NIPSCO explains spiking gas, delivery costs
Many NIPSCO consumers are seeing high delivery charges on their bill.
With some sharing that their delivery charge is twice, or even three times, the amount of the gas they’re paying for.
So what does the delivery charge actually cover?
When consumers open their NIPSCO bill they are met with a breakdown of charges including gas supply and delivery.
Gas supply charges cover what NIPSCO pays to move gas, store it, and the amount of the actual gas you use.
The delivery charges cover the cost of moving gas from NIPSCO’s pipes to your home or business.
NIPSCO sent a statement:
“The customer’s bill is made up of two main parts: the cost of the natural gas itself, which is listed on the bill as Gas Supply Charges, and the cost to safely deliver that gas to the customers home, which is listed as Delivery Charges. The Delivery Charge includes the costs of all infrastructure, such as gas transmission mains, distribution mains, and service lines, regulator stations, etc.
We want to reassure customers that NIPSCO does not control or mark up the cost of natural gas, the Gas Supply Charges. Those prices come directly from market prices, and we simply pass them through based on customer usage. This part of the bill changes based on how much gas a customer uses, so bills are typically higher in the winter heating months than in warmer months as more natural gas is utilized to heat the home.
The Delivery Charge covers the work it takes to operate and maintain the entire system that brings gas safely and reliably to the customer’s home. Similar to the Gas Supply Charge, this part of the bill changes based on how much gas a customer uses. So, when it gets colder and furnaces run more often, the Delivery Charge portion naturally goes up because more natural gas is being used.
Customers are not alone in seeing higher Delivery Charges right now. Because of the cold temperatures, customers across our service area are using more natural gas than they were in warmer months. For example, in January 2026, the average customer is using about 160 therms compared to just 14 therms in August 2025. That’s more than 11 times as much usage, and it has a significant impact on the bill.
To help avoid these seasonal spikes, NIPSCO offers a free program called the Budget Plan, which spreads energy costs out over the entire year so bills stay more predictable and easier to manage, even during winter. Customers can learn more or sign up anytime at NIPSCO.com/BudgetPlan”
Gas supply charges cover what NIPSCO pays to move gas, store it, and the amount of the actual gas you use (WSBT Photo)
Gas is measured in therms and your gas bill is measured by how many therms you use in a month.
One therm is equivalent to running a gas furnace for a few hours or heating a standard home water heater for the day.
How many therms you use in a day is then multiplied by the gas commodity charge to get your total cost for monthly gas usage.
“The cost of the actual natural gas commodity accounts for a significant portion of a customer’s bill. On average, gas usage accounts for approximately 43% of a customer’s bill, while distribution costs account for approximately 51%,” according to the Indiana Utility Regulatory Commission’s 2025 Fiscal Report pg. 71.
Meaning on average the delivery charge will be more than the amount of the actual gas you use.
Although there is no way to change the delivery charge.
According to NIPSCO, here are some ways to help you save on your monthly bill:
- Reverse ceiling fans
- install window film or storm windows
- Don’t block ducts with furniture
NIPSCO also offers customers financial assistance and budget plans to help manage utility bills.
Customers can apply under your account on the NIPSCO website, under budget plan.