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NIPSCO Gas Cost Hearing Set Feb. 22 In Goshen

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INDIANAPOLIS - The Indiana Office of Utility Consumer Counselor and Indiana Utility Regulatory Commission have scheduled two meetings Feb. 22 regarding the state's annual natural gas cost adjustment proceeding for Northern Indiana Public Service Co. Both events will be at Goshen Middle School, 1216 S. Indiana St., Goshen.

Commissioners are not permitted to answer consumer questions during the formal hearing, and testimony will strictly be limited to natural gas cost issues. NIPSCO's base distribution rates for natural gas are frozen at least until 2010 under an approved settlement agreement in a separate proceeding. Electric rates and deposit, disconnection and reconnection issues also are beyond the scope of this case and will not be affected by the outcome.

From 5:30 to 6 p.m., the OUCC will conduct an information meeting and answer consumer questions regarding the case. In addition to answering consumer questions during the half-hour meeting, OUCC staff will discuss the regulatory process and describe public field hearing procedures.

At 6 p.m., immediately following the OUCC meeting, the IURC will conduct a formal public field hearing to accept oral and written consumer testimony regarding NIPSCO's pending annual GCA proceeding. The comments will become part of the record considered by the IURC in reaching its final decision.

As allowed by law, a field hearing can be requested on the yearly true-up. According to Mary Beth Fisher, director of public information with the IURC, 10 people requested the hearing in NIPSCO's GCA case. This is the first time a field hearing has been held on the true-up.

All regulated natural gas utilities in Indiana are allowed to recover wholesale gas commodity costs on a dollar-for-dollar basis, subject to regular OUCC review and IURC approval. Under a 1999 IURC order, NIPSCO is allowed to seek recovery of commodity costs on a monthly basis and annual pipeline demand, storage and gas transmission on a yearly basis. This proceeding focuses on the annual review of NIPSCO's commodity costs incurred from August 2004 through July 2005, and NIPSCO's annual pipeline demand, storage and transmission costs for the 12-month period beginning Nov. 1, 2005.

The OUCC, the representative of consumer interests in all cases before the IURC, has filed testimony based on its review of NIPSCO's procurement for the time period addressed in this proceeding. According to the agency's testimony, the utility has properly documented its gas cost claims and has complied with its legal obligations.

Consumers unable to attend the meeting and hearing may submit written comments to the OUCC before Feb. 22. Commends should include the consumer's name, address and a reference to "IURC CAUSE NO. 41338-GCA7." Comments can be submitted 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 uccinfo@oucc.IN.gov; or at the OUCC Web site www.IN.gov/OUCC/contact/index.html

For more information about submitting written comments, contact the OUCC's consumer services staff toll-free at 888-441-2494. More information on the regulatory process and other utility topics, including an overview of natural gas prices and tips for reducing energy bills, is available at www.IN.gov/OUCC or by calling the agency.