Modestly Higher Natural Gas Prices, Return To Normal Weather May Increase Winter Heating Costs

Modestly Higher Natural Gas Prices, Return To Normal Weather May Increase Winter Heating Costs

Vectren Energy Delivery of Indiana – South (Vectren) announced that customers may see higher natural gas bills than last winter, assuming normal winter weather year-over-year. Natural gas prices continue to be low and stable, yet higher than last year. As such, bills could be about $12 per month higher.

This year, based upon expected natural gas commodity costs and normal winter weather, customers can expect to pay around $395 over the five-month heating season of November through March based on the average household consumption of approximately 550 therms. By comparison, last year’s average bill amount for the 5-month period, had weather been normal, would have been around $330. However, last winter was more than 20 percent warmer than normal, which kept bills lower than projections.

“Recall last winter was extremely mild so a likely return to more normal weather, coupled with slightly higher gas prices, may lead to higher bills this heating season,” said Brad Ellsworth, president of Vectren Energy Delivery of Indiana-South. “The good news is that gas bills remain very affordable compared to historic highs we experienced prior to 2010. In the early 2000s, for example, customers saw five-month bill totals around $700 to $750.”

Bills will vary by customer depending on the size and age of the home, number of gas appliances, number in the household, thermostat settings and levels of insulation. Although the market points to continued low, stable natural gas pricing for years to come, customers should still implement energy efficiency measures and find ways to use less natural gas to lower bills even further.

Vectren has in place a number of tools to help customers manage their energy bills.

• Energy efficiency resources– Vectren offers appliance rebates and energy-saving tools to help customers lower their natural gas bills. All Indiana residential and small commercial natural gas customers are eligible. Visit Vectren.com/energyefficiency or call 1-866-240-8476 for a list of rebates, qualifying appliances and energy efficiency tips.

• Budget Bill: Under this billing plan, a customer’s estimated costs for a year of gas service are spread out in equal monthly bill amounts for the year. This leveling of monthly bill amounts reduces the need to pay the full amount in the winter and spreads some of those higher bill charges into the non-heating months. Amounts are adjusted each summer for actual costs, and the customer’s credit or amount due rolls into the next Budget Bill payment for the next 12-month period.  A mid-winter recalculation may occur for some customers if gas costs significantly change during the heating season. Customers can enroll for free at www.vectren.comor by calling 1-800-227-1376.

 

• Energy Assistance Program (EAP): State and federal utility assistance dollars are available for income-eligible customers. Those that fall within 150 percent of federal poverty guidelines should visit their local community action agency to sign up for the EAP. To apply for the EAP, customers should call 1-800-872-0371 to locate their nearest community action agency.Community action agencies will begin taking applications for all energy assistance programs on Nov. 1.

• Universal Service Program (USP):All eligible natural gas heating customers who apply and qualify for EAP will automatically be enrolled in the Universal Service Program (USP), which provides additional gas bill reductions that range from 15 to 32 percent of the total bill received (not including EAP benefits) in the months of December through May. The USP, which has been in place since 2005 is the result of a collaborative effort by Vectren, Citizens Energy Group, the Indiana Office of Utility Consumer Counselor, Citizens Action Coalition and a group representing industrial customers. The program provides about $5 million in assistance each year to roughly 25,000 Vectren Indiana customers, including crisis assistance dollars, which target qualified low-income and working-poor households that need additional help to get reconnected and/or maintain heat throughout the upcoming winter.

• Share the Warmth: Those wanting to help the less fortunate with their energy bills can contribute to Share the Warmth, a nonprofit organization that assists income-eligible customers with home weatherization services. Each year, Vectren matches all public donations, up to an annual total of $200,000. Donations may be tax-deductible and can be sent to Share the Warmth, P.O. Box 931, Evansville, IN 47706-0931 or visit www.sharethewarmthinc.com. Customers who pay their bills at Vectren.com may donate through a bill round-up feature. In 2015, over 100,000 customers used this feature to direct donations to Share the Warmth.  This option contributed over $86,000, which was matched by Vectren.

“Customers are encouraged to reach out to us before they get behind on payments if they are in need of financial assistance, as there are several options to help customers manage costs” said Ellsworth. “Furthermore, customers should contact their local community action agency today and apply for financial and/or home weatherization assistance.”

Natural gas is a commodity bought and sold in a national deregulated market and prices fluctuate daily due to supply and demand pressures. Vectren 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 Vectren bill as “Gas Cost Charge.” Vectren utilities are not allowed to mark up nor profit from the purchase and sale of natural gas. Only gas costs actually incurred and approved by the Indiana Utility Regulatory Commission are recovered from customers.

Vectren South delivers natural gas to approximately 110,000 customers in Daviess, Gibson, Knox, Martin, Pike, Posey, Spencer, Vanderburgh and Warrick counties.

About Vectren

Vectren Corporation (NYSE: VVC) is an energy holding company headquartered in Evansville, Ind. Vectren’s energy delivery subsidiaries provide gas and/or electricity to more than 1 million customers in adjoining service territories that cover nearly two-thirds of Indiana and about 20 percent of Ohio, primarily in the west-central area. Vectren’s nonutility subsidiaries and affiliates currently offer energy-related products and services to customers throughout the U.S. These include infrastructure services and energy services. To learn more about Vectren, visit www.vectren.com.