Citizens Gas Seeks Base Rate Adjustment

INDIANAPOLIS – Citizens Gas announced today that it has filed a general rate petition with the Indiana Utility Regulatory Commission (IURC) seeking about a 4.5 percent increase in revenues for its gas distribution system serving about 265,000 customers in Marion County . The utility estimates the average residential customer's bill would increase approximately $4.50 per month.

Any increase in base rates would not take effect for several months, pending review and approval of the rate petition by the IURC.

The rate adjustment would only apply to the Gas Delivery Charge on a customer's bill. The adjustment would not apply to the Gas Used Charge, which account for three-fourths of the customer's bills. Like all gas companies operating in Indiana, Citizens Gas passes on the cost of natural gas to customer's on a dollar-for-dollar basis.

Citizens Gas requested the rate adjustment to recover ongoing capital investments and inflationary costs.

“Through disciplined efforts to hold down costs, we've been able to minimize base rate increases over the past 17 years. However, continued inflationary costs and capital investments, such as new pipelines, dictate that we adjust rates to recover current costs of providing gas service. As always, we will remain vigilant about holding down costs,” said Carey Lykins, President & CEO of Citizens Gas.

Lykins added that the utility is taking new efforts to hold down costs and help customers conserve energy. “We continue to focus on making effective natural gas purchases. For example, last year we made an advance purchase of $300 million of natural gas at a discount that will save our customers about $24 million over the next 15 years. Also, our investment in the Heartland Pipeline in Central Indiana is saving our customers more than $3 million annually by accessing more affordable gas supplies from the western U.S. and Canada,” Lykins explained.

Last year, the utility implemented a new rate structure that includes an Energy Efficiency Rate Adjustment, which funds new programs that help customers conserve energy. “Our new rate structure allows us to be much more aggressive about funding initiatives to help customers save energy. Last year, we provided about $400,000 to fund a weatherization program that helps selected low-income customers lower their gas bills by nearly 40 percent. This fall we plan to offer various rebates to customers who are purchasing new high efficiency natural gas equipment,” Lykins said.

Citizens Gas also continues to fund financial assistance programs that help thousands of low-income customers pay their bills. “During the current winter heating season, Citizens Gas will have directly funded more than $2 million in financial assistance to nearly 18,000 customers in need. Operating as a not-for-profit Public Charitable Trust, Citizens is focused on making its service affordable to all customers and helping customers in need,” Lykins said.

More information about the base rate petition will be provided to customers via bill inserts, the company web site at www.citizengas.com, and at public hearings to be scheduled by the IURC.

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.

###

back to 2008 News Releases