The Northern Indiana Public Service Company has announced that natural gas costs for May will increase by 14.7 percent.

According to a statement released today, typical residential customers who use 50 therms of natural gas should expect an increase of approximately $10.25 cents in their May billing statements, “although total bill amounts will vary as a result of actual consumption.”

May’s gas cost adjustment was approved subject to refund by the Indiana Utility Regulatory Commission.

NIPSCO attributed the increase to a rise in wholesale natural gas prices.

The gas cost adjustment is an allowed monthly adjustment to the gas supply portion of NIPSCO’s natural gas service rates. The adjustment, which must be approved by the IURC, reflects the fluctuations in the price which NIPSCO pays in the marketplace for natural gas. “The company passes on the costs of the natural gas directly to customers without any markup under its traditional, regulated GCA service option,” the statement said.

Aside from the gas supply charge, the other components of NIPSCO’s monthly gas statements include service costs for gas delivery and state and local taxes. These service costs, which the IURC also regulates, vary with monthly gas use.

For natural gas customers who want consistent monthly payments, NIPSCO’s BudgetPlan allows customers to spread gas costs over an entire year, and the DependaBill program provides a fixed monthly bill with no annual true-up. NIPSCO’s Price Protection Service allows customers to fix or cap their per unit cost of natural gas. And the NIPSCO Choice program gives customers an opportunity to choose an alternative natural gas supplier.

Helpful consumer information on natural gas prices and managing utility bills is also available from the Indiana Office of Utility Consumer Counselor. Call toll free at (888) 441-2494 or visit its website at www.in.gov/oucc

 The IURC may be contacted toll free at (800) 851-4268 or visit its website at www.in.gov/iurc.

Posted 5/2/2008