Agreement Reached In NIPSCO's Proposal To Modify Electric Rates
Posted
Staff Report-
INDIANAPOLIS – Northern Indiana Public Service Company 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, NIPSCO’s industrial customers, the Indiana Municipal Utility Group and the United Steelworkers, with no opposition from LaPorte County. The proposed agreement is subject to Indiana Utility Regulatory Commission review and approval, and new rates are not expected to take effect until the second half of 2016, NIPSCO said in a release Friday. The settlement will limit the base rate increase to residential customers to 5.4 percent, down from the 11 percent proposal in NIPSCO’s original October request. Included within the overall bill impact will be a 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, the release states. “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.” NIPSCO says the settlement also includes a platform for continued investments and service improvements for customers; offers of a new LED streetlight rate, which supports a new LED streetlight conversion program for municipalities awaiting approval in NIPSCO’s infrastructure modernization plan; and expands interruptible program for industrial customers For more information on NIPSCO’s proposal, visit NIPSCO.com/rates. Natural gas rates are not at issue in this case, according to the release.
