EVANSVILLE, Ind., Jan. 31 /PRNewswire-FirstCall/ -- Vectren Energy Delivery (Vectren; NYSE: VVC) announced today that February natural gas costs will be approximately 15 percent lower than January. These reductions to Vectren North's gas costs were filed Tuesday with the Indiana Utility Regulatory Commission (IURC).
The new projections are part of the utility's monthly gas cost filing with the IURC. Vectren makes the filings to adjust for changes in the price of natural gas it purchases for its customers. Gas prices often fluctuate rapidly because of changing weather and gas market conditions. The utility passes on the wholesale cost of gas to customers on a dollar-for-dollar basis and is not allowed to profit from these gas costs.
The gas costs for Vectren North have been decreased from $1.208 to $1.019 per therm. Based on 30-year normal weather, a typical customer would be expected to use 150 therms in February for a total bill of $192.19 (including distribution and service charges and taxes), a savings of $28.32.
"Winter is not over and we still have a national energy problem to solve, but the wholesale cost of natural gas is trending down slightly and we are passing those savings along to customers," said Vectren Chairman, President and CEO Niel C. Ellerbrook. "These lower prices, although still high by historical standards, should be welcome news to customers who have been challenged to pay this winter despite warmer weather."
Natural gas prices have moderated due to milder-than-expected weather in January, the continuing restoration of Gulf Coast production after hurricanes Katrina and Rita and the resulting relatively high levels of natural gas in storage nationally.
"We must continue to send the message to our elected representatives that we need to open up additional supplies to help solve this crisis long term. Next winter is shaping up to be similar to this winter's high prices and that is not good for anyone," Ellerbrook said.
Each customer experience will vary according to a number of factors, such as the size of home, age of gas equipment, efficiency of the home and personal comfort decisions. Colder-than-normal weather may result in the return of higher prices and higher consumption, ultimately reducing the savings.
Vectren had previously announced a 12 percent reduction in gas costs in February for its Ohio utility.
About Vectren
Vectren Corporation is an energy and applied technology holding company headquartered in Evansville, Indiana. Vectren's energy delivery subsidiaries provide gas and/or electricity to over one million customers in adjoining service territories that cover nearly two-thirds of Indiana and west central Ohio. Vectren's non-regulated subsidiaries and affiliates currently offer energy-related products and services to customers throughout the Midwest and Southeast. These include gas marketing and related services; coal production and sales; and utility infrastructure services. To learn more about Vectren, visit http://www.vectren.com/ .
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