NIPSCO will raise rates on electricity by about $12 a month for residential customers beginning in August.
After almost a yearlong review, the Indiana Office of Utility Consumer Counselor and the NIPSCO Industrial Group agreed Aug. 2 to a lower rate increase than originally proposed. The initial proposal called for a $19 a month increase for customers using 668 kilowatt hours a month.
The about 10% increase will be phased in starting in August and continue into 2024.
“Customers expect safe, dependable electric service at the lowest cost possible,” said Mike Hooper, NIPSCO president, in a press release. “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.”
NIPSCO is transitioning to more renewable sources of energy. It already has invested more than $800 million in projects that will be completed by the end of this year. The company's goal is to retire its remaining coal-fired plants by 2028.
Since 2021, customers have received more than $60 million in credits from excess power.
The new rates also will support $700 million for electric transmission and distribution infrastructure upgrades, technology improvements, and safety and reliability projects that are scheduled for completion by the end of this year.
The IURC's decision also includes a provision that customers only pay costs as NIPSCO incurs them. The decision does not affect natural gas rates.
Actual rates will vary by customer, depending on usage and changes in the market. The company applied for the rate increase on Sept. 19, 2022.
NIPSCO last requested a rate increase in 2018. It has 483,000 customers in Northern Indiana.
NIPSCO also reported that second quarter income dropped to $39.9 million from last year's $53.2 million, according to a press release.