Nicor Inc. (NYSE:GAS) today announced that it has reached a settlement agreement with the United States Securities and Exchange Commission (”SEC”) resolving charges filed today against the company in connection with the SEC’s investigation of the results of the company. The company had announced in 2002 that the SEC had begun a formal investigation in connection with the accounting for natural gas costs pursuant to the Performance-Based Rate plan, which was in effect from 2000 to 2002 at Nicor Gas Company, the company’s gas distribution subsidiary.

Under the settlement, Nicor has agreed, without admitting or denying any wrongdoing, not to violate in the future provisions of the United States securities laws. The settlement also requires the company to pay disgorgement of one dollar and a penalty of $10 million, a portion of which may be designated for use for a Fair Fund, as authorized under the Sarbanes-Oxley Act. As previously announced, Nicor recorded a charge of $10 million to its 2006 second quarter earnings in connection with the penalty to be paid to the SEC.

[1] Morningstar.com: United States Securities and Exchange Commission Approves Nicor Settlement