Natural gas firms warning of high bills

indystar

October 30, 2008 by indystar | Staff

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INDIANAPOLIS — Natural gas utility companies are stepping up efforts to warn customers about higher heating bills this winter and help them find ways to cut costs.

Vectren Corp. is running a billboard campaign urging customers to “avoid bad bill reaction” by turning down the thermostat and weatherizing their homes. The Northern Indiana Public Service Co. is promoting its EnergyHarvest program, which offers rebates to customers who buy energy-efficient appliances. And Citizens Gas is holding online chat sessions so customers can ask the company’s president questions about heating costs and other issues.

Company officials told the Indiana Utility Regulatory Commission during a meeting today that they wanted to prepare customers for winter bills, which are expected to be between 10 and 20 percent higher than a year ago. High bills could be an especially worrisome problem for families struggling because of the economic downturn.

“The intent of this campaign was to get people’s attention prior to the season — prior to opening the first bill,” said Niel Ellerbrook, Vectren’s chairman and chief executive officer. “Before you get in trouble with the first bill, you can take action to try and mitigate the size of that bill.”

The chat sessions with Carey Lykins, Citizens’ president and CEO, have covered questions about natural gas prices, home efficiency and safety.

“We haven’t tried anything like this before,” Lykins said. “We thought it might be an effective way to get out in front of the issue and allow customers to communicate directly with me.”

The utility companies’ outreach efforts are a way to try and alleviate people’s fears, said Grant Smith, executive director of the Citizens Action Coalition, a consumer group active on utility issues. But he said it would take far greater efforts — such as comprehensive efficiency incentives — to make a big difference.

“What we really need is real action,” he said.

Vectren said its customers’ average gas bills will be about 13 percent higher than last season, or about $768 over five months compared to $680 last season.

NIPSCO predicts that its 712,000 natural gas customers could pay 10 percent to 20 percent more on their home heating bills this winter. The company is telling customers to be prepared to pay $906 from Nov. 1 to March 31, compared to $756 last winter.

Citizens Gas says its Indianapolis-area customers can expect to pay $939 for its average use during five winter months, or $158 more than the $781 they would have spent last season.

State government agencies have a record of nearly $119 million in aid money ready to help low-income residents pay their heating bills this winter.

Aid is available to those earning 150 percent of the federal poverty level, a sliding scale based on the number of people in a household. To qualify, a family of four would have to earn $31,800 or less, while a single person would have to have an income of $15,600 or less.

Utilities say all consumers can act now to reduce high heating costs:

>> Reduce energy use by caulking around windows and doors, adding insulation, and switching to higher-efficiency appliances, which can earn customers rebates from some utilities.

>> Use budget billing, which eliminates the shock of wintertime heating bills by spreading the costs over 12 months and allows consumers to budget and plan with more certainty.

>> Keep open lines of communication with utilities and contact them as soon as possible about problems paying a bill.

Categories: Communities, Metro & State

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indiana utility regulatory commission, northern indiana public, northern indiana public service co, vectren corp, natural gas prices, northern indiana public service, public service co, billboard campaign, economic downturn, worrisome problem, energy efficient appliances, vectren, outreach efforts, grant smith, lykins, chief executive officer, heating bills, action coalition, consumer group, company officials, Metro, Metro & State

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