NIPSCO/NiSource headquarters in Merrillville

NIPSCO requests electric rate hike

Contributed By: The 411 News

Northern Indiana Public Service Company LLC (NIPSCO) announced Thursday it has made a request with the Indiana Utility Regulatory Commission (IURC) to adjust its electric rates.

Since 2021, each year has brought a gas hike, followed by an electric hike the next year, followed by a gas hike, and now a new electric hike.

Although electric rates were increased in 2023, the utility said, “In order to continue to deliver a safe, reliable supply of electric service, we must continue to invest in our system to upgrade aging infrastructure. Costs to implement and complete these upgrades have increased.”

For residential customers, NIPSCO is proposing an increase of $32 per month or 22% above a customer’s projected bill at the time of implementation. “The change would begin to occur by September 1, 2025, with the remaining changes applied by March 2026,” said Tara McElmurry, NIPSCO Communications Manager.

Driving the rate increase is approximately a $2 billion investment, through 2025, in the transition to renewable energy generation – wind, solar, and battery storage of electricity.

NIPSCO said it is also investing approximately $769.5 million for electric transmission and distribution system upgrades, technology improvements, and safety and reliability initiatives to be completed by the end of 2025, with plans for similar investments into the future.

The increase will help pay for a new bill payment assistance program for those who have trouble paying their electric bills.

Additionally, NIPSCO has proposed a new multifamily housing rate structure that, if approved, would allow for a 9 percent, or approximately $10 decrease per month, to an average multifamily housing customer using 444 kilowatt per month compared to the standard residential rate.

As a regulated energy provider, NIPSCO cannot change any rates or charges to its customers without the approval of the IURC. NIPSCO’s natural gas rates are not affected by this request.

The total overall requested revenue increase by NIPSCO is about $368.7 million annually over current revenues.

At a meeting with the utility’s community partners in December 2023, then NIPSCO President and Chief Operating Officer Mike Hooper said the yearly rate hikes will likely continue throughout the end of the decade.

Story Posted:09/14/2024