Agreement reached in NIPSCO’s proposal to modify electric rates

OUCC, Industrial Customers and Municipal Group Support Revised Outcome


Northern Indiana Public Service Company (NIPSCO) electric customers will see a lower rate increase than originally proposed in the company’s pending rate case under terms of a collaborative agreement reached by NIPSCO, the Indiana Office of Utility Consumer Counselor (OUCC), NIPSCO’s industrial customers, the Indiana Municipal Utility Group and the United Steelworkers, with no opposition from La Porte County.

The proposed agreement is subject to Indiana Utility Regulatory Commission (IURC) review and approval, and new rates are not expected to take effect until the second half of 2016.

This settlement will limit the base rate increase to residential customers to 5.4 percent, which is down from the 11 percent proposal in NIPSCO’s original October 2015 request.

Included within the overall bill impact will be a modest increase in the fixed monthly customer charge from $11 to $14, instead of the $20 charge originally proposed.

The change for individual commercial and industrial customers will vary depending on usage patterns, but on average, rates for overall commercial and smaller industrial customers would increase less than the original proposal.

“Since the last change in electric base rates, NIPSCO has made considerable investments to improve service to customers while effectively managing costs,” said NIPSCO executive vice president, Violet Sistovaris. “This outcome strikes the right balance to help ensure that our customers continue to have the affordable, reliable and environmentally sustainable energy they need now and in the future.”

“Through arms-length negotiations, we have reached a reasonable compromise on NIPSCO’s rate increase request,” said Indiana Utility Consumer Counselor David Stippler. “As a result of this agreement, NIPSCO’s revenue increase will be over 40 percent less than originally requested, resulting in a benefit for NIPSCO’s customers of more than $54 million. This benefit, coupled with other terms reached in the settlement, will bring this case to a fair resolution.”

Customers Benefit From Outcome

In reaching a comprehensive and balanced resolution of the issues in this case, some of the benefits achieved by the settlement include:

  • Smaller overall bill impact and substantially reduced monthly customer charge increase for residential, commercial and industrial customers when compared to the original proposal
  • Platform for NIPSCO’s continued investments and service improvements for customers
  • Offering of a new LED streetlight rate, which supports a new LED streetlight conversion program for municipalities awaiting approval in NIPSCO’s infrastructure modernization plan
  • Expands interruptible program for industrial customers with questions regarding NIPSCO’s proposal may visit for more information. Natural gas rates are not at issue in this case.

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