Vectren Corp : Natural gas remains most affordable home heating source in Ohio despite slight increase in natural gas prices, projected winter bills

Oct. 8, 2013

Media contact: Chase Kelley, (812) 491-4128 or kckelley@vectren.com

One Vectren Square

Evansville, IN 47708

Dayton, Ohio - Natural gas prices that have increased slightly from decade-low amounts seen in 2012 will likely lead to winter bill amounts that will be modestly higher than last winter but should still remain manageable given bills remain more than 35 percent lower than the winter bills of 2008-2009. Today, the Energy Information Administration (EIA) issued its winter outlook forecasting that heating bills, on a national average, will likely increase when compared to last winter because of this modest upward movement in gas prices.
However, natural gas continues to be recognized as the most affordable heating source according to EIA. In fact, Vectren Ohio gas customers who heated their homes with natural gas last year saved up to $1,060 compared to those who heat with an electric furnace and $335 to $905 compared to those who heat with an electric heat pump or propane, respectively.
The average Vectren customer, based on normal winter weather, paid $60 to nearly $70 per month in home heating costs during the 2012-2013 heating season for a five-month total of $300 to $340 depending upon the efficiency of the furnace and size of the home. Natural gas heating bills had not been this low since the heating season of 2001-2002.

* These amounts exclude costs for water heating or other appliances.
"For the past four winters, customers have seen year-over-year winter bill reductions due to falling gas costs that have now seemed to level off. Abundant gas supply in the U.S. has resulted in low, stable natural gas costs, which are passed through to customers on a dollar-for-dollar basis," said Colleen Ryan, president of Vectren Energy Delivery of Ohio. "Even though gas prices have moved upward modestly in the past 12 months, current prices are very favorable and will help keep winter heating costs affordable for our customers."
Vectren has in place a number of tools to help customers manage their energy bills.
• Energy efficiency programs - Offers appliance rebates and new energy-saving tools to help customers to lower their natural gas bills. All Ohio residential and small commercial natural gas customers are eligible. A conservation call center (866) 240-8476 is also available to help customers focus on conservation. Visit Vectren.comfor a list of rebates and qualifying appliances.

• Choice program: Through Vectren's natural gas Choice program, customers can choose a natural gas supplier that's right for them. Competing suppliers offer more pricing options for consumers, such as locking in a fixed rate, which allows them to comparison shop for energy the way they do for other products and services. Visit www.vectrenchoice.comfor a list of suppliers and up-to-date prices.

• Budget Bill : Under this billing plan, a customer's estimated costs for a year of gas service are spread out in equal monthly bill amounts for the year. This leveling of monthly bill amounts reduces the need to pay the full amount in the winter and spreads some of those higher bill charges into the non-heating months. Typically, amounts are adjusted annually for actual costs and the customer's credit or amount due rolls into the next calculation. A mid-winter recalculation may occur for some customers if gas costs significantly change during the heating season. Customers can enroll for free at www.vectren.comor by calling 1-800-227-1376.

• Home Energy Assistance Program (HEAP): State and federal utility assistance dollars are available for income-eligible customers. Households must fall within 200 percent of federal poverty guidelines, which would be about $46,000 for a family of four, to apply.

• Emergency Home Energy Assistance Program (E-HEAP): E-HEAP provides assistance once per heating season to eligible households that are disconnected or are threatened with disconnection. Households must fall within 200 percent of federal poverty guidelines to apply.

• Percentage of Income Payment Plan Plus (PIPP Plus): PIPP Plus calls for a qualified household to pay 6 percent of its monthly income for gas service throughout the year. To be eligible for the PIPP Plus program, a customer must receive his or her primary or secondary heat source from a company regulated by the Public Utilities Commission of Ohio (PUCO), must have a total household income which is at or below 150 percent of the federal poverty, which would be more than $35,000 for a family of four, and must apply for all energy assistance programs for which he or she is eligible.

• Project TEEM: Vectren's Project TEEM (Teaching Energy Efficiency Measures) helps qualifying Ohio customers implement energy efficiency improvements to their homes at no cost. Households must fall within

300 percent of federal poverty guidelines, which would be about $70,000 for a family of four, to apply. Call 1-
800-617-2673 to learn more or visit www.cap-dayton.org.

• Share the Warmth: Those wanting to help the less fortunate with their energy bills can contribute to Share the Warmth, a nonprofit organization that assists income-eligible customers with home weatherization services. Each year, Vectren matches all public donations, up to an annual total of $200,000. Donations may be tax-deductible and can be sent to Share the Warmth, P.O. Box 931, Evansville, IN 47706-0931 or visit www.sharethewarmthinc.com.

"We know many still find themselves in need of financial assistance, and we encourage them to reach out to us before they get behind on payments" said Ryan. "Programs like HEAP and Project TEEM are critical in helping customers manage costs and stay warm. We encourage customers to contact their local community action agency today and apply for financial and/or home weatherization assistance."
Vectren Energy Delivery of Ohio delivers natural gas to approximately 315,000 customers in all or portions of Auglaize, Butler, Champaign, Clark, Clinton, Darke, Fayette, Greene, Highland, Logan, Madison, Miami, Montgomery, Pickaway, Preble, Shelby and Warren counties.

Vectren Corporation (NYSE: VVC) is an energy holding company headquartered in Evansville, Ind. Vectren's energy delivery subsidiaries provide gas and/or electricity to more than 1 million customers in adjoining service
territories that cover nearly two-thirds of Indiana and west central Ohio. Vectren's nonutility subsidiaries and
affiliates currently offer energy-related products and services to customers throughout the U.S. These include infrastructure services, energy services and coal mining. To learn more about Vectren, visit www.vectren.com.
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