What Indianapolis Homeowners Should Expect on Their Gas and Electric Bills This Winter
No local outlet has converted the approved utility rate increases into real dollar figures for a typical Marion County household. We did the math. Then we mapped every assistance program you can ap…
No local outlet has converted the approved utility rate increases into real dollar figures for a typical Marion County household. We did the math. Then we mapped every assistance program you can apply to before October.
There’s a narrow window between now and October 1 when Indianapolis residents can actually do something about their winter energy bills. After that date, Citizens Energy Group’s newly approved rate increase takes effect. AES Indiana’s already-approved changes continue in force. The first cold snap—which historically arrives in Marion County sometime in the second half of October—turns every delayed decision into a more expensive one.
Rate cases generate press releases and regulatory filings but almost never convert approval documents into numbers a household can use. The Indiana Utility Regulatory Commission approves a new distribution rate. Citizens Energy sends a bill insert explaining it in broad terms. Local outlets run a brief noting the change is coming. Nobody converts the approved figures into a line on a budget.
We did that conversion. We also pulled together every assistance program available to Marion County residents, with eligibility thresholds, deadlines, and the specific local intake points where applications are actually processed. That information is scattered across six different agency websites with no single local roundup. Here’s what you need to know before September ends.
What the Rate Increase Actually Costs a Typical Indianapolis Home, Month by Month
Start with what the bill is made of. A Citizens Energy natural gas bill has two principal cost components, and they behave very differently.
The first is the distribution charge—the cost of maintaining the pipeline infrastructure that delivers gas to your address. This is the component that Citizens Energy’s rate case before the IURC governs. Citizens Energy’s approved rate increase raises the residential distribution charge for a typical customer by approximately $6 to $8 per month in base fixed and volumetric distribution costs under the approved tariff schedules. The increase reflects infrastructure investment recovery the utility argued before the commission; the Indiana Utility Regulatory Commission approved the adjusted rates effective October 1.
The second is the Purchased Gas Adjustment, or PGA. This is the wholesale cost of the natural gas itself, and it floats monthly with market prices—primarily tracking the Henry Hub benchmark. The PGA has nothing to do with the rate case. Citizens Energy resets it monthly based on what the utility paid for gas in the commodity market. In a winter where Henry Hub prices spike—as they did in early 2022 and again in early 2024—the PGA component can add far more to a household bill than any regulatory rate increase. Citizens Energy explains this in bill inserts, which most customers discard without reading. Understanding this distinction matters because it separates what you can anticipate from what depends entirely on forces outside any utility’s control.
A typical Indianapolis household faces a combined energy budget of roughly $285–$355 per month during peak winter months. Here’s a realistic estimate of what a typical home’s gas bill looks like this season.
The household: A 1,400–1,600 square foot Marion County home, occupied by a family of three, with natural gas heating and a gas water heater. Peak-month consumption runs roughly 80–100 therms in January and February; shoulder months (October, November, March) run 30–60 therms.
The methodology: Monthly bill estimates apply the approved Citizens Energy distribution rate (fixed customer charge plus volumetric distribution rate per therm) plus a PGA figure based on recent Citizens Energy PGA postings, which have been tracking in the range of approximately $0.50–$0.70 per therm in late 2024 and early 2025. These are estimates, not guarantees. Actual bills depend on your specific usage, thermostat habits, and the PGA in any given month, which Citizens Energy posts on its website before each billing cycle.
| Month | Est. Therms Used | Last Year’s Estimated Bill | This Year’s Estimated Bill | Year-Over-Year Difference |
|---|---|---|---|---|
| October | 35–45 | $55–$70 | $63–$80 | +$8–$10 |
| November | 55–70 | $80–$105 | $90–$118 | +$10–$13 |
| December | 75–90 | $110–$135 | $124–$152 | +$14–$17 |
| January | 90–105 | $130–$158 | $147–$178 | +$17–$20 |
| February | 85–100 | $123–$150 | $139–$169 | +$16–$19 |
| March | 50–65 | $75–$98 | $85–$110 | +$10–$12 |
Six-month cumulative difference: approximately $75–$91 more than last winter, assuming gas commodity prices hold roughly steady. If the PGA rises—a reasonable risk given that Henry Hub forward prices for winter 2025–2026 have been trending above last year’s levels—the actual gap could widen considerably.
These are honest estimates built from publicly available rate data, not a utility bill simulator. Your home’s insulation quality, square footage, thermostat setting, and equipment efficiency all move the actual figure. A drafty 1920s bungalow in Irvington running a 15-year-old furnace at 68°F will see numbers at the high end of these ranges or above them—maybe well above them. A recently weatherized ranch with a 96% AFUE furnace will likely come in below them. A typical Marion County household should budget for roughly $140–$180 per month in natural gas costs during the coldest months of this winter, with genuine uncertainty on the upside from commodity prices.
AES Indiana Electric Costs Are Also Up—Here’s the Combined Household Hit
AES Indiana, which serves the overwhelming majority of Marion County electric customers, received IURC approval for a residential rate increase that pushed the effective residential rate to approximately $0.16–$0.17 per kilowatt-hour on a blended basis (including distribution, transmission, and applicable riders). That increase has been in effect since earlier this year, so you’ve likely already seen it on your bills without necessarily knowing why.
A typical Marion County household uses roughly 900–1,000 kWh per month in the fall and winter—less than summer air conditioning peaks, but still a significant line item. At the approved rates, that translates to approximately $145–$175 per month in electric costs this winter, depending on usage and which riders apply to your specific account.
Combined with the gas estimates above, a typical Indianapolis household is staring down a real number. Neither of these figures is individually shocking in a national context. Together, in the same month, in the same checking account, during the same economic climate of elevated grocery and housing costs, they place genuine pressure on household finances for a significant share of city residents. For a household on a fixed income or earning near the median Marion County wage, that combined bill isn’t just uncomfortable—it’s a constraint that reshapes the rest of the monthly budget. We track related financial pressures on Indianapolis households across our home & property coverage.
Do You Qualify for LIHEAP and When Does Enrollment Open
The Low Income Home Energy Assistance Program—LIHEAP—is a federally funded, state-administered benefit that pays a direct credit toward your utility bill. The money goes to Citizens Energy or AES Indiana on your behalf; you don’t receive a check. For eligible households, the benefit can cover a significant portion of one monthly bill during the heating season, and in some years has provided multiple payments depending on federal appropriation levels.
Income eligibility for Indiana’s 2026–2027 heating season is set at 60% of State Median Income. The approximate thresholds by household size are:
| Household Size | Annual Income Limit (approx.) |
|---|---|
| 1 person | $29,400–$30,200 |
| 2 people | $38,500–$39,600 |
| 3 people | $47,600–$48,900 |
| 4 people | $56,700–$58,200 |
Note: Indiana’s SMI-based thresholds are updated annually. Confirm current figures with CAGI or IHCDA before applying, as figures for the 2026–2027 program year may be adjusted.
Households receiving SNAP, SSI, or TANF benefits are categorically eligible in most program years and may have a streamlined intake process.
Indiana’s LIHEAP heating season enrollment typically opens in late October or early November. The Marion County intake point is Community Action of Greater Indianapolis (CAGI), located at 3265 N. Meridian St. CAGI handles both initial applications and recertifications, and their energy assistance staff can determine eligibility for LIHEAP, the federal weatherization program, and Citizens Energy’s own low-income programs in a single intake appointment when resources permit—which is worth knowing, because making three separate trips to three separate offices is how people fall through the cracks.
CAGI’s energy assistance line is (317) 396-1800. Hours for intake vary seasonally and appointment slots fill quickly once the enrollment window opens—which is a direct reason to gather your documents now, in September, rather than in November when the line is longer.
You’ll need to bring proof of income for all household members for the prior 30 days (pay stubs, Social Security award letters, pension statements), a current utility bill showing your account number for both gas and electric, a government-issued photo ID, and Social Security numbers for all household members.
Indiana maintains a LIHEAP Crisis Benefit available year-round—separate from the main heating season benefit—for households facing imminent utility shutoff or who have already had service disconnected. If your Citizens Energy account is past due and you’re approaching or past a shutoff notice, contact CAGI immediately and ask specifically about crisis assistance, regardless of whether the main enrollment window is open. This lifeline exists for the households most vulnerable to the bill increases outlined above.
Citizens Energy’s Own Low-Income Program, REAP, Is Almost Never Covered
Citizens Energy operates its own assistance program independently of LIHEAP, and local editorial coverage of it is thin and often outdated. The Residential Energy Assistance Program, called REAP, provides ongoing monthly bill assistance to income-eligible Citizens Energy customers. It functions as a rate discount applied to your bill each month, not a one-time annual credit—which is a meaningful distinction that changes how much it’s worth to you over a full heating season.
REAP eligibility is based on household income relative to federal poverty guidelines. Customers at or below 150% of the federal poverty level are generally eligible, though Citizens Energy should be contacted directly to confirm current thresholds, as program parameters can be adjusted. For reference, 150% of federal poverty in 2025 is approximately $22,590 for a single-person household and $38,730 for a family of four.
The benefit structure reduces the monthly bill by a percentage or fixed amount depending on income tier—the specific discount amount is determined at intake and applied directly to your Citizens Energy account each billing cycle. Because it’s a monthly ongoing benefit rather than a lump-sum seasonal payment, REAP can deliver more value over a full heating season than a single LIHEAP credit, particularly for households that qualify for both. You can apply through Citizens Energy’s customer service line at (317) 924-3311 or through CAGI, which can process REAP applications concurrent with LIHEAP intake.
There’s no cost to apply, no deadline that closes annually the way LIHEAP enrollment does, and no penalty for applying and being found ineligible. If you’re a Citizens Energy customer and your household income is anywhere near the thresholds described above, apply for REAP in September—before your bill increases, before the first cold snap, and before CAGI’s appointment slots fill with LIHEAP applicants.
Free Weatherization for Income-Eligible Indianapolis Homes—But the Waitlist Is Real
Indiana’s Weatherization Assistance Program, funded primarily through the U.S. Department of Energy and administered by the Indiana Housing and Community Development Authority (IHCDA), can pay for attic insulation, wall insulation, air sealing, furnace tune-ups and replacements, water heater upgrades, and health-and-safety repairs in income-eligible homes at no cost to the homeowner or renter.
Income eligibility is set at 200% of the federal poverty level. Approximate 2025 figures:
- 1-person household: ~$30,120 annually
- 4-person household: ~$51,500 annually
Renters can apply but require landlord cooperation; IHCDA and CAGI staff can explain the renter pathway. The Marion County waitlist for weatherization has historically run 12 to 24 months or longer. Let me be direct about what that means: this is not a program you’ll receive before this coming winter. If you apply in September 2025, a realistic outcome is weatherization work completed in fall or winter of 2026—still worth having, still worth applying for, but not a solution to January’s bill.
The reason to apply now anyway is simple arithmetic: the waitlist doesn’t get shorter by waiting. A slot claimed today is a weatherized home by next winter. A slot not claimed today is an indefinitely delayed outcome. Pre-1970 housing stock—which is common in Fountain Square, Irvington, the Near Eastside, and Mapleton-Fall Creek—has the highest infiltration losses and stands to benefit most from air sealing and insulation work. Those neighborhoods also have higher concentrations of income-eligible households. For homeowners in those areas weighing longer-term improvements, how much foundation repair costs in Indianapolis is one of the related structural expenses worth understanding before winter.
Post-Inflation Reduction Act federal funding did increase weatherization appropriations nationally, and IHCDA received additional allocations that improved throughput in Marion County. However, demand has also increased as more households have become aware of the program, and local contractors qualified to perform DOE-standard weatherization work remain a bottleneck. IHCDA’s most recent public communications indicate the waitlist pressure in Marion County hasn’t been eliminated by the additional funding, though processing times have improved at the margins.
To apply: Contact CAGI at 3265 N. Meridian St. or call (317) 396-1800. IHCDA’s statewide WAP portal is at ihcda.in.gov, where you can also check application status if you’ve already applied.
What to Do in September—A Dated, Indianapolis-Specific Action List
Before September 20: Book your furnace service appointment.
Indianapolis-area HVAC companies typically fill October appointment slots by mid-month—sometimes earlier. A furnace tune-up runs $80–$150 from most local providers and can catch heat exchanger cracks, dirty burners, and filter conditions that reduce efficiency. If your furnace is 15 years or older, a service call is also the moment to get a professional assessment of remaining life and replacement cost. You won’t be making that decision clearly in January when the heat goes out at 11pm and you’re looking at a $6,000 quote under duress. Call now.
Before September 25: Gather your LIHEAP documents.
The enrollment window opens in late October or early November. The households that lose out are usually not those who are ineligible—they’re those who show up without documentation and can’t get a second appointment before the benefit year’s funds are allocated. Pull your most recent Citizens Energy and AES Indiana bills, your most recent pay stub or benefit award letter, your ID, and Social Security cards for household members. Put them in a folder. This takes 30 minutes and eliminates the most common application failure point.
In September, any day: Apply for REAP and WAP.
Neither program has a closing deadline. Both are no-cost to apply. REAP applications through Citizens Energy or CAGI take under an hour. WAP applications through CAGI get you on a waitlist that starts running the day you apply. Do both now. There is no version of this where applying early hurts you.
Before the end of September: Weatherstrip and caulk your worst air leaks.
If you live in pre-1970 housing—and if you live in Fountain Square, Irvington, the Near Eastside, or Mapleton-Fall Creek, there’s a meaningful probability you do—window frames, door frames, basement rim joists, and attic access hatches are the highest-priority infiltration points. A $25 kit of weatherstripping and a $6 tube of low-expansion foam from any hardware store can reduce drafts noticeably in an older home. Marion County’s first hard freeze typically arrives between mid and late October. Air sealing before that point retains heat; after the freeze it’s remediation.
In September or early October: Replace your furnace filter if you haven’t in the last 90 days.
A clogged filter forces the blower to work harder and can restrict airflow enough to cause the heat exchanger to overheat and cycle off on limit. A $10–$20 filter is the lowest-cost maintenance item with a direct efficiency impact. This applies to rental units too—renters are generally responsible for filter changes under most Indianapolis lease agreements. Check yours.
Before October 1: Review your Citizens Energy PGA online.
Citizens Energy posts the current Purchased Gas Adjustment rate at citizensenergygroup.com. The PGA resets monthly. If you want to understand your bill’s moving parts before the heating season starts, reading the PGA posting takes five minutes and gives you the context to know whether a high bill in any given month reflects the distribution rate or the commodity market. It won’t change the number, but it’ll tell you what you’re actually looking at.
Contact Directory
Every number and address you need, in one place.
Community Action of Greater Indianapolis (CAGI) LIHEAP enrollment, WAP applications, REAP intake 3265 N. Meridian St., Indianapolis, IN 46208 Phone: (317) 396-1800 Hours: Confirm current intake hours directly; energy assistance appointment availability changes seasonally.
Citizens Energy Group Customer service, REAP applications, billing questions, PGA information Phone: (317) 924-3311 Website: citizensenergygroup.com For REAP specifically, ask the customer service representative for the income assistance program or navigate to the “Bill Assistance” section of the website.
AES Indiana Customer service, payment arrangements, low-income rate inquiries Phone: (888) 261-8222 Website: aesindiana.com
Indiana Housing and Community Development Authority (IHCDA) Statewide WAP portal, application status, program information Website: ihcda.in.gov Navigate to “Programs” and select Weatherization for the application portal and county contact list.
Indiana Utility Regulatory Commission (IURC) Public docket access for Citizens Energy and AES Indiana rate case orders Website: in.gov/iurc Use the case search tool to locate the Citizens Energy distribution rate case and the AES Indiana residential rate case orders if you want to review the actual approved tariff schedules.
The window is September. After October 1, Citizens Energy bills go up. LIHEAP enrollment competes for limited funding. HVAC technician schedules fill. The programs described above exist for Indianapolis residents in exactly the situation this winter’s rate increases create. They’re just never all described in the same place, in the same piece, with the same dollar figures.
Now they are. Make the calls.
