NIPSCO Receives Approval for 16.75% Electric Rate Increase

MERRILLVILLE, Ind. — The Northern Indiana Public Service Company LLC (NIPSCO) has gained approval from the Indiana Utility Regulatory Commission (IURC) for a significant 16.75% increase in electric rates for average residential customers. The adjustment, approved in late June, will be implemented over the next two years, with the first phase starting this month.

For the typical NIPSCO customer consuming 672 kilowatt-hours (kWh) per month, this rate hike will lead to an additional $23 on their monthly bill. The increase varies by usage, with large industrial customers facing an uptick of around 10% and small to medium-sized businesses seeing increases of 15.68% to 17.2%. The adjustments reflect a broader strategic shift for NIPSCO as it seeks to modernize its service infrastructure.

The approval follows extensive discussions involving stakeholders, including the Indiana Office of Utility Consumer Counselor (OUCC), along with major businesses like U.S. Steel and Walmart. NIPSCO President Vince Parisi emphasized the importance of balancing critical investments while mitigating impacts on customers during this transitional period.

The rate increase is part of a larger plan to raise $2.08 billion annually for capital investments in renewable energy initiatives, such as wind and solar projects, while also phasing out coal usage. The annual revenue from this adjustment is $257 million less than initially proposed.

Residents have expressed concerns over service reliability, especially after enduring power outages that lasted days during recent storms. NIPSCO has committed to enhancing infrastructure by investing $769.5 million in upgrades aimed at better resilience. The company has already replaced over 300 miles of underground cable and treated more than 300,000 wooden poles.

Despite these measures, some community members and consumer advocacy groups are apprehensive about the rate increases. The Citizens Action Coalition criticized the settlement process for favoring larger businesses while placing heavier burdens on residential customers. The Hobart school district also voiced concerns about a growing deficit due to higher electricity costs.

As part of addressing customer concerns, NIPSCO will introduce new assistance programs next year that offer payment plans, eliminate deposits for low-income customers, and waive specific reconnection fees. Customers can also access the Low Income Home Energy Assistance Program (LIHEAP) to receive support during the winter months.

For more details on assistance programs or billing inquiries, customers can contact NIPSCO’s Customer Care Center at 1-800-464-7726.