FOR
IMMEDIATE
RELEASE                                                                                                                                   
FOR MORE INFORMATION


FEBRUARY 03,
2010Contact:  Kary Brunner, re: N-1022


630
388-2529


Media
Contact:  Annette Martinez


630
388-2781






NICOR
RECEIVES APPROVAL FOR BAD DEBT RECOVERY MECHANISM




Naperville,
Ill. – (February 3, 2010), Nicor Inc. (NYSE:GAS) announced today that the
Illinois Commerce Commission (ICC) approved, on February 2, 2010, a rate
adjustment mechanism for bad debt expense (“bad debt rider”) that was filed for
in 2009 by the company’s gas distribution business, Nicor Gas.  The
approved bad debt rider provides for recovery from (or refund to) customers of
the difference between the actual bad debt expense Nicor Gas incurs on an annual
basis and the benchmark bad debt expense included in its rates for the
respective year.  As a result, Nicor Gas will record a net recovery
related to 2008 and 2009 of approximately $32 million; substantially all this
amount is expected to be collected in 2010.  In 2010, the benchmark,
against which 2010 actual bad debt expense will be compared, is approximately
$63 million.




Nicor
Inc. (NYSE: GAS) is a holding company and is a member of the Standard &
Poor’s 500 Index. Its primary business is Nicor Gas, one of the nation’s
largest natural gas distribution companies.  Nicor owns Tropical
Shipping, a containerized shipping business serving the Caribbean region and the
Bahamas. In addition, the company owns and/or has an equity interest in
several energy-related businesses.  For more information, visit the
Nicor website at www.nicor.com.








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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," "ultimate," 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 ICC review, 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 disasters; 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; accidents, leaks,
equipment failures, service interruptions, environmental pollution, and other
operating risks; 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
customers, transporters, suppliers and contractors; labor relations; and acts of
terrorism.




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






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