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Indiana Gas Assistance Programs Extended

As of December 1, thousands of low-income families in Indiana are benefiting from reductions in their heating bills due to the extension of natural gas Universal Service Programs (USP) operated by Citizens Gas and Vectren Energy Delivery and of the Winter Warmth Program operated by NIPSCO.

The three utilities have operated their programs since the winter of 2004-05.  Last month the Indiana Utility Regulatory Commission extended the three programs through May of 2009. The USP will provide an annual total of about $2.5 million in assistance to Citizens Gas customers and about $5 million in assistance to Vectren customers.  NIPSCO’s program has a budget of about $4.5 million.

 Eligible customers who have applied for LIHEAP through Indiana’s community action agencies are automatically enrolled in the USP and receive bill reductions in addition to LIHEAP benefits.  For Citizens’ customers, monthly bill reductions range from 10 percent to 25 percent of the total bill, not including LIHEAP benefits. For qualifying Vectren customers, monthly bill reductions range from 15 to 32 percent of the total bill, not including EAP benefits. Approximately 17,000 Citizens customers and about 23,000 Vectren customers are expected to receive USP benefits. The USP also will provide crisis assistance to those with incomes up to 200 percent of federal poverty guidelines (FPG).
 
Under NIPSCO’s Winter Warmth program, participants can receive up to $450 annually and eligibility has been expanded to those with incomes up to 200 percent of FPG, in addition to those who have a financial hardship as determined by the administering agency.  Since its inception, Winter Warmth has provided nearly $14.5 million in bill and deposit assistance to 35,216 customers.

Evaluations conducted of the three natural gas programs by Fisher, Sheehan and Colton (FSC) conclude that they have been effective in reducing shutoffs as a result of nonpayment of bills.

For more information, see FSC's newsletter, Law and Economic Insights, July/August 2007.

Source: IURC, Indiana newspapers

Page Last Updated: January 27, 2010