About 46,000 Low-Income Families Will Receive Gas Bill Discounts
INDIANAPOLIS - The Indiana Utility Regulatory Commission (IURC) has approved an extension to the Universal Service Program (USP) to help reduce bills and promote conservation to about 46,000 low-income natural gas customers of Vectren Energy Delivery and Citizens Gas.
Eligible customers who have applied for the state's Energy Assistance Program (EAP) through local Community Action Agencies will automatically be enrolled in the USP and will receive bill reductions in addition to EAP assistance. Monthly bill reductions will range from 9 percent to 32 percent of the total bill (not including EAP benefits), depending on the consumer's income level and utility provider. For example, a family of four with an annual income of $23,000 would see a total monthly bill reduction of approximately 40 percent for Citizens Gas and 50 percent for Vectren.
The USP was established in January 2005 through a collaborative agreement among the two utilities, the Indiana Office of Utility Consumer Counselor (OUCC), the Citizens Action Coalition of Indiana (CAC) and a group of manufacturing firms and health care providers. For a consumer to qualify for USP assistance, the following criteria must be met:
- The customer must enroll in and qualify for assistance from EAP.
- The customer’s account must be designated for residential gas heating.
- The customer must reside at the service address.
- There must be only one account in the customer’s name.
Approximately 29,000 Vectren customers and approximately 17,000 Citizens customers are expected to continue participation in the five-month program extension. After tracking the efficiency of the program, the IURC and the parties to the agreement will review the program to determine if further modifications are necessary.
"The USP program helped approximately 29,000 Vectren customers last heating season and we are pleased the IURC extended the program through May 2007," said Vectren Vice President of Marketing and Customer Service Doug Karl. "The USP will not only encourage low-income customers to conserve energy, but also provide assistance in the form of an affordable method to pay their bill in addition to ensuring continued gas service during the coldest months of the year."
Vectren USP funding will be funded from the utility’s “Share the Warmth” assistance fund. During this extension Vectren will contribute more than $1.4 million that is designated toward offsetting the cost of the USP. Vectren assesses a small monthly per-unit charge to all of its Indiana customers. This charge, for an average residential customer, is not expected to exceed $0.59 per month.
"Making our gas service more affordable has always been the foundation of the not-for-profit Public Charitable Trust under which Citizens Gas operates. With energy costs continuing to rise, we believe the Universal Service Program plays a critical role in ensuring low-income customers have a safe, warm winter heating season,” said Andy Proctor, Vice President of Customer and Information Services for Citizens Gas.
Funding for the Citizens Gas USP will be provided through the utility’s annual Customer Benefit Distribution (CBD) and a monthly charge to all customers that averages $0.25 per month. The CBD lowers the bills of all Citizens Gas customers and is funded from unregulated operations of the utility. The CBD was established through a previous agreement among Citizens, the Indiana Office of Utility Consumer Counselor and several other parties.
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 one million customers in adjoining service territories that cover nearly two-thirds of Indiana and west central Ohio. Vectren's nonutility subsidiaries and affiliates currently offer energy- related products and services to customers throughout the Midwest and Southeast. These include gas marketing and related services; coal production and sales; and energy infrastructure services. To learn more about Vectren, visit http://www.vectren.com .
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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