Nicor agrees to $64 million refund

• Reprints

Updated: March 15, 2012 8:09AM

Nicor Gas ratepayers will see a refund at some point in a dispute that has dragged on for more than 10 years, after Nicor agreed to pay a $64 million settlement over a performance-based rate program.

Nicor parent company AGL Resources Inc. disclosed the settlement in a filing Monday with the U.S. Securities and Exchange Commission.

But the date and amount of the refund won’t be decided until the Illinois Commerce Commission, the body responsible for rate setting, grants final approval.

Other parties needed to resolve the issue, such as the Citizens Utility Board and Illinois Attorney General Lisa Madigan’s office, have not yet agreed to the proposed settlement terms.

CUB had previously said ratepayers should be repaid $280 million; Madigan’s office put the tab at $260 million.

Under the performance-based rate program, Nicor compared its natural gas costs to a market-sensitive benchmark and shared any yearly savings with sales customers.

Nicor conceded no wrongdoing. Rather, the utility chose to resolve the issue so it could “focus on activities that add value for our customers and shareholders,” said Nicor spokeswoman Annette Martinez.

CUB Executive Director David Kolata said, “By agreeing to the settlement, Nicor is implicitly admitting it overcharged consumers at a time when natural gas prices were at record levels.

“CUB and the Attorney General’s Office have built a strong case that shows the company should issue a substantially higher refund. That’s why we continue to fight, and we are confident that the Illinois Commerce Commission will make a pro-consumer ruling,” Kolata said.

The Illinois Attorney General’s office could not be reached Monday due to the Lincoln Day holiday.