North Shore Gas Asks To Hike Rates In North Suburbs

WAUKEGAN, IL — About 163,000 natural gas customers from Winnetka to Wisconsin would see their energy bills rise under a proposed rate hike by North Shore Gas.

An average consumer's bill would rise by about $50 a year, starting next winter. As of September, nearly one in five of the company's customers had been assessed with late payment fees, according to a filing by the company with state regulators.

North Shore Gas, a subsidiary of Milwaukee-based WEC Energy Group, last raised rates in 2015. Since then, there have been changes to the company's costs, according to Theodore Eidukas, vice president for state regulatory affairs.

"A primary driver for this category is North Shore's ongoing significant investments in its distribution system," Eidukas said in a filing with state regulators. He said the second factor was its increased overall cost of borrowing money.

"The company's overall cost of capital is the required return on its investment (net of accumulated depreciation) in its utility assets," he said. "In order to attract capital for new investments, existing investors must receive a fair and adequate return on their investment."

According to the company's financial filings, net income was up by $1.6 million for the first six months of 2020, compared to last year, rising from $9.8 million to $11.4 million. The proposed rate hike would generate over $7.6 million in additional revenue, according to Eidukas.

The company's service territory includes Winnetka, Glencoe and eastern Lake County.

On average, North Shore Gas customers would see their monthly bills increase by about $4.25, according to Crain's Chicago Business, which first reported the utility's filing with the Illinois Commerce Commission.

The state regulatory agency has until October 2021 to rule on the request before a rate increase can go into effect.