Citizens Gas Projects Gas Bills for February

INDIANAPOLIS – Citizens Gas projected today that the typical residential heating bill will decline about $25 in February (billed in March) compared to January. The reduction for February is attributable to lower wholesale natural gas costs and lower consumption compared to last month.

Assuming normal weather, the utility projected that the typical residential heating bill for February would be about $190 for 163 therms. In January, the typical bill was about $215 for 176 therms. During February 2005, the average bill would have been about $154 for 163 therms. The increase compared to a year ago is attributable to higher wholesale natural gas costs, which are passed on to customers on a dollar-for-dollar basis.

The projections are part of the utility’s monthly Gas Cost Adjustment (GCA) filing with the IURC. Citizens Gas makes the filings to account for changes in the price of gas it purchases for its customers. Gas prices often fluctuate rapidly because of changing weather and gas market conditions.

Higher natural gas costs this winter compared to a year ago are attributable to higher demand for gas and interruptions in gas supply caused by Hurricanes Katrina and Rita last summer. The halt in production, which has still not been fully restored, has approximately doubled the wholesale price of natural gas.

Low income customers are urged to contact Community Action of Greater Indianapolis at 1-(866) 565-0197 for information about financial aid available from the Indiana Energy Assistance Program (EAP). Customers who become eligible for EAP assistance will automatically receive a 9-24 percent discount on their gas bill through the Citizens Gas Universal Service Program. Citizens Gas also provides energy assistance through its Warm Heart Warm Home Foundation and works with customers to set up flexible payment arrangements to catch up on past due bills. Total energy assistance provided by Citizens Gas this winter will be nearly $6 million.

Customers can minimize the monthly financial impact of cold weather by signing up for Citizens’ Budget Payment Plan. Under the Budget Plan, a customer’s heating cost is spread out into equal monthly payments over a 12-month period. Information about Budget Plan eligibility is available at 924-3311.

The utility urges customers to conserve energy by taking simple steps to weatherize their homes. Customers can better understand their gas usage and conserve energy with two new energy management tools at www.citizensgas.com. The Citizens Bill Analyzer helps customers better understand their energy usage and the Citizens Home Energy Advisor provides a list of energy saving suggestions through a free online energy audit.

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.

While this strategy can only minimize price spikes, Citizens Gas’ rates are among the lowest in the State of Indiana, according to figures compiled by the IURC. Based on rates in effect on January 1, 2006, Citizens Gas has had the fifth lowest average gas rates among the 25 gas companies operating in the state.

Average Residential Heating Bill Comparisons Projections Assume Normal Weather

About Citizens Gas
Citizens Gas & Coke Utility is a Public Charitable Trust providing efficient and reliable energy services to more than 266,000 customers in and around Marion County. The Public Charitable Trust means the utility is managed only for the benefit of customers and the community.

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