Merrillville-based NIPSCO announced that natural gas residential customers can expect an increase in their winter heating bills compared to previous years.
Bills for natural gas residential customers are estimated to be 16% higher than last winter. 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, storage levels and 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, which is November through March, NIPSCO’s average natural gas residential customers using 625 therms could expect to pay about $665 in total over the five-month period. This compares to $575 during the previous winter. It represents about a $90 difference or $18 per month on average from November to March.
There are two components of natural gas bills – the cost of delivering natural gas to customers and the cost of natural gas itself. The cost of natural gas itself is largely dependent upon market prices. NIPSCO does not control the costs. The company passes them 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.
NIPSCO’s gas distribution system consists of two on-system storage facilities and connects to seven interstate pipelines providing access to North American supply basins.
