MERRILLVILLE – Northern Indiana Public Service Company LLC (NIPSCO) received a decision from the Indiana Utility Regulatory Commission (IURC) to adjust its electric rates, effective August 2023.
The newly approved rates will be phased in over a multi-step process to spread out the changes to customer bills beginning in August 2023, with the remaining changes applied in 2024.
“Customers expect safe, dependable electric service at the lowest cost possible,” said Mike Hooper, NIPSCO president. “This decision balances new rates in a way that allows NIPSCO to continue making the necessary investments in our infrastructure and technology to serve customers. Meanwhile, this outcome also supports safety, reliability and sustainability, with a significant portion of the investments tied to our energy transition and the addition of new renewable energy projects located in Indiana – which are already providing direct economic benefits to our customers and communities.”
NIPSCO is transitioning to a more balanced energy portfolio, according to a news release from NIPSCO. The transition includes renewable energy sources – which are operational and serving customers well – representing more than $800 million in new investments through 2023. In turn, customers benefit by receiving all of the revenue when excess power is generated and sold into the market. Since 2021, more than $60 million in credits has gone back to customers associated with excess power and renewable energy credit sales from the company’s new renewable and existing generating units.
The newly approved rates also support the company's investment of approximately $700 million in electric transmission and distribution system upgrades, technology improvements, and safety and reliability initiatives to be completed by the end of 2023, with plans for similar investments into the future, the release states.
How Will Residential Customer Bills Change?
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 IURC decision follows a nearly year-long, extensive review process including public input and collaborative agreement reached with the Indiana Office of Utility Consumer Counselor (OUCC) and the NIPSCO Industrial Group, according to the release.
Based on a review of the IURC’s decision, the average residential electric customer using 668 kilowatt hours (kwh) per month will see an overall increase of approximately $12 per month (or 10%), with the change being phased in over multiple steps beginning in August 2023 and into 2024. This change is lower than the initial proposed monthly increase of approximately $19 per month, or 16.5%.
As the company retires its remaining coal-fired generation by 2028, the costs associated with operating and maintaining those facilities will be reduced and eventually eliminated. Included in Wednesday’s decision is a component that ensures customers are only paying costs as NIPSCO incurs them, 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.
Additional Customer Benefits:
There are other customer benefits associated with this change, including:
• Continued investments to protect the electric grid against cybersecurity threats.
• A broad range of system upgrades to increase reliability.
• Modernization of the electric grid with automated technology that pinpoints problems and allows us to make repairs more efficiently.
• Enhanced overall customer experience through the introduction of new products and services. Examples of recent enhancements include a mobile app, along with the ability for customers to connect with customer care agents online via live or automated chat, the continuation of energy efficiency programs and more.
• NIPSCO funding assistance to Community Action Programs to enable health and safety work for the low-income weatherization program.
Payment Assistance & Energy Savings Programs Available
As the current economic effects of inflation and other rising costs are being experienced, it’s important to know that help continues to be available. Bill payment assistance programs are available for customers experiencing financial difficulties – including those who are most vulnerable.
Beyond the existing state and federal energy assistance programs and moratorium on winter service disconnections, NIPSCO provides credit arrangements, budget plans and reduced deposits for eligible customers, including:
• Payment Agreements: NIPSCO has expanded its payment plan agreements to offer its most flexible payment plans to customers that need financial support, including three-, six- and 12-month plans. Customers can learn more and enroll at NIPSCO.com/PaymentPlans.
• LIHEAP Program: LIHEAP support is available to households that are at or below 60% of State Median Income (SMI). The program opens on Oct. 2 for online and mail-in applications. Customers can learn more and find out if they qualify at eap.ihcda.in.gov or by calling 211.
• Township Trustees: A limited amount of energy assistance funds are available through local township trustee offices. NIPSCO customers are encouraged to contact their local township trustee to see what help may be available.
• The Emergency Rental Assistance Program (IERA): Provides up to 18 months of rental and utility assistance for renters. Additional information can be found at https://www.in.gov/ihcda/homeowners-and-renters/rental-assistance/.
As always, any customers experiencing difficulty with paying their bill – regardless of their income – are encouraged to contact NIPSCO’s customer care center Monday through Friday between 7 a.m. and 7 p.m. CT at 1-800-464-7726 to determine what help might be available to them. For more information on bill assistance, customers can visit NIPSCO.com/FinancialSupport.
In addition to offering a variety of payment assistance options, NIPSCO offers a number of energy efficiency programs to help lower energy usage and bills. Visit NIPSCO.com/Save for more information on available programs and other ways to save.
Learn more about NIPSCO’s rates at NIPSCO.com/2023electricrates.