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In The Know.

Understanding how natural gas is transported, stored and delivered will give you a much better idea about where natural gas comes from as well as the many intricate steps that go into getting it from the well to your stove or furnace or gas fireplace. More importantly, this information will help clear up any confusion or even misconceptions you may have about those itemized charges that appear every month on your natural gas bill!

Natural Gas Is A Commodity.

The largest portion of your bill, the charges for the natural gas itself, reflect the performance of the natural gas commodity on the open market where supply and demand dictate the price. Experience and skillful inventory management allow us to better manage the price you pay for natural gas so that, barring crisis or drastic market fluctuations, we're able to offer you a range of competitive rate plans.

Transportation and Storage.

Moving the natural gas from where it is produced to the area where you live when you need it is a costly proposition. This cost can represent as much as 15-25% of your total bill. Weather, seasonal demand, natural gas inventory in storage, interstate pipeline capacity, regulatory requirements and safety/security issues all impact these charges. The experienced Vectren Source gas operations team works diligently to choose the optimal transportation routes and supply sources to minimize the price you pay for this portion of your rates.

Distribution.

Once we deliver the natural gas to your area's regional distribution points, your local gas utility has the responsibility to deliver it to your home and the wide range of homes and businesses connected to their pipelines and meters. They also read meters and in most cases provide your bill. This final distribution phase accounts for about 25-30% of your total monthly gas bill. The rates charged for these functions go to your local utility. They are approved by the state utility commission and are not controlled by Vectren Source.

Want To Know Even More?

One of the best informational resources we've found is located at http://www.naturalgas.org/, sponsored by The Natural Gas Supply Association. For an informative overview of the natural gas industry ­- from wellhead to your burner tip - simply click here. And enjoy.