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. 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.
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.
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 percent), 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 percent.
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 today’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.