MERRILLVILLE – NIPSCO announced Wednesday that natural gas residential customers can expect a decline in their winter heating bills this season compared to previous years.
Based on current market projections and assuming normal winter weather, bills for natural gas residential customers are estimated to be 24% lower in contrast to cost at this same period in 2022, and 11% lower compared to the same period in 2021, according to a news release from NIPSCO.
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 and storage levels, as well as 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 — Nov. 1 to March 31 — NIPSCO’s average natural gas residential customers using 636 therms could expect to pay approximately $515 total. This compares to $681 during the winter heating season last year and it represents about a $166 decrease (24%) or $33.20 per month on average from November to March.
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 market prices – NIPSCO does not control these costs, the release states. The company passes them directly through 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 Indiana Utility Regulatory Commission (IURC).
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 by purchasing gas throughout the summer months and putting that gas into storage for use during the winter months.
Purchasing supplies over time levels out the peaks and valleys of natural gas prices and provides more price stability for NIPSCO customers, according to the release. 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 several factors contributing to the anticipated decrease in costs this winter season, including natural gas market prices are 51% lower than last winter. Current market prices are lower than last year due to increased production levels, lower exports due to softening European demand and filling storage at substantially lower prices than previous years.
Managing costs to ensure the delivery of natural gas to homes and businesses without compromising safety, reliability and integrity is vital, and NIPSCO is improving its systems and implementing technologies to create long-term efficiencies for the benefit of customers, the release states.
Customers who are experiencing financial difficulties are encouraged to visit nipsco.com/assistance or call NIPSCO’s Customer Care Center at 1-800-464-7726 as soon as possible to determine what options might be available for their situation.