Here's why your CenterPoint natural gas bill will double this winter, and how to get help

Mark Wilson
Evansville Courier & Press

EVANSVILLE, Ind. — If you live in Southwestern Indiana and rely on natural gas to heat your home, get ready for some wintertime sticker shock.

CenterPoint Energy informed its customers this week that they can expect to pay nearly double what they did last year. And that's assuming normal winter weather, the utility said.

CenterPoint customers will shell out an average of $146 a month for natural gas from November through March. That is nearly 95 percent more than the same five-month period last winter when the average natural gas bill was $75 a month, according to the utility. 

More:Customers voice cost, climate concerns at CenterPoint Energy rate hike hearing

Although the expected increase is largely due to rising natural gas prices, CenterPoint's forecast includes a separate increase in its natural gas distribution and service charges that began Oct. 7. That increase already is adding about $12 a month more to average home customer bills.

It was approved by the Indiana Utility Regulatory Commission for CenterPoint to recover the remaining 20 percent of its investment in a seven-year modernization of its natural gas network to meet federal pipeline safety rules.

While the state allows utilities such as CenterPoint to charge natural gas customers for distribution and service, utilities do not profit from the purchase and sale of gas. The expense is passed directly to customers with no price mark-ups.

The amount gas bills are expected to increase this winter is an average and can vary according to factors such as size and age of homes, insulation, thermostat settings, number of gas appliances and how many people are in a home.

CenterPoint urged customers to start now preparing for managing their winter energy bills, in a written statement, and said there are a number of tools available to help customers.

These include a budget billing plan, available on www.centerpointenergy.com, in which a customer's costs for a year of gas service can be spread in equal monthly bill amounts the year. This reduces the need to pay the full amount in the winter by spreading some of the higher bill charges into the warmer months. Each summer the amount is adjusted for actual costs and customers' credit or amount due is rolled into the next budget bill payment for the next 12-month period.

More:Henderson gas customers should expect higher rates to heat their homes this winter

The Community Action Program of Evansville offers an Energy Assistance Program. Details can be found at www.capeevansville.org/ or by calling 1-800-872-0371. It provides state and federal utility assistance money for customers with incomes that fall within 60 percent of the state median income. CAPE will start accepting applications for the current heating season on Nov. 1.

Individuals who qualify for the Energy Assistance Program and are eligible are automatically enrolled in the Universal Service Program that provides additional gas bill reductions December through May. It is a collaborative effort by CenterPoint and others and provides about $1.5 million in assistance each year to roughly 18,000 CenterPoint Energy customers in Indiana to help low-income households get reconnected and/or maintain heat throughout the winter.

Share the Warmth, a nonprofit organization, assists income-eligible customers with home weatherization. Additional information is available at www.sharethewarmthinc.com.

CenterPoint also offers energy efficiency tips and energy-saving tools on its website at www.centerpointenergy.com.

Global demand and lower production, including an increased demand from power plants, and infrastructure disruptions from hurricanes are among the contributing factors to the surging natural gas prices.

The city of Henderson, Ky., across the Ohio River from Evansville, recently notified Henderson Municipal Gas customers to expect increases in the natural gas portion of their utility bills this winter.

Henderson officials offered ways people can conserve natural gas and reduce home heating costs, including:

  • Make sure window and door openings are sealed well to prevent cold air leaking in
  • Add insulation
  • Add storm windows which can reduce heat loss by up to 20 percent
  • Cover bare floors with carpet
  • Insulate plumbing and water heaters with proper insulating materials
  • Have your furnace/HVAC inspected and change the filter regularly
  • Clean the lint trap of your clothes dryer
  • Use cold water to wash clothes instead of hot
  • Lower your thermostat to 68 degrees
  • Install a programmable thermostat
  • Turn down your water heater temperature to no higher than 120 degrees
  • Cook using smaller pans and use the microwave instead of your stove or range whenever possible

Mark Wilson covers education and environment at the Courier & Press.