Bill assistance and energy-saving resources available as natural gas prices could drive increase to customer bills
Evansville, Ind. – Oct. 9, 2024 – CenterPoint Energy is encouraging customers in its Indiana South natural gas territory to prepare for an increase in natural gas bills this heating season. Last winter, customers benefited from lower wholesale natural gas prices due to a less volatile natural gas market. However, this year, natural gas commodity costs are projected to increase over last year’s heating season as demand is projected to continue to grow. These factors may lead to higher bills compared to last year. Yesterday, the Energy Information Administration (EIA) issued its 2024-2025 winter outlook forecasting heating bills. As a reminder, CenterPoint does not make any profit from the overall cost of natural gas; it is passed on to customers at cost.
This year, based upon projected natural gas commodity costs and normal winter weather, customers can expect to pay on average $129 a month, over the 5-month heating season of November through March. By comparison, last year’s average bill amount for the 5-month period was around $110 a month.
“With natural gas prices projected to increase this winter, we encourage customers to explore all available resources as soon as they can,” said Ashley Babcock, Vice President, Indiana and Ohio Gas. “For customers who may be facing financial hardship, we have tips, tools and programs to help them manage their bills and save energy.”
CenterPoint utilities are not allowed to markup from the purchase and sale of natural gas. Natural gas is a commodity bought and sold in a national deregulated market where prices fluctuate daily due to supply and demand.
Only natural gas costs actually incurred and approved by the Indiana Utility Regulatory Commission are recovered from customers. CenterPoint purchases natural gas on behalf of its customers and then passes those costs on to customers through the gas cost adjustment, which is listed on the bill as “Gas Cost Charge.”
Even with these increases, natural gas continues to be one of the most affordable heating sources for most customers in Indiana. In fact, CenterPoint gas customers in the utility’s Indiana South territory who heated their homes with natural gas last year saved up to $790 compared to those who heated their homes with propane.
It is important to remember bills will vary by customer depending on the size and age of the home, number of gas appliances, number of people in the household, thermostat settings and levels of insulation.
Customers are encouraged to take advantage of CenterPoint’s array of payment assistance options as well as energy-saving tips and energy efficiency programs to help mitigate the impact on bills.
