In response to continued low, stable natural gas prices, Vectren Energy Delivery of Indiana-North is reducing the monthly Budget Bill amounts by 30 percent for the majority of its 98,000 customers on the program.
Revised Budget Bill amounts should be reflected on Vectren July billing statements.
"Given the continued stability in the market price of natural gas and forecasted winter prices, we are implementing a decrease for the majority of our customers participating in the Budget Bill program," said Brad Ellsworth, president of Vectren Energy Delivery.
"The driving force in this significant decrease is that mild winter weather and natural gas costs that were even lower than what was forecasted last summer led to bill amounts that were lower than expected this past heating season. As such, many customers accumulated a large credit balance throughout the winter, which is helping to reduce Budget Bill amounts for the next 12-month period."
Under the Budget Bill payment plan, a customer's estimated costs for a year of natural gas service are spread out in equal monthly bill amounts for the year. Monthly payments are based on past energy consumption over 12 months for the home, forecasted natural gas costs and normal weather.
Typically, amounts are adjusted annually in the summer for actual costs, and the customer's credit or amount due rolls into the next calculation for the next 12-month period.
"Even though most Budget Bill customers will experience a decrease in payment, they should still focus on ways to use energy wisely through conservation and energy efficiency measures to lower bills even further," Ellsworth said.
"Vectren has a number of resources that can help, including rebates on high-efficiency home and water heating equipment, an online energy audit and low- and no-cost energy efficiency tips."
Some Vectren Budget Bill customers may not see as large of a decrease due to the timing of their enrollment or variances in historical consumption. Residential customers, certain small businesses, small farms, schools and nonprofit organizations in good financial standing with Vectren are eligible for Budget Bill. Customers can enroll for free at www.vectren.com or by calling 1-800-227-1376.
Vectren North serves 570,000 customers in all or a portion of Putnam, Adams, Allen, Bartholomew, Blackford, Boone, Clark, Clay, Clinton, Decatur, Delaware, Fayette, Floyd, Fountain, Grant, Greene, Hamilton, Hancock, Hendricks, Henry, Huntington, Jackson, Jay, Jefferson, Johnson, Lawrence, Madison, Martin, Miami, Monroe, Montgomery, Morgan, Orange, Owen, Parke, Randolph, Rush, Shelby, Tippecanoe, Tipton, Vermillion, Vigo, Wabash, Warren, Wayne, Wells and White counties.