Winter heating bills forecasted to increase compared to last year, remain lower than recent peak in 2022

Northern Indiana Public Service Company (NIPSCO) LCC announced today
that natural gas residential customers can expect an increase in their winter heating bills this season
compared to last year. Based on current market projections and assuming normal winter weather, bills
for natural gas residential customers are estimated to be 15 percent higher in contrast to cost at this
same period in 2023, and 17 percent lower compared to the recent peak experienced in 2022.

Each year, NIPSCO and other Indiana energy companies provide a forecast for home heating bills
during the upcoming winter months. Projections are based on market forecasts, supply trends and
storage levels, as well as normal weather forecasts. If temperatures are colder or warmer than normal,
usage amounts and bills could differ.

Over the course of the upcoming five-month winter heating season — Nov. 1 to Mar. 31 — NIPSCO’s average natural gas residential customers using 625 therms could expect to pay approximately $555 total. This compares to $483 during last winter’s heating season, and it represents about a $72 difference (15 percent) or $14.40 per month on average from November to March.

There are two primary components of natural gas bills – the cost of delivering natural gas to customers and the cost of natural gas itself.

A NIPSCO natural gas base rate increase was approved by the Indiana Utility Regulatory Commission
(IURC) this summer, and the first phase went into effect in August 2024 with a second step change to
occur in Q1 2025, no later than March 1, 2025. The change in natural gas base rates relates to the costs associated with delivering natural gas to customers, which comprises a smaller portion of the bill.
NIPSCO’s projected increase in this winter’s gas bill is primarily attributed to the most recent rate
increase approved by the IURC.

For the cost of natural gas itself – which is largely dependent upon market prices – NIPSCO does not
control these costs. The company passes them directly through to customers with no markup and does
not profit on that portion of the bill. Natural gas commodity costs must be reviewed and approved by the
IURC. Natural gas market prices are flat in comparison to last year.

To help ensure customers receive the best price for natural gas, NIPSCO purchases gas in the market
from a variety of supply sources throughout the year. Gas storage is also used to help offset market
price volatility by purchasing gas throughout the summer months and putting that gas into storage for
use during the winter months. Purchasing supplies over time levels out the peaks and valleys of natural
gas prices and provides more price stability for our customers. NIPSCO’s gas distribution system
consists of two on-system storage facilities and connects to seven interstate pipelines providing access
to major North American supply basins.

Managing costs to ensure the delivery of natural gas to homes and businesses without compromising
safety, reliability and integrity is vital, and NIPSCO is improving its systems and implementing
technologies to create long-term efficiencies for the benefit of customers.

Billing and Payment Options

Customers who are experiencing financial difficulties are encouraged to visit nipsco.com/assistance or
call NIPSCO’s Customer Care Center at 1-800-464-7726 as soon as possible to determine what
options might be available for their situation. Some of those solutions include:

• Low Income Home Energy Assistance Program (LIHEAP): LIHEAP support is available to
  households that are at or below 60 percent of the State Median Income (SMI). Customers can
  learn more and find out if they qualify at eap.ihcda.in.gov or call 2-1-1. The online application
  portal opened to the public on Oct. 1, 2024. Paper application will be available to the public on
  Nov. 1. Applications are taken through April 14, 2025, at 5 p.m. EST.
• Customer Assistance for Residential Energy (CARE) Discount Program: In addition to the
  assistance available through LIHEAP, the NIPSCO CARE program is designed to provide
  further bill reductions to LIHEAP-approved customers. Once enrolled in LIHEAP, customers are
  automatically enrolled in the program, and reductions range from 15 to 32 percent, depending
  on the same criteria used by the state in determining the level of assistance.
• Hardship: This program provides energy assistance funds for natural gas customers who fall
  between 151-250 percent of the Federal Poverty Level. Hardship funds are available through
  many of the same local Community Action Agencies where EAP funds are distributed.
• Indiana Emergency Rental Assistance (IERA) Program: IERA provides financial assistance for rent and utility payments for Indiana residents whose income has been negatively impacted by the pandemic. Customers can learn more and find out if they qualify by calling 2-1-1.
• Township Trustees: A limited amount of energy assistance funds is available through local
  Township Trustee offices. NIPSCO customers are encouraged to contact their local Township
  Trustee to see what help may be available.
• Flexible Payment Plans: Payment Agreements: NIPSCO has expanded its payment plan
  agreements to offer its most flexible payment plans to customers that need financial support,
  including three-, six- and 12-month plans. Customers can learn more and enroll
  at NIPSCO.com/PaymentPlans.
• Budget Plan: A free service to all NIPSCO customers to help manage their monthly energy bills
  by spreading out gas costs over an entire year. Learn more at NIPSCO.com/budget.

For more information on billing options and payment assistance, visit NIPSCO.com/assistance.
Customers looking to quickly find information 24 hours a day, seven days a week can use NIPSCO’s
Chat feature located in the bottom right-hand corner of its website (NIPSCO.com) or via the mobile app.
Customers may also contact the NIPSCO Customer Care Center at 1-800-4-NIPSCO Monday-Friday,
7 a.m. to 7 p.m. CT.

Energy- and Money-Saving Programs

Usage makes up the largest portion of the average energy bill. Because of this, NIPSCO offers energy-
efficiency programs to help manage usage and, in turn, bills. A full list of programs, rebates, and tips available to NIPSCO customers can be found at NIPSCO.com/SaveEnergy.