NIPSCO plans for electric rate hike in 2023
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Will support cleaner electricity from renewable energy
Generating cleaner electricity from renewable energy projects and
upgrading its electric grid to support the transmission and monitoring of that electricity are some
of the key factors leading to NIPSCO’s request with the Indiana Utility Regulatory Commission
(IURC) to adjust its base electric rates next year. NIPSCO is a subsidiary of NiSource Inc.
(NYSE:NI).
While the proposed increase was filed with the IURC recently, it will undergo a thorough regulatory
review process, which includes the opportunity for the public to provide input. Any changes to a
customer’s bill that are ultimately approved by the IURC will be phased in over time beginning in
late 2023 and into 2024, versus a one-time increase.
NIPSCO’s last request to change electric rates was in 2018.
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.
Based on NIPSCO’s proposal, an average residential electric customer using 668 kilowatt hours
(kwh) per month, paying approximately $120 today, would see an overall increase of
approximately $19 per month, or approximately 16.5 percent, spread over multiple years.
The change would begin to occur by September 2023, with the remaining changes applied in March 2024 and July 2024.
As the company retires its remaining coal-fired generation, the costs associated with operating
and maintaining those facilities during the transition to more renewable resources will reduce
and eventually be eliminated.
This proposal ensures customers are only paying costs as
NIPSCO incurs them, and the associated savings of approximately $6 per month will be passed
directly back to customers – providing a more real-time benefit to customers.
Actual projected bill impacts may vary by customer – including non-residential customers –
depending on usage and future potential changes in market prices for commodities like coal.
Story Posted:09/24/2022
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