Vectren Corporation expects winter heating costs to decrease

Vectren Corporation, Bloomington’s natural gas provider and the largest provider in southern Indiana, recently announced customers could expect to see heating costs 25 to 30 percent lower than last season.

In an average winter heating season from November to March, residential customers pay roughly $800. But Vectren said it’s expecting bills to be closer to a $550 to $600 range.

The Evansville-based company attributed the anticipated drop to a down economy, an increased gas supply and an unseasonably cool summer.

Because natural gas is traded on a deregulated market, prices fluctuate daily based on anything ranging from Wall Street to weather. However, Vectren has already purchased 75 percent of its needed gas supply for the upcoming heating season, stabilizing any potential bill fluctuation, spokesperson Chase Kelley said.

Still, Vectren is urging customers to invest in energy-saving appliances and warning that low bills like those this winter will likely not be seen next heating season.

Lower costs will also help save funds at IU, which services more than a quarter of its 15 million square feet of buildings with natural gas.

Despite the expected decrease in natural gas prices, many Hoosiers will still be unable to pay for the utility without assistance.

The federal Low Income Home Energy Assistance Program provides funds to help households across the nation that are within 150 percent of the poverty line.

Kelley said that approximately 34,000 of Vectren’s 568,000 customers received federal assistance through the LIHEAP last year.

LIHEAP, which was appropriated $4.5 billion nationwide for 2009, works on a first come, first serve basis in some states, including Indiana, which can sometimes lead to a rush to apply for assistance.

Though natural gas prices are expected to hit their lowest figures in nearly a decade, LIHEAP shouldn’t see that big of an impact in the way it’s operated, said Doug Wilson, director of communication for South Central Community Action Program,
LIHEAP’s local administrator.

The South Central Community Action Program served 5,209 customers last winter, a 10 percent increase from the previous winter and is expecting another 10 percent increase this winter, Wilson said.

The SCCAP has already served 1,208 customers since the program went into effect on Oct. 1.

Though lower natural gas prices may not allow the LIHEAP to help those in financial need directly, those involved are still optimistic lower prices will help immensely.

“Any decrease in heating cost is a plus. So we’re glad about that,” said Todd Lare, executive director of the SCCAP. “It just means that families may be able to stretch their dollars further this winter.”