Why is my Nicor or Peoples Gas bill so high?

Delivery is the biggest piece. The Citizens Utility Board says delivery charges are roughly two-thirds of a Nicor bill, and it reported in June 2026 that all nine major Illinois gas utilities were charging more for gas supply than a year earlier, led by Nicor at about 50% higher.

Pipe replacement is a big reason. The estimated cost of Peoples Gas' program to replace aging cast- and ductile-iron mains grew from $1 billion to more than $12.8 billion, according to the Citizens Utility Board, and the Illinois Commerce Commission refocused the program in 2025 on retiring that pipe by 2035. Those costs are recovered through delivery rates. Peoples Gas sought a $202.3 million increase in January 2026, later reduced to $144 million, and a final decision is expected in November 2026.

Possibly a little lower. The U.S. Energy Information Administration's October 2026 winter outlook expects homes heating with gas to spend about 9% less nationally this winter, and about 10% less in the Midwest, helped by relatively high gas inventories. Delivery increases and a cold snap can still push your own bill up.

Longer term, Wood Mackenzie warned in July 2026 that the era of cheap U.S. natural gas is ending as LNG exports and power demand grow, so many homeowners are looking at ways to use less gas.

Not directly: solar panels make electricity, not gas. Solar helps when you move gas uses to electricity, such as switching to a heat pump, a heat pump water heater, an induction range or an electric car. Then your panels cover part of the new electric use instead of buying it from ComEd or Ameren.

A cold-climate heat pump can heat an Illinois home efficiently through most of the winter, and many homes keep a gas furnace as backup for the coldest days. ComEd offers heat pump rebates through its energy efficiency program when a participating contractor installs the system. See solar and heat pumps in Illinois.

• Seal and insulate. Air sealing and attic insulation cut heating use; Nicor, Peoples Gas and Ameren run energy efficiency programs that help pay for them.
• Turn the thermostat down at night and when you're away, with a smart or programmable thermostat.
• Service the furnace so it runs efficiently.
• Be careful with alternative gas suppliers. Compare any offer with the utility's supply price before switching.
• Budget billing spreads winter costs across the year but doesn't lower the total.

Your electric bill has its own story: see why ComEd bills are so high and why Ameren bills are so high.