Lapel to Sell Gas Utility to Citizens Energy Group

$4.3 Million Sale Could Lower Rates by 22% for Residents

The Town of Lapel has officially entered the process of selling its natural gas utility to Citizens Energy Group in a deal valued at $4.3 million. The decision, approved by the Lapel Town Council earlier this month, marks a major shift in how natural gas service will be delivered to the community.

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Competing Bids: Citizens vs. Ohio Valley Gas

According to consultant Dan Cutshaw of MS Consultants, both Citizens Energy and Ohio Valley Gas submitted bids matching the appraised value of $4.3 million. While Ohio Valley Gas offered to lock in Lapel’s current rates for five years, Citizens Energy secured the deal by pledging to provide the same rates it currently charges in Westfield—a move that will result in an immediate 22% reduction in rates for Lapel customers.

“Citizens Energy will be providing the same rates as Westfield, which will be a 22% reduction to Lapel customers.” — Dan Cutshaw, MS Consultants

What Residents Can Expect

  • Lower Rates: Citizens Energy’s adoption of Westfield’s rate structure will reduce local bills by about 22%.
  • Timeline: The sales agreement is expected to be finalized at the council’s Sept. 10 meeting.
  • Regulatory Approval: The sale must be approved by the Indiana Utility Regulatory Commission (IURC), a process that could take up to 18 months.
  • Service Provider Transition: Citizens Energy Group will assume responsibility for operations, billing, and maintenance once approval is granted.

Why This Matters

The move comes after several difficult years for Lapel’s municipal gas system. During the polar vortex of 2021, Lapel was one of several small towns hit with wholesale gas costs over 70 times higher than normal, straining budgets and driving up customer bills. The town later became involved in a class‑action lawsuit, resulting in a $565,418 settlement in early 2024 that was distributed among local gas customers.

By selling the utility, Lapel aims to eliminate the financial risk of operating a small standalone system while delivering more predictable and affordable rates for residents.

Citizens Energy’s Track Record

Citizens Energy Group, a nonprofit charitable trust, already serves hundreds of thousands of Hoosiers. Known for reinvesting in infrastructure and providing regulated rates under IURC oversight, the utility emphasizes long‑term reliability and customer service.

If past acquisitions are any guide, Lapel residents can expect:

  • Infrastructure upgrades such as pipe replacements and safety improvements.
  • Customer service support backed by a larger utility provider.
  • Rate oversight through IURC review and approval processes.

Key Dates to Watch

DateEvent
Sept. 10, 2025Lapel Town Council expected to finalize the sales agreement
2025–2027IURC review process (up to 18 months)
After IURC approvalCitizens Energy officially assumes service in Lapel

Looking Ahead

If approved, this sale will provide Lapel with a $4.3 million windfall, reduce monthly gas bills for residents, and shift the responsibility of running the utility to a provider with deeper resources and experience.

As the Sept. 10 vote approaches and the IURC review begins, residents will be watching closely to see how this transition unfolds—and how quickly the promised savings reach their utility bills.

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