INDIANAPOLIS – Citizens Gas advised today that the typical Marion County residential customer could expect to pay an average of about $69 less for natural gas service over the November through March billing period compared to the same period a year ago. This represents an 8 percent decrease from last winter.

Citizens Gas projects the typical customer will use 728 therms of natural gas from November through March for a total bill of about $790. This compares to about $859 the typical customer would have spent last year for 728 therms.

The decrease is due to lower wholesale natural gas prices from national producers and marketers.

Citizens Gas passes on the cost of natural gas to customers on a dollar-for-dollar basis. Gas costs will account for about three-fourths of a customer's winter heating bill, with the remaining fourth being delivery and service charges.

Wholesale natural gas prices have fallen steadily this year after a warm winter and the return of natural gas production in the Gulf of Mexico , which was interrupted last year at this time by Hurricanes Katrina and Rita.

“It is certainly great news for our customers that heating bills should be going down. However, we could still have a cold winter, so we again advise customers to take steps to conserve energy. We also strongly urge all customers to ensure they have working smoke and carbon monoxide detectors in all levels of their home and to be very careful using space heaters,” said Carey Lykins, President and CEO of Citizens Gas.

Recommended bill management and energy conservation tips include:

• Signing up for Budget Billing, which spreads the cost of winter heating into 12 equal monthly payments.
• Turning down your thermostat at night or when you aren't home.
• Installing additional insulation.
• Caulking around windows and doors.
• Having your furnace serviced by a licensed technician to ensure safety and efficiency.
• Using the utility's online energy conservation tools at www.citizensgas.com. The Citizens Home Energy Advisor provides a free home energy audit, and the Citizens Bill Analyzer helps customers understand how they are using energy.

Although the utility expects lower heating bills this winter, it is again prepared to ensure substantial energy assistance to customers in need. The utility has a petition pending with the Indiana Utility Regulatory Commission seeking renewal of its Universal Service Program (USP), which during the past two winters provided 9-24 percent bill discounts to eligible low-income customers. Last year, Citizens Gas helped ensure about 24,000 customers received more than $7 million in energy assistance, including about $2.5 million from the USP.

The utility urges customers who are falling behind on their bill to call 924-3311. Citizens Gas can direct customers to various energy assistance sources, provide assistance through its Warm Heart Warm Home Foundation, and set up flexible payment arrangements, which can allow customers to catch up on past due bills.

Citizens Gas minimizes spikes in wholesale gas prices by purchasing gas during periods of low demand when prices are typically lower. Citizens Gas also stores gas during the summer for use during the winter. While this strategy can only minimize price spikes, Citizens Gas heating bills are among the lowest in the State of Indiana , according to figures compiled by the IURC.

The utility also will reduce gas costs through its investment in the Heartland Gas Pipeline, which starting Dec. 1 will provide the region with direct access to affordable new gas supplies from the western U.S. and Canada. The 25-mile pipeline in central Indiana is expected to save Citizens Gas customers as much as $6 million a year in lower gas costs.

Monthly Projections Assuming Normal Weather

*These estimates may change significantly due to changes in weather and wholesale gas prices.

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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