News Releases

North Shore Gas

For Release: 02/15/2011

North Shore Gas Seeks Rate Increase

New Rates, if Approved, Would Not Take Effect Until 2012

Waukegan, IL - North Shore Gas announced today that the company is seeking an increase in the amount it charges to deliver natural gas. The proposed rate adjustments filed with the Illinois Commerce Commission is the first step in an 11-month regulatory review process.

The company is seeking rate adjustments to meet the increased cost of delivering safe, reliable natural gas in today's economic climate. While costs have increased in recent years, declining sales and a shrinking customer base have cut into the company's revenue. "During the economic slowdown, the company's overall costs have continued to rise," said Will Evans, Jr., president of North Shore Gas. "Our expenses associated with maintaining the system and our investment in the delivery system have also continued to rise, along with a wide range of back office administrative costs."

If approved, the new rates would represent a monthly increase of about $3.00 for the typical North Shore Gas small residential sales customer. The proposed increase applies only to the delivery charge, which makes up about 30 percent of a customer's bill. The other parts of the bill include the actual cost of natural gas (about 60%), which is passed on at no mark-up to customers, and state and local taxes and other adjustments (about 10%). If approved, the new delivery rates would go into effect in early 2012.

In 2010, the company took significant steps to contain costs and to operate with an eye toward cost savings for customers by instituting numerous cost-saving administrative measures such as mandatory one-week furloughs for all employees and a corporate-wide reduction in the administrative workforce.

"We understand many of our customers are struggling with rising costs just as our company is grappling with the ever- increasing costs of doing business. The proposed rate adjustment we are seeking for the company is vital in order to access the capital necessary to continue investing in the safety and reliability of its infrastructure," adds Evans.

North Shore Gas said they would continue their long history of working with community organizations, elected officials and others to help low and fixed income residents meet their energy needs. The company funds the Share the Warmth program that provides matching grants to at-risk customers and continuously provides information on programs, services and resources that will assist customers with their bills.

In addition, the company works closely with customers who are struggling to allow them to pay down their bills over time by making payment arrangements and supports programs that help to educate customers about energy efficiency and conservation which helps them to better manage and lower their energy needs.

About North Shore Gas

North Shore Gas is a regulated natural gas delivery company that serves approximately 158,000 residential, commercial and industrial customers in 54 communities in Northeastern Illinois. The company is a subsidiary of Integrys Energy Group, Inc. (NYSE: TEG). For more information on North Shore Gas visit the company's website:

For More Information, Contact:

  • Bonnie Johnson (Media)
    Manager, Public Relations
    312-907-7333 (Cell)