Natural gas prices will increase 50 to 60 percent this winter, but Northern Indiana Public Service Co. officials say it's not their fault.

Julie Van De Water, of NIPSCO, said the natural gas producers dictate the prices. NIPSCO is just a distributor. By law, customers pay only what NIPSCO pays.

"We do not make a profit" on the gas itself, said Van De Water.

NIPSCO anticipates some of their customerS will have difficulty paying their bills.

"As the weather is getting cooler, people are getting more and more concerned," said Van De Water.

NIPSCO has several programs to help people pay their bills, she said.

One is called the Gift of Warmth Program. This program assists people in financial need with utility bills. Customers can donate to this program. Every dollar raised is matched with $2 by NIPSCO shareholders. Combined Community Services gets all the funding from this program. Clients must have a significant need to be eligible for assistance.

Another program is called the Budget Plan. This plan averages out a customer's electrical and gas usage over 12 months. NIPSCO then comes up with a figure that will be a fixed amount for that customer to pay.

Price Protection Services has two options: a fixed price option or a capped price option. Customers on a fixed price option are locked in to a commodity price they pay for 12 months. A customer with a capped price can pay less if gas prices happen to go down. However, the customer will never pay more than the capped price.

Van De Water said the reason for the steep price increases has to do with supply and demand. The last couple of years had incredibly warm winters and people weren't keeping their thermostats very high. Because gas wasn't used as much, storage was high. Natural gas providers have other uses for gas and the weather is getting cooler. Storage levels are dropping because of high demand. Therefore, the price has been raised.

This is not a matter of shortage, said Van De Water.

"We won't have a problem meeting our customers' needs," she said. "It'll just cost us more."

Van De Water is expecting very cold temperatures, especially in December, January and February.

"This year, it will be a typical winter," she said. If temperatures get really cold, gas prices could exceed a 60 percent increase, but Van De Water doesn't anticipate this.

NIPSCO offers a free book called "99 Ways to Conserve Energy." This book can be obtained by calling 800-4NIPSCO. [[In-content Ad]]