Natural Gas Market Prices To Hike Winter Heating Bills
October 15, 2021 at 9:13 p.m.
By Staff Report-
Each year, NIPSCO and other Indiana energy providers provide a forecast for home heating bills during the upcoming cold weather season. Projections take into account market forecasts, supply trends and storage levels and are based on normal weather projections. If temperatures are colder or warmer than normal, usage amounts and bills could differ, according to a news release from NIPSCO.
NIPSCO has been the lowest natural gas cost provider in Indiana on average over the last 10 years according to IURC comparisons, stated the release.
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). Keeping costs down related to the delivery of natural gas to homes and businesses is essential, and NIPSCO is actively working to institute technologies and other system improvements to create long-term efficiencies for the benefit of customers.
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%) or $34 per month on average from November to March.
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. 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.
There are a multitude of factors contributing to the anticipated increase in costs this winter season, including that natural gas market prices are 92% higher than last winter and U.S. storage balances are behind last year’s total and the five-year average storage balance at this time of year. 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.
The winter bill projections provided 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.
Customers who are experiencing financial difficulties are encouraged to visit nipsco.com/assistance or call NIPSCO’s Customer Care Center as soon as possible to determine what options might be available to offer help. Some of those solutions include:
The Customer Care Center is open Monday-Friday, 7 a.m. to 7 p.m. CT. For more information on billing options and payment assistance, visit NIPSCO.com/assistance.
Each year, NIPSCO and other Indiana energy providers provide a forecast for home heating bills during the upcoming cold weather season. Projections take into account market forecasts, supply trends and storage levels and are based on normal weather projections. If temperatures are colder or warmer than normal, usage amounts and bills could differ, according to a news release from NIPSCO.
NIPSCO has been the lowest natural gas cost provider in Indiana on average over the last 10 years according to IURC comparisons, stated the release.
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). Keeping costs down related to the delivery of natural gas to homes and businesses is essential, and NIPSCO is actively working to institute technologies and other system improvements to create long-term efficiencies for the benefit of customers.
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%) or $34 per month on average from November to March.
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. 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.
There are a multitude of factors contributing to the anticipated increase in costs this winter season, including that natural gas market prices are 92% higher than last winter and U.S. storage balances are behind last year’s total and the five-year average storage balance at this time of year. 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.
The winter bill projections provided 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.
Customers who are experiencing financial difficulties are encouraged to visit nipsco.com/assistance or call NIPSCO’s Customer Care Center as soon as possible to determine what options might be available to offer help. Some of those solutions include:
The Customer Care Center is open Monday-Friday, 7 a.m. to 7 p.m. CT. For more information on billing options and payment assistance, visit NIPSCO.com/assistance.
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