Did you know?

Natural gas service charges consist of 3 components

Your gas service consist of 3 types of cost; supply, transportation and distribution costs.

Supply Costs:

• Covers the gas itself, which typically makes up 70-80% of an average customer's bill.
• Are largely determined by the law of supply and demand.
• Fluctuate more than transportation and distribution costs.
• May be passed through to customers on a dollar-for-dollar basis in compliance with Indiana law.

Transportation:

• Covers the charges of transporting gas from wellheads (typically in the Gulf of Mexico, the western United States or Canada) to your local utility via interstate pipelines.
• Are under Federal Energy Regulatory Commission (FERC) jurisdiction.

Distribution:

• Pay for delivery of gas to homes and businesses within your utility's service area.
• Are generally recovered through a utility's base rates.
• Are under IURC regulation because gas utilities have monopolies in their geographic service areas.

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