Newly Approved NIPSCO Gas Rates To Take Effect Beginning In August
July 31, 2024 at 5:12 p.m.
MERRILLVILLE — Northern Indiana Public Service Company LLC (NIPSCO) received a decision from the Indiana Utility Regulatory Commission (IURC) to adjust its gas rates, effective August 2024.
Beginning in August, the newly approved rates will be phased in over two steps to spread out the changes to customers, with the remaining changes applied in 2025, according to a news release from NIPSCO.
The release states, “Just as investments are made in bridges, roads and other infrastructure in cities, towns and communities, we must also make investments to put safeguards and checks in place that provide high levels of safety. These additional safeguards and checks come with an increase in costs. Federal pipeline safety requirements — that are beneficial for the safe operation and integrity of our gas system — have also increased since NIPSCO’s last base rate case. There are costs associated with satisfying these increased requirements.”
“Customers expect safe, dependable natural gas service provided in the most cost-efficient manner possible,” said Vince Parisi, NIPSCO president and chief operating officer. “This decision balances the need for adjusted rates and supports the continuous service and infrastructure improvements required to replace older parts of our system, reducing potential risks and improving the reliability and safety of our natural gas system.”
The newly approved rates will also allow for system upgrades to support economic development and job creation, along with infrastructure modernization and improvements that will directly benefit customers and communities – including an estimated $1.1 billion in investments through the end of 2024, according to the release.
As a regulated energy provider, NIPSCO cannot change any rates or charges to its customers without the approval of the IURC. NIPSCO’s electric rates are not affected by this request.
The change in natural gas base rates is related to the costs associated with delivering natural gas to customers and comprises a smaller portion of the bill. NIPSCO does not mark up the price it pays for securing the natural gas used by homes and businesses, and customers pay the same dollar-for-dollar cost NIPSCO pays. The cost of securing natural gas is one of the largest determining factors of gas customers’ bills, the release states.
The IURC decision follows a nearly year-long, extensive review process, including public input and a collaborative agreement with the Indiana Office of Utility Consumer Counselor, the NIPSCO Industrial Group, Citizens Action Coalition, Direct Energy Business Marketing and Steel Dynamics Inc.
Based on a review of the IURC’s decision, the average residential natural gas customer using 72 therms per month will see an overall increase of approximately $5 per month (or 7.1%), with the change being phased in over two steps beginning in August 2024 and in quarter one 2025, no later than March 1, 2025. This change is lower than the initial proposed monthly increase of approximately $8 per month, or 10.6%.
Actual projected bill impacts may vary by customer – including nonresidential customers – depending on usage and future potential changes in market prices.
Notably, the settling parties agreed to an increase in NIPSCO’s contribution to the Universal Service Program, or the company’s Customer Assistance for Residential Energy Discount program, which provides additional discounts to customers enrolled in the Low Income Home Energy Assistance Program. NIPSCO’s contribution with this settlement will increase the reduction range from 11-26% to 15-32% providing more assistance to customers who need it most, the release says.
As always, any customer experiencing difficulty with paying their bill – regardless of their income – is 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 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/2024gasrates.
MERRILLVILLE — Northern Indiana Public Service Company LLC (NIPSCO) received a decision from the Indiana Utility Regulatory Commission (IURC) to adjust its gas rates, effective August 2024.
Beginning in August, the newly approved rates will be phased in over two steps to spread out the changes to customers, with the remaining changes applied in 2025, according to a news release from NIPSCO.
The release states, “Just as investments are made in bridges, roads and other infrastructure in cities, towns and communities, we must also make investments to put safeguards and checks in place that provide high levels of safety. These additional safeguards and checks come with an increase in costs. Federal pipeline safety requirements — that are beneficial for the safe operation and integrity of our gas system — have also increased since NIPSCO’s last base rate case. There are costs associated with satisfying these increased requirements.”
“Customers expect safe, dependable natural gas service provided in the most cost-efficient manner possible,” said Vince Parisi, NIPSCO president and chief operating officer. “This decision balances the need for adjusted rates and supports the continuous service and infrastructure improvements required to replace older parts of our system, reducing potential risks and improving the reliability and safety of our natural gas system.”
The newly approved rates will also allow for system upgrades to support economic development and job creation, along with infrastructure modernization and improvements that will directly benefit customers and communities – including an estimated $1.1 billion in investments through the end of 2024, according to the release.
As a regulated energy provider, NIPSCO cannot change any rates or charges to its customers without the approval of the IURC. NIPSCO’s electric rates are not affected by this request.
The change in natural gas base rates is related to the costs associated with delivering natural gas to customers and comprises a smaller portion of the bill. NIPSCO does not mark up the price it pays for securing the natural gas used by homes and businesses, and customers pay the same dollar-for-dollar cost NIPSCO pays. The cost of securing natural gas is one of the largest determining factors of gas customers’ bills, the release states.
The IURC decision follows a nearly year-long, extensive review process, including public input and a collaborative agreement with the Indiana Office of Utility Consumer Counselor, the NIPSCO Industrial Group, Citizens Action Coalition, Direct Energy Business Marketing and Steel Dynamics Inc.
Based on a review of the IURC’s decision, the average residential natural gas customer using 72 therms per month will see an overall increase of approximately $5 per month (or 7.1%), with the change being phased in over two steps beginning in August 2024 and in quarter one 2025, no later than March 1, 2025. This change is lower than the initial proposed monthly increase of approximately $8 per month, or 10.6%.
Actual projected bill impacts may vary by customer – including nonresidential customers – depending on usage and future potential changes in market prices.
Notably, the settling parties agreed to an increase in NIPSCO’s contribution to the Universal Service Program, or the company’s Customer Assistance for Residential Energy Discount program, which provides additional discounts to customers enrolled in the Low Income Home Energy Assistance Program. NIPSCO’s contribution with this settlement will increase the reduction range from 11-26% to 15-32% providing more assistance to customers who need it most, the release says.
As always, any customer experiencing difficulty with paying their bill – regardless of their income – is 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 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/2024gasrates.