Citizens Gas Projects Lower December Bills

INDIANAPOLIS – Citizens Gas projects that the typical residential heating bill for December (received in January) will be about $56 less than December 2008. Assuming normal weather, the typical residential heating bill for December will be about $147, compared to about $203 in December 2008.

The projections are part of the utility’s monthly Gas Cost Adjustment (GCA) filing with the Indiana Utility Regulatory Commission (IURC). Citizens Gas makes the filings to account for changes in the price of gas it purchases for its customers. The cost of natural gas normally makes up about three-fourths of a customer’s bill with the remaining fourth being delivery costs. Customers pay exactly what Citizens pays for the gas delivered to them.

Citizens expects gas bills to be 20-27 percent lower over the November to March heating season because of sharply lower natural gas costs compared to a year ago. In 2008, natural gas prices spiked to record levels due to strong consumer demand for this clean-burning, high performing fuel and investors buying natural gas and other commodities as a hedge against the falling value of the U.S. dollar. Since 2008, the worldwide economic recession has driven down consumer and investor demand for natural gas resulting in significantly lower prices.

Customers falling behind on their bill are urged to call Citizens Gas at 924-3311. The company works with customers to establish flexible payment arrangements to help them catch up on past due bills. Citizens also encourages customers to enroll in Budget Billing, which splits winter heating costs into 12 equal monthly payments. Customers can enroll in Budget Billing by paying the Budget amount listed on their bill.

To help minimize the impact of sudden changes in wholesale natural gas prices, Citizens Gas utilizes a hedging strategy to purchase most of its gas supply during periods of low demand. Citizens Gas also stores gas in underground storage fields during the summer for use during the winter.

Average Residential Heating Bill Comparisons Projections Assume Normal Weather

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