Unlike San Diego consumers for whom skyrocketing utility billscame as a hugely unpleasant surprise, natural gas customers inIndiana have been warned in advance to expect to expect much higherbills this winter. The message to Indiana consumers last week wassimilar to those being broadcast all across the country bygovernment and utility officials anxious to moderate the intensepublic reaction manifest in California.

This winter the heat will be on natural gas, and the IndianaUtility Regulatory Commission turned out the troops for a naturalgas forum to warn and explain that natural gas bills during thepeak winter months could be 50% to 60% higher than last year.

Indiana utilities, including representatives of Northern IndianaPublic Service Co. (NIPSCO), a subsidiary of NiSource Inc., and theAmerican Gas Association, said they were working now to get theword out and help consumers and businesses prepare for what theirwinter heating bills may look like.

“While early winter weather and other factors can still affectthe actual gas prices we see this winter, we are informingcustomers to plan on increases of 50% to 60% in their natural gasbills in December 2000, and January and February 2001 when comparedto the same months last heating season,” said Jeffrey Yundt,NiSource Inc.’s executive vice president. “This comparison assumesnormal winter temperatures this heating season versus last season’smilder than normal winter.”

Yundt said that a combination of decreased production during1997 and 1998, and an increased demand by business and industrybecause of the strong economy has “created an imbalance” in themarket. “While new production in response to higher gas prices hastaken place, it can take six to 18 months for these new supplies toreach the market and have an impact on prices.”

Even if prices are higher, NIPSCO, the largest natural gasdistributor in Indiana and second largest electric distributioncompany, does not expect to have supply problems. It now has about700,000 natural gas customers and 416,000 electricity customers.With access to eight interstate pipelines and up to 100 suppliers,it also has a new contract with the Vector pipeline, which willdeliver Canadian gas later this year. It also has “significantstorage facilities,” said Yundt and a “distribution system to meetthe demands of our customers.”

Carolyn Davis, Houston

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