Why are the prices on my natural gas bills different from current "spot market" prices?

Published 03/17/2009 10:19 AM   |    Updated 12/27/2013 03:05 PM

Why are the prices on my natural gas bills different from current "spot market" prices?

Natural gas utilities in Indiana and throughout the nation purchase gas on the competitive national wholesale market. This includes buying some of their gas - but not all - on the spot market. Utilities use a number of tools - including spot market purchases, futures contracts and storage - in purchasing gas and planning for the winter heating season each year. All of these factors affect retail natural gas prices.

The OUCC's natural gas prices (http://www.in.gov/oucc/2387.htm) and gas cost adjustments (http://www.in.gov/oucc/2388.htm) fact sheets offer additional information.

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