NIPSCO: Dig deeper to heat home

Company warns of steep hike in winter natural gas prices due to several factors

NIPSCO’s natural gas customers could see their bills rise around 40% this winter, according to the Merrillville-based utility company’s projections.

Northern Indiana Public Service Co. stated in a release Thursday that the average residential customer using 630 therms could expect to pay about $590 total from November to March. That’s $168, or 40%, more than last year’s total of $422.

The company said its projection is based on normal winter weather and takes into account market forecasts, supply trends and storage levels.

Company spokeswoman Wendy

Lussier said there are a number of factors contributing to the projected hike, including a 92% increase in natural gas market prices over last winter, and the fact that U.S. gas storage balances are behind last year’s total and the fiveyear average storage balance at this time of year.

Gas storage is used to help offset market price volatility, according to NIPSCO.

“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 shortterm,” the company stated.

There are two primary components of a natural gas bill — the cost of natural gas and the cost of delivering the natural gas to customers.

NIPSCO said it doesn’t control the natural gas prices, which are largely dependent on the market prices. They are passed directly to customers.

Lussier said there will be no changes in the gas delivery portion of the bill.

The winter bill projections provided do not relate to NIPSCO’s request with the Indiana Utility Regulatory Commission in September to increase its natural gas base rates by about 17%, or around $20 a month, for the typical customer. That request needs to go through a comprehensive regulatory review process.

If approved by the IURC, the rate change wouldn’t go into effect before Sept. 1, 2022.

NIPSCO said it has been the lowest natural gas cost provider

in Indiana on average over the last 10 years, citing the IURC’s 2021 Residential Bill Survey. Lussier said NIPSCO customers have been benefiting from low gas prices over the last several years.

“Prices are starting to return to 2014 levels,” Lussier said.

There are a variety of options for customers who are experiencing financial difficulties, both through NIPSCO and local agencies.

NIPSCO offers payment arrangements that allow customers to spread their past due balance over six months and personalized payment plans (call 800-464-7726 or visit NIPSCO.com/paymentplans or NIPSCO.com/assistance.NIPSCO customers can also enroll in the utility’s budget plan, which offers a set payment each month, based on usage.

Based on income levels, customers may qualify to receive local, state and federal utility assistance dollars through the Energy Assistance Program, administered through Northwest Indiana Community Action.

Blossom Madon, executive director of Lake County Community Services, said the agency has already been receiving calls about energy assistance, although the program doesn’t begin until Nov. 1.

She said the number of individuals the county agency is able to assist is determined by NWICA.

Ross Township Trustee Joseph Shudick said he’s expecting an onslaught of calls for energy assistance this year, but he refers the callers to NWICA.

NWICA didn’t immediately return a phone call on Thursday.

Between Dec. 1 and March 15, natural gas providers in Indiana do not disconnect service to customers enrolled in the state Low Income Home Energy Assistance.