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Sunday, Nov. 17
The Indiana Daily Student

Commission lowers heat cost

Indiana residents could save if company doesn't appeal proposed price cut

For the moment, the cost of heat has been lowered.\nThe Indiana Utility Regulatory Commission passed an order that rejects a portion of the proposed cost increase sought by Indiana Gas Co. Those who get their heat from Indiana Gas might save 3.2-3.9 percent off their monthly bills -- if Indiana Gas does not appeal the decision. \nMike Roeder, spokesman for Indiana Gas, said the company might not accept the decision. \n"It's not an automatic assumption that it's a return to consumers," he said.\nThis year, winter has taken a bite out of consumers' pocketbooks. Heat is costing nearly twice as much as last year and, in some cases, three times as much. \nRoeder said the commission should not hold the company responsible for a nationwide energy problem. He said the company is essentially a middleman that delivers gasoline and shouldn't be held accountable for high gas prices. \n"We bring the gas to you," he said. "We're disappointed the commission has decided to take a national problem and shoot the messenger."\nIf the order stays, consumer advocates say the decrease will be a substantial victory, considering that most people's bills are doubling. \nRoeder said if Indiana Gas does not appeal the decision, consumers will save dollars. Instead, he encourages customers to look at a company plan that would balance the bill throughout the year. \nDespite the minimal savings, one consumer group, the Indiana Office of Utility Consumer Counselor, backs the decision to lower heating costs. It is a state-run agency that works to represent the interests of consumers using utility services. \n"This ruling ... sends a strong message to the utilities," Indiana Utility Consumer Counselor Anne E. Becker said in a press release. "State law clearly requires gas utilities to make every effort to find the most reasonable costs for wholesale purchases.\n"We… are pleased that our efforts will keep consumers from bearing the full brunt of the higher gas costs. Today's action may mean a modest decrease from the levels the bills could have reached, but we applaud any action that alleviates a portion of these steep financial burdens."\nAnthony Swinger, spokesman for the consumer advocate, said the reduction of prices is a win for consumers and a message to gas companies that they are being watched.\n"We believe the ruling is a victory, because the commission has looked at the matter and taken action," he said. "The ruling from the commission will not allow the Indiana Gas Company to pass the entire amount on to the consumers."\nThe law of supply and demand and a colder winter are two of the reasons why bills have become harder to pay. \nMary Beth Fisher, director of public information, said the regulatory commission tries to balance the needs of the gas company and the consumer.\nShe said it can be a tough line to walk.\n"The gas companies sometimes buy at a fixed cost," she said. "This is looked at on a case-by-case basis."\nRoeder said if Indiana Gas doesn't file an appeal, it won't be the last company to be affected. \n"We'd be very surprised if the commission doesn't take up with other gas companies," Roeder said. "This is a national issue."\nRegardless of the outcome, Fisher pointed out an obvious bill relief program. \n"Eventually, it is going to warm up. I think most people will see relief in their bills" he said.

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