Key Takeaways
- Major Price Increases: Nicor Gas, North Shore Gas, and Peoples Gas have all raised their supply rates effective January 1, 2026, with Nicor customers seeing a massive 50% increase year-over-year.
- Global and Local Causes: The spike is caused by record levels of U.S. gas exports linking local prices to the global market, worsened by a severe cold snap and tornado outbreak in late December that drove up demand.
- Rising Delivery Fees: In addition to higher gas costs, households are burdened by increased delivery rates and fixed monthly charges, creating a “double whammy” that significantly inflates total heating bills.
- Guidance for Consumers: To manage costs, experts recommend checking out alternative energy suppliers and immediately applying for financial aid through LIHEAP or utility-specific programs like “Share the Warmth” if needed.
If you live in Northern Illinois or the Chicago metropolitan area, your heating bill just got heavier. Effective January 1, 2026, the three major natural gas utilities serving the region, Nicor Gas, North Shore Gas, and Peoples Gas, have all increased their supply rates.
The most dramatic jump hits the suburbs, where Nicor Gas customers are seeing a 50% increase compared to this time last year.
Here is everything you need to know about why your bill is going up, which cities are affected, and where you can find help this winter.
The New Numbers: What You Are Paying Per Therm
In Illinois, the price of gas (the “supply charge”) changes monthly. Utilities are legally required to pass this cost through to you without a markup. However, rising global demand and volatile local weather have driven these prices up across the board for January.
- Nicor Gas: $0.42 per therm
- The Shock: This is a massive jump from the $0.28 rate seen in January 2025.
- North Shore Gas: $0.5323 per therm
- The Premium: North Shore continues to have the highest supply rate in the region, up over 19% from last year.
- Peoples Gas: $0.4181 per therm
- The City Rate: While the supply rate is similar to Nicor’s, Chicagoans face significantly higher delivery fees.
Why Are Rates Spiking Now?
Two main factors are colliding to drive up prices this month:
- The “Export” Effect: The U.S. is exporting record amounts of Liquefied Natural Gas (LNG) to Europe and Asia. This links our local prices to the more expensive global market. Essentially, you are competing for gas with buyers in Berlin and Tokyo.
- The December 2025 Weather Whiplash: Late last month, Illinois experienced a rare and chaotic weather event. On December 28, tornadoes struck Central Illinois, followed immediately by a deep freeze. This sudden drop in temperature forced utilities to buy expensive gas on the “spot market” to keep homes warm, a cost that is now showing up in your January bill.
Who Is Impacted? (City Breakdown)
Your rate depends on which utility pipes gas to your home. Check the list below to see where your city falls.
Nicor Gas Territory ($0.42/therm)
Serves most suburbs and Northern Illinois counties.
- Major Cities: Aurora, Joliet, Naperville, Elgin, Rockford, Schaumburg, Evanston, Oak Park, Cicero, Bolingbrook, Tinley Park, Des Plaines, and Wheaton.
- Counties: Cook (suburban), DuPage, Kane, Will, Lake (inland), and McHenry.
North Shore Gas Territory ($0.53/therm)
Serves the Lake Michigan shoreline and northern suburbs.
- Major Cities: Waukegan, Highland Park, North Chicago, Winnetka, Glencoe, Lake Forest, Zion, Gurnee, and Libertyville.
Peoples Gas Territory ($0.41/therm)
Serves the entire city limits of Chicago.
- Impact Area: From Rogers Park to Hegewisch, if you live within the City of Chicago, this rate applies to you.
The “Double Whammy” Warning
It’s not just the cost of gas that is rising. Delivery rates, the cost to bring the gas to your home, are also up.
- Nicor Customers: In November 2025, regulators approved a delivery rate hike that added roughly $4.25 to the average monthly bill.
- Peoples Gas Customers: You continue to pay a fixed monthly charge of $25.81 just to have a meter, before you even use a single therm of gas.
What You Can Do: Assistance is Available
If you are worried about affording these higher bills, apply for assistance immediately. Funds are often first-come, first-served.
- LIHEAP: The federal Low Income Home Energy Assistance Program is accepting applications. For the 2025-2026 season, a family of four with a 30-day gross income of $6,407 or less is eligible.
- Shield of Caring (Nicor): If you are a Nicor customer who earns too much for LIHEAP but still needs help, apply for the Bill Payment Assistance program, administered by the Salvation Army.
- Share the Warmth: Peoples Gas and North Shore Gas customers can apply for grants up to $200 through the Share the Warmth program.
Consumer Tip: Check your bill to ensure you are paying the utility rate listed above. If your rate is higher, you may be signed up with an “Alternative Retail Energy Supplier.” In this volatile market, the Citizens Utility Board generally recommends sticking with your regulated utility to avoid hidden fees and price spikes.
About the Author
David has been an integral part of some of the biggest utility sites on the internet, including InMyArea.com, HighSpeedInternet.com, BroadbandNow.com, and U.S. News. He brings over 15 years of experience writing about, compiling and analyzing utility data.