Indiana Utilities Corp Ratesmonthly residential surveys.
Key components in a gas bill include gas costs and base rates.
Natural gas utilities buy gas for their customers in a competitive wholesale market. Indiana law allows utilities to adjust rates periodically to recover changes in those costs, which can go up or down. These costs comprise a significant portion of a residential bill and are recovered through the Gas Cost Adjustment (GCA) process.
- Utilities may recover wholesale gas costs on a dollar-for-dollar basis but may not profit on them.
- Before adjusting rates to reflect the costs, a utility must demonstrate that it has shopped prudently in the competitive market.
- Each GCA filing requires OUCC review and IURC approval.
Indiana Utilities Corporation files gas cost adjustment requests every six months. Its most recently approved GCA (Cause No. 37357 GCA-112) received approval in April 2022. It will affect the May-October 2022 period.
Base rates cover "non-gas" costs for a utility, including operational, maintenance, and capital costs. A natural gas utility is allowed to earn a return on this portion of the bill.
Indiana Utilities Corporation's current base rates were set in February 2019. In its rate case order, the IURC approved a settlement agreement between the OUCC and the utility. It reduced the utility's requested increase from 5.24 percent to 4.29 percent.