Winter relief in the form of lower gas bills

Clark County

Discussion

October 9, 2009

Steps to make sure residents are energy efficient

By BRADEN LAMMERS The News and Tribune Fri Oct 09, 2009, 06:45 PM EDT

Good news for Indiana residents will be sweeping in with the unenviable sleet, snow and ice that also comes along with the winter months.

For the first time since 2001 many residents will see a reduction in their heating bills as a result of lower prices for natural gas.

“[Vectren Energy Delivery of Indiana — an Evansville based company] announced that assuming normal winter weather, customers could see bills that are 25 to 30 percent lower than the previous heating season,” said a Vectren press release.

An increased natural gas supply, lower demand, a mild summer and the economic downturn were cited as contributing factors in lowering the price of the natural gas.

According to Vectren, a typical customer may save $200 to $250 from November through March, compared to last year.

While the price break may be a welcome relief, don’t expect the savings to last long.

“The economy is expected to rebound and natural gas prices are expected to rebound with it,” said Chase Kelley, spokesperson for Vectren. “No one projects gas prices are going to stay the same.”

Lower prices should carry most customers through the winter, regardless of the state of the economy, as many providers have secured most of the product to get them through the season.

For customers operating on an all electrical system, there may not be much of a change from last year.

More stable prices for coal — the main source for producing electricity in the Midwest — will not have customers on all electric systems experiencing the peaks and valleys of those heating their homes with natural gas, Kelley said.

To ensure consistent savings other steps are available.

“Even though bills are forecasted to be lower it doesn’t mean customers should lose sight of implementing energy efficiency measures and finding ways to use less natural gas to lower bills even further,” said Niel Ellerbrook, Vectren CEO.

Help is being offered by Community Action of Southern Indiana to become more energy efficient or to receive assistance paying utility bills.

The group has received $1.3 million in American Reinvestment and Recovery Act — ARRA — funds designed to help low and moderate income homes weatherize in Clark and Floyd counties.

Phil Ellis, administrator of community development for community action recommended people come in and fill out an application for its energy assistance program.

Those not determined eligible for the energy assistance program — which helps low to moderate income families pay their energy bills — may still be eligible to receive weatherization.

Weatherization includes a pre- and post-inspection of the home, possible sealing and replacing broken windows, using high-efficiency light bulbs and sometimes replacing old appliances with new, high-efficiency heaters and furnaces.

Eligibility is determined by a sliding fee scale of the poverty index and help is available for those making under $29,140 for a family of two, $44,100 for a family of four and the scale increases $7,440 for each additional family member, Ellis said.

The community action group plans to begin weatherization construction next month and will complete work on 212 homes by next year, he said.