Natural-gas costs decrease for October
10/05/2007, 10:47 am

The Northern Indiana Public Service Company (NIPSCO) announced Thursday that natural-gas costs for October decreased compared to last month, mainly due to a decrease in wholesale natural-gas prices.

NIPSCO residential customers will see a decrease in natural-gas costs of 7.4 percent in October compared to September. The Indiana Utility Regulatory Commission (IURC) approved the adjustment, subject to refund. A typical NIPSCO residential customer using 100 therms of natural gas should expect a decrease of approximately $8.24 from September’s statement in their October billing, although total bill amounts will vary as a result of actual consumption.

This is why I do not lock in rates. By the way, which months do you think have the highest gas use?

This is why I do not lock in rates. By the way, which months do you think have the highest gas use?

This may actually vary by customer...depending on whether or not you use a fireplace or other heat sources.
You can check your previous NIPSCO bills online through their website. It's actually a really nice feature.

February, with Jan about 85% of Feb.

NIPSCO gas bills spike again
BY KEITH BENMAN
kbenman@nwitimes.com
219.933.3326 | Wednesday, July 02, 2008 | 20 comment(s)

The price NIPSCO charges residential customers for natural gas will go up 14.8 percent this month, following a nationwide spike in natural gas prices.

It is the fourth consecutive month NIPSCO's fee has increased by double digits.

Last week, the U.S. Energy Information Agency announced natural gas prices nationwide had broken historical records, surpassing even those in the wake of Hurricane Katrina in 2005.

Mike Watson, vice president of energy supply services for NiSource, the parent company of NIPSCO, told state regulators last week that natural gas has "piggybacked" on the precipitous rise in crude oil prices and he doesn't foresee a decline before next spring.

The U.S. Energy Information Agency is predicting this winter's natural gas prices will be a whopping 52 percent higher than last winter's, when prices averaged $7.17 per thousand cubic feet.

A weekly natural gas update from the agency last week pinned much of the blame on increased investments in commodities by speculators and others.

The report noted since the beginning of the year the price of natural gas has increased 63 percent at a key transmission hub.

Such utilities as NIPSCO pass increases in wholesale prices along to customers through a monthly cost adjustment approved by state regulators.

A typical NIPSCO customer using 50 therms of natural gas this month will see an increase of $14.42 in the NIPSCO bill. Actual increases for individual customers will depend on use.

The U.S. Energy Information Agency is predicting this winter's natural gas prices will be a whopping 52 percent higher than last winter's, when prices averaged $7.17 per thousand cubic feet.

OMFG.

For someone who works in futures trading, I believe that might be low...

So you're saying natural gas prices are going to go up by more than 50% in a year?

Now I seem to recall natural gas isn't a commodity that gets shipped overseas too much -- tankers for moving it are not at all common, the stuff doesn't give a good return for transportation cost, whatever -- my point being that natural gas is for the most part domesticalloy produced and domestically consumed.

So, what's happened? Has supply dropped off, driving prices higher? Has (domestic) demand spiked, driving prices higher? Is natural gas being used in some applications where oil was being used before, driving prices higher?

Or is this another "Enron loophole" event? Any chance that there are going to be natural gas shortages as there were brownouts and rolling blackouts in California when Ken Lay and Skilling et al were screwing everyone out there?

The futures prices are up more than 50% over last year IIRC.

Supply all comes from crude, and demand hasn't waned at all.

The futures prices are up more than 50% over last year IIRC.

Supply all comes from crude, and demand hasn't waned at all.

Oaky...I'm going to show my lack of knowledge on the production of natural gas...but it comes form crude oil?

Never mind...I found an educational link.

Natural Gas Prices Going Up
Consumers should expect dramatically higher natural gas prices this winter. While it is too early for Indiana natural gas utilities to predict the exact impact on heating bills, the trend in the competitive national market is cause for serious concern. National wholesale natural gas prices are very close to the all-time records set in the aftermath of Hurricanes Katrina and Rita in 2005.

In addition, current NYMEX futures costs are substantially higher than previous records for July - the time most gas utilities throughout the nation are filling winter storage supplies.

Useful tips at www.IN.gov/OUCC and energy audit tools on various utility Web sites can help consumers reduce consumption and better manage their bills. Natural gas and electric utilities offer budget billing options that can provide consumers with greater predictability when planning.

I encourage consumers to keep the communication lines open with their utilities, especially if facing a financial hardship. If a particular bill cannot be paid in full and on time, it is crucial that the consumer contact the utility immediately to make payment arrangements to ensure costs are managed during the heating season.

A. David Stippler

Indiana Utility Consumer Counselor

August 04. 2008 1:36PM
NIPSCO to cut natural gas costs for August
Tribune Staff Report

MERRILLVILLE, Ind. — The Northern Indiana Public Service Co. said natural gas costs for August decreased compared with last month, due mainly to a decrease in wholesale natural gas prices as compared with the previous month.

NIPSCO residential customers will see a decrease in natural gas costs of 12.17 percent when compared with July.

A typical NIPSCO residential customer using 50 therms of natural gas should expect a decrease of about $13.61 from last month’s statement in the August billing, although total bill amounts will vary as a result of actual consumption.

So do you think that now might be a good time to sign up for their price protection products/services?

I am always afraid in getting locked into a rate and then have the rates go down (though I don't know that would be the case here). I will be taking steps to button up the house in order to use less gas rather than try to lock in a lower rate.

I have that same fear. But, isn't there a product where you pay a fee for the promise that you won't be charged more than a certain amount per therm? I have to wonder if it's really worth the extra fee.

I have had quite a few folks knocking on the door in the past few weeks offering some kind of service that one could sign up for to lock in gas rates. They claim that they are "not here to sell anything". I never allowed them to stay long enough to hear the offer ... I'm just that skeptical that way ....

As far as a service or product for fee .... I'm really not usre.

I have had quite a few folks knocking on the door in the past few weeks offering some kind of service that one could sign up for to lock in gas rates. They claim that they are "not here to sell anything". I never allowed them to stay long enough to hear the offer ... I'm just that skeptical that way ....

As far as a service or product for fee .... I'm really not usre.

I have had quite a few folks knocking on the door in the past few weeks offering some kind of service that one could sign up for to lock in gas rates. They claim that they are "not here to sell anything". I never allowed them to stay long enough to hear the offer ... I'm just that skeptical that way ....

As far as a service or product for fee .... I'm really not usre.

This option guarantees your Gas Commodity charge will not exceed a pre-set amount for each therm you use for one full year, regardless of how high market prices rise. Each month, your Commodity charge will reflect either your Capped Price or the market price - whichever is lower. Your Commodity charge may fluctuate below the cap, but you'll be secure knowing it will never exceed the cap level you signed up for. Your Gas Commodity charge does not include your Gas Delivery charge, or other Gas Supply charges such as Interstate Transportation and Storage charges - these are shown separately on your bill.

There is a service fee with this option

Example Calculations below show how the PPS Capped Price Option works:

Capped Price Option - Example: Capped Price = $1.20/therm;
Residential Capped Price Service Fee = $9.99
Commercial Capped Price Service Fee = $0.12/therm

Month A: Current GCA Price = $1.30/therm

Your Capped Price Commodity Charge would be used to calculate your gas commodity charge. Assuming you use 100 therms of gas, your Commodity charge would be:

(100 therms x $1.20) = $120.00

Month B: Current GCA Price = $1.00/therm

The current GCA Price would be used to calculate your Commodity charges. Assuming you use 100 therms of gas, your Commodity charge would be:

(100 therms x $1.00) = $100.00

Your additional PPS Capped Monthly Service Fee would be a fixed charge of $9.99, if you are a residential customer.

Your additional PPS Capped Monthly Service Fee would be calculated as follows, if you are a commercial customer:

(100 therms x $0.12) = $12.00



Remember – Your Gas Delivery and other Gas Supply charges will still be billed separately, whether or not you choose PPS. The Delivery portion of your bill experiences very little fluctuation on a per therm basis. The Interstate Transportation and Storage charges are reviewed and updated on a regular basis. The values used in the Example Calculations above are for demonstration purposes only, and do not reflect current PPS Capped option pricing and fees.

NIPSCO seeks 15% rate hike

Associated Press

MERRILLVILLE, Ind. (AP) - Northern Indiana Public Service Co. is seeking a pair of rate hikes that could boost residential utility bills nearly 15 percent by 2010.

Representatives of the Merrillville-based utility told the Indiana Utility Regulatory Commission on Friday that the rate increases are needed to cover increased operating and maintenance costs, and to bring the Sugar Creek generating facility in Terre Haute on line.

Hammond Mayor Tom McDermott Jr., who opposes the increases, said customers deserve a rate cut.

"In a time like this, where people are paying $4 for a gallon of gas and people losing their homes and jobs, it's ridiculous for a company to be asking for any increase," he told the IURC.

Last month, McDermott and LaPorte County attorney Shaw Friedman announced their intent to oppose NIPSCO's proposed rate increase before the IURC.

Hearings on the case will start on Jan. 6 with a public hearing set for sometime early in the year. The IURC will make the final ruling on the rates, and NIPSCO will receive a final decision in late 2009 or early 2010.

NIPSCO spokesman Nick Meyer said the proposed rate structure reflects the cost to serve each customer group. Increases will likely be lower among commercial and industrial customers.

"With residential customers, there's a lot more costs associated with servicing and transmission," Meyer said.

The Citizens Action Coalition will begin combing through NIPSCO's more than 1,000-page petition next week, said Jerry Polk, the lawyer representing the coalition in the rate case.

County to fight NIPSCO increases
Commissioners instead want a rate reduction.

Craig Davison
For The News-Dispatch

LA PORTE - The La Porte County Board of Commissioners plan to intervene in a NIPSCO desire to raise electric rates.

The new rate would increase the cost of monthly utility bills for the average residential customer by 15.5 percent.

Commissioners President Bill Hager, D-Michigan City, said county attorneys have successfully fought the electric company on rate and service in the past.

"Let me assure residents we are committed to fighting this tooth-and-nail," Hager said.

NIPSCO filed its case with the Indiana Utility Regulatory Commission Aug. 29. This is NIPSCO's first base rate request in 20 years.

The rate increase takes place in two steps.

The first step, if approved by the IURC, may go into effect in late 2009 or early 2010, and would include a 2.7 percent base rate increase to cover operating and maintenance costs. The second step, which would not go into effect until mid-2010, would include an additional 9 percent increase for the acquisition of the Sugar Creek Generating Station.

For the average residential customer, the first step would increase monthly bills by $7.24. The second step would increase average monthly rates by another $5.90, for a total possible increase of $13.14 a month.

The second step would not begin until about June of 2010 because the Sugar Creek Generating Station, purchased by NIPSCO earlier this year, is under contract to provide power outside of NIPSCO service area until that time, said Nick Meyer, manager of NIPSCO Communications. The company can't charge customers for service they aren't receiving, he said.

"For the sake of businesses and residents in La Porte County, we will go to the mat to force a rate reduction from NIPSCO," he said.

The trend is up, that is for sure.

dont sign up with any supplier ,just ride out the open market which is where NIPSCO obtains your gas supply from.

i wouldnt lock in any lower with any supplier more than a buck and make sure there is no cancellation fee.