NIPSCO projects higher winter heating bills for gas customers

Contributed By:The 411 News

With natural gas prices nearly doubling in the last year, NIPSCO announced this week its customers will likely see higher winter heating bills.

The winter bill projections do not relate to NIPSCO’s recent request made with the IURC in September to increase its natural gas base rates. That request will go through a comprehensive regulatory review process and any changes will not take effect until after a decision is made – expected in the second half of 2022.

The utility said gas prices are 92% higher this winter. But other factors are contributing to the anticipated increase in costs. U.S. storage balances are behind last year’s total and the five-year average storage balance at this time of year.

There are two primary components of natural gas bills – the cost of the natural gas itself and the cost of delivering the natural gas to customers. For the cost of natural gas itself – which is largely dependent upon the 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.

Before billing, natural gas commodity costs must be reviewed and approved by the Indiana Utility Regulatory Commission (IURC).

Over the course of the upcoming five month winter heating season — Nov. 1 to March 31 — NIPSCO’s average natural gas residential customers using 630 therms could expect to pay approximately $590 total. This compares to $422 last winter, and it represents about a $168 difference (40 percent) or $34 per month on average from Nov. to March.

Global demand for natural gas and a ramp up in industry operation is also putting pressure on the supply of natural gas. And, the lowered storage balances have driven up pricing in the short-term.

Story Posted:10/17/2021