren received a US$76 million interest rate hike, and Nicor ​​is currently asking for a US$198.8 million interest rate hike—this is the utility’s third interest rate hike request in four years.

CUB is the leading non-profit utility regulator in Illinois. CUB was created by the Illinois Legislature and opened in 1984 to represent the interests of residential and small business utility customers. Since then, it has saved consumers more than $20 billion by helping to prevent interest rate hikes, ensure refunds, and strive for clean, low-cost energy. For more information, please call CUB’s consumer hotline at 1-800-669-5556, or visit its award-winning website www.CitizensUtilityBoard.org.

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