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Illinois · Gas

Why your Illinois gas bill jumps in winter, and what helps

By Dr. Matthew Crowley

· 8 min read

Checked against: Plug In Illinois (plugin.illinois.gov). How we get our prices

This guide is about Illinois. Judy checks bills in 18 states. Find your state's rules

Your gas bill was small all summer. Then the first cold month comes, and it jumps. If you're with Nicor Gas, Peoples Gas or North Shore Gas, you are not imagining it.

This month's prices are on our pages for Nicor Gas's gas price, Peoples Gas's gas price and North Shore Gas's gas price.

There are two reasons a gas bill climbs in winter. One you can do a little about. The other you can check. Here is how both work, in plain words.

Reason 1: You use much more gas in winter

This is the big one. The Illinois Commerce Commission (ICC) says a typical Illinois home that heats with gas uses "nearly 75 percent of their total natural gas supply from November through March." It also says gas use and supply charges "can be nearly ten times higher in winter months than in summer months."

So even if the price stayed the same all year, your winter bills would be much bigger. Your bill shows how much gas you used, in therms. A therm is a unit of heat. Compare this month's therms with the same month last year. If they are close, the weather is most of the story.

Reason 2: The gas price changes every month

If you never picked a gas supplier, you pay your utility's own price for gas. It goes by a few names:

  • the ICC calls it the Purchased Gas Adjustment, or PGA
  • Nicor calls it Natural Gas Cost on the bill
  • Peoples Gas and North Shore Gas call it the Gas Charge

The ICC says that under the PGA, "the price you pay per therm of gas consumed can change monthly." It also says: "Gas utilities do not profit from the price of gas; it must be passed on to consumers without markup."

So your utility doesn't earn more when gas costs more. But your bill still goes up when the market price goes up, and down when it falls.

You can see this month's price, and how it has moved, on our pages for Nicor Gas, Peoples Gas and North Shore Gas.

What's on the gas bill

The ICC says a gas bill has three main parts:

  • Delivery. This pays the utility to bring gas to your home through its pipes. It stays the same no matter who sells you the gas.
  • Gas supply. The therms you used times the price per therm.
  • Taxes.

Only the supply part depends on the gas price, or on a supplier if you have one.

Reading a Peoples Gas bill in Chicago, line by line

A Peoples Gas bill can run to a dozen lines, plus a few taxes with long names. Here is what each part means, using Peoples Gas's own words. (Nicor and North Shore bills use many of the same ideas, with their own names for some lines.)

Peoples Gas's guide to the bill sorts its charges into ones that stay fixed each month, no matter how much gas you use, and ones that go up and down with the therms you use.

Delivery lines

Customer charge. Peoples Gas says it "covers many of the fixed costs to deliver safe and reliable natural gas." That includes the gas mains, reading your meter, and "qualified people to respond to natural gas emergencies." You pay it every month, even in summer.

Distribution charge. This one "varies each month based on how many therms of gas you use." More gas used, bigger charge.

Storage service charge. Peoples Gas stores natural gas, and this charge "covers some of the costs associated with storing natural gas."

The Gas Charge

Gas charge. This is the cost of the gas you used. Peoples Gas says it is "for the purchase, transportation and storage of gas, as well as the management of gas supplies." It can change every month, and Peoples Gas says it "does not profit from the price of gas."

Smaller lines and taxes

Peoples Gas lists a few more lines. Each one covers a specific cost:

  • Energy Efficiency Program: funds energy-saving programs "mandated by law."
  • Environmental charge: pays to clean up sites where gas was made long ago.
  • UEA, Gas Cost Adjustment: covers gas supply costs that went unpaid.
  • Volume balancing adjustment and tax cost adjustment: smaller charges or credits that true up delivery money and certain taxes.

A supplier can't make these go away.

The bottom of the bill lists taxes, such as the Chicago Municipal Tax, State Tax and State Gas Revenue Tax. The city and the state set them, not Peoples Gas.

Do you have a gas supplier?

Some homes buy gas from a different company, called an alternative gas supplier. If you have one, its name and price show in the supply part of your bill, in place of the utility's gas charge. On a Peoples Gas bill, that's where the Gas Charge would be. This is the one line worth checking closely.

A supplier's price can be fixed or variable. A variable price can climb fast in a cold snap. Check your price per therm against your utility's price this month. If yours is higher month after month, you may be paying more than you need to.

If your supplier's price is higher, you can leave. The ICC says a gas supplier must let you cancel without an early termination fee. You still pay for gas you already used. My guide to Illinois gas suppliers explains how. Note that Nicor says if you go back to Nicor, you have 120 days to pick another supplier or you stay with Nicor for one year.

Ways to soften winter bills

A budget plan. Illinois rules say utilities must tell customers about their budget payment plan and encourage its use. It spreads your yearly cost more evenly across the months, so winter doesn't hit all at once. If your account is current, you can join at any time of year. The utility reviews the plan partway through the year and adjusts it, in writing, if your use changes a lot. You can also leave the plan at any time.

A budget plan doesn't lower what you pay over a year. It makes the months more even. For many people on a fixed income, that's what matters.

Help paying. Illinois LIHEAP helps eligible homes with heating bills. Apply through Help Illinois Families (opens a new tab) or call 1-833-711-0374.

Winter shutoff protections. From December 1 through March 31, some homes can't be shut off for not paying, such as homes that get LIHEAP. Cold-weather rules also protect eligible homes on days forecast to be freezing or colder. See Winter shutoff rules and bill help.

Small things at home. Ask your gas utility about free or low-cost ways to use less, such as a home energy check. Even a little less gas adds up when winter use is so high.

Watch out for winter scams

Cold weather brings scam calls that threaten to shut off your heat. Your gas company won't ask for gift cards or payment apps. Hang up and call the number on your bill. The Federal Trade Commission explains more in Scammers pretend to be your utility company (opens a new tab).

Who to call

  • Your gas utility: the number is on your bill. Peoples Gas: 1-866-556-6001
  • Illinois Commerce Commission: 1-800-524-0795
  • Citizens Utility Board (CUB): 1-800-669-5556

Judy Saves is independent. I don't sell gas, and no supplier pays me. I'll never call you or knock on your door.

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