Northern Indiana Public Service Company LLC (NIPSCO), a subsidiary of NiSource Inc. (NYSE: NI), has made a request with the Indiana Utility Regulatory Commission (IURC) to adjust its electric rates.
The request is largely driven by continued investments in renewable energy to support the company’s ongoing electric generation transition, along with infrastructure upgrades to provide enhanced safety and reliability. As demonstrated by the company’s Integrated Resource Planning (IRP) process in 2018 and 2021, making these investments now is the most cost-effective approach for customers over the long term. While the proposed increase was filed with the IURC Thursday, it will undergo a thorough regulatory review process, which includes the opportunity for the public to provide input.
Any changes to a customer’s bill that are ultimately approved by the IURC will be phased in over time beginning in late 2025 and into 2026, versus a one-time increase.
Based on NIPSCO’s proposal, an average residential electric customer, as a result of this case, would see an overall increase of approximately $32 per month, or approximately 22% above projected bills at the time of implementation. The change, if approved, would begin to occur by Sept. 1, 2025, with the remaining changes applied by March 2026. Part of this request includes a proposal for a new bill payment assistance program for income-qualified customers, with a portion funded by NIPSCO.
Additionally, NIPSCO has proposed a new multifamily housing rate structure that, if approved, would allow for a 9%, or an approximately $10 decrease per month, to an average multifamily housing customer using 444 kwh per month compared to the standard residential rate.
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. Actual projected bill impacts may vary by customer – including nonresidential customers – depending on usage and future potential changes in market prices.
The transition to renewable energy generation is significant, representing approximately $2 billion in new investments through 2025. The company is also investing approximately $769.5 million for electric transmission and distribution system upgrades, technology improvements, and safety and reliability initiatives to be completed by the end of 2025, with plans for similar investments into the future. Along with those investments, NIPSCO is working in a cost-effective manner to help keep costs lower for customers over the long term.
By moving to a full ownership model for many of its renewable energy and energy storage projects, NIPSCO will claim tax credits and pass the benefits of those tax credits on to its customers. Customers will realize the benefits of these tax credits for a 10-year period starting in 2025.
