GOSHEN - What might have been thought to be a personal gripe session, the Indiana Utility Regulatory Commission hearing on Northern Indiana Public Service Co.'s annual gas cost review actually was a formal, legal proceeding, attended by approximately 50 consumers.

Legitimate, detailed points were presented to the IURC and the Office of Utility Consumer Counselor representatives.

From 5:30 to 6 p.m., Anthony Swinger, public information officer with the OUCC, provided an overview of the responsibilities of the OUCC and IURC and explained the procedures to be followed during the legal hearing that started at 6 p.m. The OUCC represents the interests of utility consumers in all IURC matters. The IURC is the regulatory body whose responsibility is to balance consumer and utility interests from a neutral standpoint.

Swinger explained the two components of gas utility bills - base distribution, which accounts for an average of 30 percent of the bill, and gas costs, which is approximately 70 percent of the average residential heating bill. The gas cost adjustment allows the utilities to pass the cost of natural gas through to the consumers, but may not profit on them. A complete background of the facts and activities leading up to the field hearing may be found at www.IN.gov/oucc

The panel hearing testimony at the hearing included IURC representatives: Chairman David Lott Hardy, Commissioner David W. Hadley and Judge Lorraine Hitz-Bradley, who led the proceedings; Amy Tokash, court reporter; Leja Courter, assistant consumer counselor with the OUCC, who called the witnesses and presented formal documentation to the IURC; Shaw Friedman, attorney for LaPorte County, and Peter Hatton, attorney representing NIPSCO, who also could ask questions of those testifying.

In addition to Swinger and Courter, the OUCC was represented at the hearing by: Susan L. Macey, utility consumer counselor; Mike Seufert, utility analyst-natural gas division; and Brent Shike, consumer services manager.

The first person to testify was Sharon Fowler of Syracuse, who secured the necessary signatures on a petition requesting the field hearing. As a "concerned citizen and single parent," she raised a number of issues that were repeated by others presenting testimony during the proceeding. She said, "I have compared other states (their rates) haven't gone up as much as NIPSCO.

"I'm concerned when I see children at risk, the elderly going without medicine to pay NIPSCO. (Since 2001) my budget payments have gone from low to very high." Fowler also spoke of "15 pages of petition to get another utility company."

She brought several natural gas cost comparisons with other companies in other states, which were entered as an exhibit in the hearing. Friedman asked for some of the details of the comparisons, which Fowler provided.

Amy Clifford, South Bend, said, "I'm troubled about the acquisition of Citizen's Gas. Why do they enjoy lower rates in central Indiana? NIPSCO needs to be prudent shoppers for our gas. ... Full disclosure is needed for NIPSCO's salaries and bonuses."

Clifford also was the first to relate an incident in South Bend in which a church was damaged when the pipes burst due to no heat over the weekend and Presidents Day holiday. The article recounting the incident in Wednesday's South Bend Tribune was later admitted as an exhibit in the case.

Friedman asked, "Do you think the Commission should have control over acquisitions and mergers?"

Clifford replied, "Yes." She also mentioned two bills introduced about full disclosure that have been delayed by the State Legislature.

Mark Catanjarite, South Bend, a firefighter, an elected official with St. Joseph County Council and a blue collar worker, backed up the facts he presented with examples of situations he encountered as a firefighter. "We were led to believe rates would be higher because of costs and cold weather, which really hasn't happened, but our rates are still high.

"People's health and safety are being placed at risk. I've seen people using turkey deep fryers inside (for heating and cooking) that should only be used outside. I've also observed many other unsafe practices to heat homes and cook.

"Our gas bill has has increased even with all the gas-saving measures we've taken."

Friedman asked, "As an elected official, has NIPSCO ever contacted you?"

Catanjarite replied, "No."

Friedman: "Has NIPSCO ever communicated any savings with the acquisition of Columbia Gas?"

Catanjarite: "There has been a lack of communication."

He continued, "I have cousins in Indianapolis for a similar size house as mine. Their gas bills are significantly less than mine. I hope the Commission does compare NIPSCO rates with other gas utilities in the state."

Dave Menzer, utiliy campaign organizer with the Citizens Action Coalition, testified on behalf of NIPSCO consumers. "Natural gas commodities are fluctuating wildly. The average bloc of natural gas is changing hands eight times. And there's the issue of energy bonuses. Do everything in your power to address this wild fluctuation.

"NIPSCO has consistently had the highest rates in Indiana over the past six years. Since the Columbia merger, NIPSCO rates have been higher in four out of the six years. I urge the Commission to look closely (at what's included in gas costs). and look at the effects of NIPSCO affiliates on the cost of gas. ... Scrutinize the affiliates in relationship to what its doing."

"The natural gas crisis is a long-term crisis. (NIPSCO) needs to look at making homes more efficient. Legislation was offered (bills) this session to audit NIPSCO and investigate Nisource to determine what's going on.

"Finally, I urge and encourage consumers to become involved in the efforts."

Friedman questioned the number of members of the CAC. The CAC represents 200,000 members statewide, however no statistics were available on how many of these members were served by NIPSCO.

Menzer closed with, "NIPSCO customer service has been dead last according to J.D. Power. NIPSCO reps are struggling to answer questions. NIPSCO is talking about outsourcing customer services to India."

Friedman mentioned the gas cost comparisons available on the IURC Web site at www.IN.gov/IURC

Fowler was recalled, still under oath, to present two letters from other consumers as exhibits. Several e-mails and letters received by the OUCC prior to the hearing were admitted as Field Hearing Exhibit 4, and Exhibit 5 included the written comments submitted during the hearing.

Swinger and others with the OUCC stressed the need for consumers to contact NIPSCO with questions about individual utility bills. If answers are unsatisfactory, contact the OUCC by mail to Consumer Services Staff, Indiana Office of Utility Consumer Counselor, 100 N. Senate Ave., Room N501, Indianapolis, IN 46204-2215; by fax to 317-232-5923; by e-mail to [email protected]; or at the OUCC Web site www.IN.gov/OUCC/contact/index.html [[In-content Ad]]