Winter Heating Bills Forecasted to Increase Compared to Last Year, Remain Lower than Recent Peak in 2022
Northern Indiana
Public Service Company (NIPSCO) LCC announced today that natural gas
residential customers can expect an increase in their winter heating bills this
season compared to last year. Based on current market projections and assuming
normal winter weather, bills for natural gas residential customers are
estimated to be 15 percent higher in contrast to cost at this same period in
2023, and 17 percent lower compared to the recent peak experienced in 2022.
Each year, NIPSCO and other Indiana energy companies provide
a forecast for home heating bills during the upcoming winter months.
Projections are based on market forecasts, supply trends and storage levels, as
well as normal weather forecasts. If temperatures are colder or warmer than
normal, usage amounts and bills could differ.
Over the course of
the upcoming five-month winter heating season — Nov. 1 to Mar. 31 — NIPSCO’s
average natural gas residential customers using 625 therms could expect to pay
approximately $555 total. This compares to $483 during last winter’s heating season,
and it
represents about a $72 difference (15 percent) or $14.40 per
month on average from November to March.
There are two primary components of natural gas bills – the
cost of delivering natural gas to customers and the cost of natural gas itself.
A NIPSCO natural gas base rate increase was approved by the
Indiana Utility Regulatory Commission (IURC) this summer, and the first phase
went into effect in August 2024 with a second step change to occur in Q1 2025,
no later than March 1, 2025. The change in natural gas base rates relates to
the costs associated with delivering natural gas to customers, which comprises
a smaller portion of the bill. NIPSCO’s projected increase in this winter’s gas
bill is primarily attributed to the most recent rate increase approved by the
IURC.
For the cost of natural gas itself – which is largely
dependent upon market prices – NIPSCO does not control these costs. The company
passes them directly through to customers with no markup and does not profit on
that portion of the bill. Natural gas commodity costs must be reviewed and
approved by the IURC. Natural gas market prices are flat in comparison to last
year.
To help ensure customers receive the best price for natural
gas, NIPSCO purchases gas in the market from a variety of supply sources
throughout the year. Gas storage is also used to help offset market price
volatility by purchasing gas throughout the summer months and putting that gas
into storage for use during the winter months. Purchasing supplies over time
levels out the peaks and valleys of natural gas prices and provides more price
stability for our customers. NIPSCO’s gas distribution system consists of two
on-system storage facilities and connects to seven interstate pipelines
providing access to major North American supply basins.
Managing costs to ensure the delivery of natural gas to
homes and businesses without compromising safety, reliability and integrity is
vital, and NIPSCO is improving its systems and implementing technologies to
create long-term efficiencies for the benefit of customers.
Billing and Payment Options
Customers who are experiencing financial difficulties are
encouraged to visit nipsco.com/assistance or call NIPSCO’s Customer Care Center
at 1-800-464-7726 as soon as possible to determine what options might be
available for their situation. Some of those solutions include:
Low Income Home Energy Assistance Program
(LIHEAP): LIHEAP support is available to households that are at or below 60
percent of the State Median Income (SMI). Customers can learn more and find out
if they qualify at eap.ihcda.in.gov or call 2-1-1. The online application
portal opened to the public on Oct. 1, 2024. Paper application will be
available to the public on Nov. 1. Applications are taken through April 14,
2025, at 5 p.m. EST.
Customer Assistance for Residential Energy
(CARE) Discount Program: In addition to the assistance available through
LIHEAP, the NIPSCO CARE program is designed to provide further bill reductions
to LIHEAP-approved customers. Once enrolled in LIHEAP, customers are
automatically enrolled in the program, and reductions range from 15 to 32
percent, depending on the same criteria used by the state in determining the
level of assistance.
Flexible Payment Plans: Payment
Agreements: NIPSCO has expanded its payment plan agreements to offer its most
flexible payment plans to customers that need financial support, including
three-, six- and 12-month plans. Customers can learn more and enroll at NIPSCO.com/PaymentPlans.
Budget Plan: A free service to all NIPSCO
customers to help manage their monthly energy bills by spreading out gas costs
over an entire year. Learn more at NIPSCO.com/budget.
For more information on billing options and payment
assistance, visit NIPSCO.com/assistance. Customers looking to quickly find
information 24 hours a day, seven days a week can use NIPSCO’s Chat feature
located in the bottom right-hand corner of its website (NIPSCO.com) or via the
mobile app. Customers may also contact the NIPSCO Customer Care Center at
1-800-4-NIPSCO Monday-Friday, 7 a.m. to 7 p.m. CT.
Energy- and Money-Saving Programs
Usage makes up the largest portion of the average energy
bill. Because of this, NIPSCO offers energy-efficiency programs to help manage
usage and, in turn, bills. A full list of programs, rebates, and tips available
to NIPSCO customers can be found at NIPSCO.com/SaveEnergy.