Fluctuations in natural gas market prices are reflected in NIPSCO's monthly GCA price. You can avoid these fluctuations by locking into a fixed price for 12 months.

When you choose the Fixed Price Option, you'll pay a set price per therm for the Gas Commodity charge on your bill. While your usage may vary from month to month, the price per therm stays the same. Your Gas Commodity charge does not include your Gas Delivery charge, or other Gas Supply charges such as Interstate Transportation and Storage charges - these are shown separately on your bill.

Example Calculations below show how the PPS Fixed Price Option works:

 

PPS Fixed Price Option Example: Fixed Price = $1.00/therm

The price you pay for each therm of natural gas will be $1.00/therm for a one-year period regardless of market changes.

Month A - Current GCA Price = $1.10/therm

Your Fixed Price of $1.00/therm would be used to calculate your Gas Commodity charge. If you use 100 therms of gas, your charge would be:

100 therms x $1.00 = $100.00

Month B - Current GCA Price = $0.90/therm

Your Fixed Price of $1.00/therm would be used to calculate your Gas Commodity charge. If you use 100 therms of gas, your charge would be:

100 therms x $1.00 = $100.00

 

Remember – Your Gas Delivery and other Gas Supply charges will still be billed separately, whether or not you choose PPS. The Delivery portion of your bill experiences very little fluctuation on a per therm basis. The Interstate Transportation and Storage charges are reviewed and updated on a regular basis. The values used in the Example Calculations above are for demonstration purposes only, and do not reflect current PPS Fixed option pricing and fees.