NEWS
RELEASE
 
 
 FOR
IMMEDIATE
RELEASE                                                                                                  FOR MORE
INFORMATION
 February
10,
2009                                                                                              Contact:  Kary
Brunner, re: N-1008
 630
388-2529
  
   ADMINISTRATIVE
LAW JUDGES ISSUE PROPOSED RATE ORDER
  Naperville,
Ill. – Nicor Inc. (NYSE:GAS) announced that on February 9, 2009, 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
$68.8 million, a rate of return on rate base of 7.57 percent and a rate of
return on equity of 10.17 percent.  The proposed order compares to
Nicor Gas’ requested revenue requirement increase of approximately $140.4
million, a rate of return on rate base of 9.27 percent and a rate of return on
equity of 11.15 percent.  The proposed order also includes approval of
a volume balancing rider that would adjust rates to recover fixed costs and an
energy efficiency rider that would fund energy efficiency
programs.  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 March 25, 2009.  Rates would be effective
prospectively.
 
 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 has an equity interest in
several energy-related businesses.  For more information, visit the
Nicor Web site at www.nicor.com.
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 Page
2
 
 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.
  -30-