NEWS
RELEASE








FOR
IMMEDIATE
RELEASE                                                                                                 FOR MORE
INFORMATION


March 25,
2009                                                                                        Contact:  Kary
Brunner, re: N-1010


630
388-2529


Media Contact:  Annette Martinez


630 388-2781






ILLINOIS
COMMERCE COMMISSION UNANIMOUSLY APPROVES RATE ORDER




Naperville,
Ill. – Nicor Inc. (NYSE:GAS) announced today that the Illinois Commerce
Commission (ICC) unanimously approved a base rate increase for its natural gas
distribution company, Nicor Gas, that will add about $2.50 to an average monthly
residential customer bill beginning in April 2009.  Even under the new
rates approved by the ICC’s order, Nicor Gas will continue to have the lowest
rates of any major natural gas utility in Illinois and among the lowest in the
entire United States.





The rate
increase would not apply to the cost of the gas itself, which Nicor Gas
purchases on the wholesale market and passes along to consumers without any
mark-up. The increase would only apply to what Nicor Gas charges to deliver the
gas to homes and businesses - typically between 15 to 20 percent of a customer's
annual bill.





The
commission's order provides for a $69 million increase in Nicor Gas' base
revenues.  The order also approves Nicor Gas’ request for an energy
efficiency rider.




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"Through
the dedication and hard work of its employees, Nicor Gas provides quality
service at a low cost to millions of Illinois families and businesses," said
Russ M. Strobel, Nicor Gas' Chairman, President and CEO. "This relentless focus
on controlling costs and serving our customers has enabled us to seek only three
modest rate increases in more than 20 years.  The ICC decision, which
will increase an average residential customer's bill by only about $2.50 per
month,  is a necessary step to enabling Nicor to continue its
tradition of being a high-value, low-cost provider," Strobel added.





Since the
company's last rate increase in 2005, Nicor Gas has invested approximately $750
million in capital projects and natural gas infrastructure. During this same
period, despite a record of being one of the most cost-efficient natural gas
utilities in the entire nation, Nicor Gas has experienced rising
expenses.





The
major terms of the ICC's order include, among other things:





--  A
base revenue increase of $69 million;





--  An
authorized return on equity of 10.17 percent;





--  An
authorized return of 7.58 percent on a rate base of $1,336.5
million;





--  A
recognition in base rates of higher operating costs, including bad debt
expenses;





--  An
energy efficiency rider to fund various energy efficiency programs;





--  A
10-year average for weather.





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Commercial
and industrial customers in varying rate classes will also experience modest
increases depending on their gas use and service options.





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.




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.




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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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