Citing strong domestic supply, shale production and storage levels, Northern Indiana Public Service Co. said natural gas customers can expect cheaper heating bills this winter.
For the five-month heating season – Nov. 1 to March 31 – NIPSCO’s average residential customer using a total of 623 therms could expect to pay $461. Last winter, the bill was about $500, an 8 percent difference.
The utility on Wednesday said market projections indicate natural gas prices will remain among the lowest in a decade. That means even if this winter is colder than usual, area consumers will still enjoy relatively low heating bills.
“It’s certainly positive news for houses on (tight) budgets and for companies going into the winter months,” NIPSCO spokesman Nick Meyer said.
National Weather Service meteorologist Evan Bentley said Fort Wayne can expect a slightly colder winter than normal.
“The average temperature is 27.4 degrees and average snowfall is 26.3 inches,” he said. “Right now, we don’t anticipate it being extreme.”
Jimmy Staton, CEO of NIPSCO, said that bodes well for all.
“Market prices for natural gas have stabilized because of increased domestic production, onshore shale gas discoveries, and increased storage and transportation capabilities,” he said in a statement. “This stable market outlook will provide a much-needed benefit to homes and businesses across northern Indiana.”
Electric customers aren’t as fortunate.
NIPSCO is seeking approval of a 4.5 percent rate increase for its electricity customers that includes about 41,000 residents in DeKalb, Kosciusko, Noble and Steuben counties. The hike would result in a $3.33-a-month increase.
Also, Indiana Michigan Power has filed a request with the state to bump up residential rates by 22 percent, which would add about $20 on an average monthly bill. A decision on the rate appeal could take up to a year as the state Utility Regulatory Commission goes through its review process.
I&M serves 180,000 customers in northeast Indiana.
Meyer said NIPSCO also expects federal cuts to energy-assistance initiatives, including the utility’s assistance program for low-income residents. Statewide, the effort served 55,000 customers in 2010 and likely will help a similar amount this year.
NIPSCO relies on such groups as Community Action of Northeast Indiana, which serves Allen and five surrounding counties. Typically, at least 10,000 households a year count on CANI’s energy-assistance program.
