Utilities Warn of 30-37% Increase in Default Service Rate

North Shore Gas and Peoples Gas have warned Illinois customers about substantial increases in default service rates projected for April.

Specifically, North Shore Gas said that its gas charge for April is expected to be about $1.21 per therm. That's 37% higher than the current rate of $0.8816 per therm.

The gas charge includes the actual purchase cost, transportation and storage of natural gas, which can vary month to month, but is passed through to customers with no markup, North Shore said.

Peoples Gas said that its gas charge for April is expected to be about $1.19 per therm. That's 27% higher than the current rate of $0.9336 per therm.

Retail suppliers at Peoples and North Shore have residential fixed rate offers listed for as low as $0.59 per therm

"The sustained colder-than-normal temperatures which broke several winter records, has meant consumers are using more natural gas to stay warm and comfortable. This increase in usage coupled with spikes in the cost of purchasing and transporting natural gas is expected to lead to higher than normal bills this spring," the utilities said.