The ICC is committed to ensuring you have the necessary information to make an informed decision about choosing your natural gas supplier. If you are considering switching natural gas suppliers, please take a moment to review information on this website to help you better understand your choices.
The natural gas itself, meets the same requirements and pipeline standards whether purchased from the utility or an AGS. Whether you decide to purchase your natural gas supply from your local gas utility or switch to another company for your gas supply, your local natural gas utility will continue to deliver the gas to your home or business. In Illinois, residential and small business customers of Nicor Gas, North Shore Gas, and Peoples Gas utilities currently have the option to purchase their natural gas supply from an Alternative Gas Supplier (AGS). The taxes that apply may differ depending on whether you purchase gas from the utility or from and AGS. State and Local Taxes are also included on customer bills. The rates charged by an AGS are not regulated or subject to review by the ICC. If you choose to purchase your gas from an AGS, the gas supply will be charged at the rate you agree upon with the supplier in your contract. North Shore Gas and Peoples Gas customers will see the gas supply charge on their bill as the Gas Charge. Nicor Gas customers will see the gas supply charge on their bill as the Natural Gas Cost. The gas utilities' PGA filings undergo an annual prudency review by the ICC and gas utilities are not permitted to mark up the cost before passing that price along to its customers. The PGA includes, among other items, the anticipated cost of gas for the month as well as adjustments from prior periods to true-up under and over recoveries. Under the PGA mechanism, the price you pay per therm of gas consumed can change monthly. If you purchase your gas supply through the local utility, the utility uses a regulatory mechanism called the Purchased Gas Adjustment (PGA) to compute your monthly gas supply cost. For a residential customer using natural gas to heat a home, the supply charge will account for approximately 75 percent of your bill on an annual basis. The gas supply charge is the price you pay for the natural gas commodity consumed in your home or business in a given month. In certain parts of Illinois, customers can choose who they want to purchase their natural gas from. The local utility continues to provide this service regardless of whether the gas is purchased from the utility or an AGS. It includes charges for things like meter reading, billing, equipment and maintenance and is regulated by the Illinois Commerce Commission (ICC). This charge is to compensate your local utility for the cost of maintaining the lines and transporting natural gas to your home or business. You cannot choose who provides your natural gas delivery service. This is the price you pay to your local gas utility for the cost of transporting or delivering natural gas from the City Gate to your home or business regardless of whether the gas is purchased from the utility or an AGS. Natural gas utilities offering AGS choice programs have additional information regarding the charges on your gas bill at the following links. The delivery of natural gas to your house or business will not be interrupted when you switch gas suppliers. Regardless of your choice of supplier, your local gas utility will continue to deliver the natural gas to your house or business. Residential and small business customers in some areas of Illinois have the choice to purchase their gas supply from their utility or an Alternative Gas Supplier (AGS). Your natural gas bill has three main components – the delivery service charge, gas supply charge and taxes.
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