Nicor Inc.
                                                                       Form 8-K
                                                                   Exhibit 99.1


FOR IMMEDIATE RELEASE                  FOR MORE INFORMATION
August 19, 2005                        Financial Contact:  Mark Knox, re: N-941
                                                           630 388-2529

                                       Media Contact:      Don Ingle
                                                           630 388-2939


ADMINISTRATIVE LAW JUDGES ISSUE PROPOSED RATE ORDER

Naperville, IL - Nicor Inc. (NYSE: GAS) announced that on August 17, 2005,
the Administrative Law Judges (ALJs) issued a proposed order in the Nicor Gas
rate case that currently is pending before the Illinois Commerce Commission
(ICC).  The proposed order recommends a revenue requirement increase of
approximately $54.7 million, a rate of return on rate base of 8.90 % and a
rate of return on equity of 10.59%. Because the proposed order shifts certain
revenues and credits between base rates and Nicor Gas' purchase gas
adjustment rider, Nicor Gas estimates that the proposed net revenue increase
is approximately $36 million when evaluated on a basis comparable to its
requested net revenue increase of $77.6 million. Nicor Inc. estimates each
$10 million of increase in Nicor Gas' revenue would increase Nicor Inc.'s
annualized earnings per share by approximately $0.14.  The proposed order is
a recommendation by the ALJs, and Nicor Gas and other parties to the
proceeding will have the opportunity to file written briefs to identify
points where they agree or disagree with the proposed order. After
considering these briefs, the ALJs may modify the proposed order and will
submit their recommendation to the ICC commissioners. The ICC commissioners
will then make the final decision on Nicor Gas' rate increase request and
that decision may differ from the ALJs' recommendation. That final decision
is expected to be issued no later than October 2, 2005.

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Nicor Inc. (NYSE: GAS) is a holding company and is a member of the S&P 500. Its
principal businesses are Nicor Gas, one of the nation's largest natural gas
distribution companies, and Tropical Shipping, a containerized shipping
business serving the Caribbean region and the Bahamas. Nicor also owns and has
an equity interest in several energy-related businesses.  For more information,
visit the Nicor Web site at www.nicor.com.

Caution Concerning Forward-Looking Statements

This document includes certain forward-looking statements about the
expectations of Nicor and its subsidiaries and affiliates.  Although Nicor
believes these statements are based on reasonable assumptions, actual results
may vary materially from stated expectations.  Such forward-looking
statements may be identified by the use of forward-looking words or phrases
such as "anticipate," "believe," "expect," "intend," "may," "planned,"
"potential," "should," "will," "would," "project," "estimate," or similar
phrases.  Actual results may differ materially from those indicated in the
company's forward-looking statements due to the direct or indirect effects of
legal contingencies (including litigation) and the resolution of those
issues, including the effects of an Illinois Commerce Commission (ICC) review
and Securities and Exchange Commission (SEC) and U.S. Attorney inquiries, and
undue reliance should not be placed on such statements.  Other factors that
could cause materially different results include, but are not limited to,
weather conditions; natural gas and other fuel prices; fair value accounting
adjustments; inventory valuation; health care costs; insurance costs or
recoveries; legal costs; borrowing needs; interest rates; credit conditions;
economic and market conditions; tourism and construction in the Bahamas and
Caribbean region; energy conservation; legislative and regulatory actions;
tax rulings or audit results; asset sales; significant unplanned capital
needs; future mercury-related charges or credits; changes in accounting
principles, interpretations, methods, judgments or estimates; performance of
major suppliers and contractors; labor relations; and acts of terrorism.

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Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of this date.  Nicor undertakes no obligation
to publicly release any revision to these forward-looking statements to
reflect events or circumstances after the date of this filing.

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