How Commercial Natural Gas Choice Works in Illinois
By Illinois Commercial Energy editorial team
Reviewed by JakenEnergy commercial energy team
Natural gas choice in Illinois looks like electricity choice on the surface — an eligible business can buy the gas supply competitively while the utility delivers it — but the rules differ by territory, and in one large territory the model is entirely different.
Delivery vs. supply for gas
- Delivery — the gas utility owns the pipes and meter, delivers the gas, and handles safety and emergencies. This stays with the utility.
- Supply — the gas commodity, often priced per therm. On utility service it is passed through as a purchased-gas cost that adjusts over time; an eligible business can instead contract supply with a licensed alternative gas supplier.
Where choice works — and where it's different
- Nicor Gas, Peoples Gas, North Shore Gas — eligible commercial customers can choose an alternative gas supplier through each utility's Choices for You program while the utility delivers the gas. See Nicor, Peoples, and North Shore.
- Ameren Illinois gas — there is no standard small-commercial supplier-choice program. Only larger non-residential customers can self-supply through Ameren's Rider T transportation service. In Ameren gas territory (much of central and southern Illinois, including Peoria and Springfield), a "switch your gas supplier" path does not exist for most commercial accounts.
Know your gas utility first
Because the rules are territory-specific, the first step is confirming the gas utility on a recent bill. Chicago is Peoples Gas; most northern suburbs are Nicor; Waukegan and parts of Lake County are North Shore Gas; and some communities (like Buffalo Grove) are split by address.
What to do with this
Confirm your gas utility, then follow the applicable path. For the full overview, see commercial natural gas in Illinois and, for Chicagoland specifics, the natural gas procurement guide.
Sources
- Illinois Commerce Commission — Natural Gas Utility authority
- Ameren Illinois — Natural Gas Choice (Rider T transportation)
- Nicor Gas — Our Service Area
- North Shore Gas — Service Area
Retail gas choice does not automatically save money; it is an option to evaluate for a specific account and territory.
Frequently Asked Questions
QCan Illinois businesses choose a natural gas supplier?
In Nicor Gas, Peoples Gas, and North Shore Gas territory, eligible commercial customers can buy gas supply from a licensed alternative gas supplier while the utility continues delivery. In Ameren Illinois gas territory there is no standard small-commercial supplier-choice program; only larger non-residential customers can self-supply through Ameren's Rider T transportation service.
QWhat is the difference between gas supply and delivery?
Supply is the gas commodity itself, often priced per therm; on utility service it is passed through as a periodically adjusted purchased-gas cost. Delivery covers the utility's pipes, metering, and applicable riders and taxes. A supplier contract prices the supply portion only.
QHow do I know which gas utility serves my business?
It depends on location: Peoples Gas serves the City of Chicago, Nicor Gas serves much of northern Illinois outside Chicago, North Shore Gas serves parts of Lake County and the far-north suburbs, and Ameren Illinois serves much of central and southern Illinois. Some communities sit on a boundary, so confirm from a recent bill.