Merrillville-based Northern Indiana Public Service Co. will adjust its gas rates beginning in August.

The new rates will be phased in over two steps to spread out the changes to customers.

“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,” said Vince Parisi, NIPSCO president and COO, in a press release.

The new rates will allow for system upgrades, infrastructure modernization and improvements. Federal pipeline safety requirements have increased since NIPSCO’s last rate change. The new rates will help meet the costs associated with the increased requirements.

The decision to approve the rate change is the result of an almost yearlong review process. NIPSCO’s electric rates are not affected.

The change in natural gas base rates is related to the costs associated with delivering natural gas to customers. The cost of securing natural gas is one of the largest determining factors of gas customers’ bills.

The average residential natural gas customer using 72 therms per month will see an overall increase of about $5 a month. The change will be phased in over two steps beginning in August and in the beginning of 2025.

NIPSCO’s customer assistance program, which provides discounts to customers in the Low Income Home Energy Assistance Program, will increase the reduction range to 15 to 32 percent, providing more assistance to customers who need it most.

NIPSCO, which has served northern Indiana for over 100 years, serves about 859,000 natural gas and 483,000 electric customers across 32 counties. NIPSCO is one of NiSource’s six utility companies.