Northern Indiana Public Service Company (NIPSCO) natural gas customers will see a lower rate increase than originally proposed in the company’s pending regulatory rate review, as a result of a collaborative agreement reached with the Indiana Office of Utility Consumer Counselor (OUCC), industrial customers and the NIPSCO Gas Supplier Group.
The proposed agreement is subject to Indiana Utility Regulatory Commission (IURC) review and approval, and new rates would be phased in over two years with the first phase occurring in the fourth quarter of 2018.
“This is a great outcome for our customers, our communities and the company as we continue to focus on increasing value and service across each of those areas,” said NIPSCO President Violet Sistovaris. “It also provides a platform for continued investments in public safety and other programs to better serve customers now and into the future.”
What to expect on a customer’s bill
Based on the settlement, if approved as filed, an average residential customer would see an overall increase of approximately $8 per month instead of $10 as in the original proposal.
Included within the overall bill change will be an increase in the fixed monthly customer charge from $11 to $14, which is also lower than what was originally proposed.
New rates will also include the lower tax rate from federal tax reform.
The change for individual commercial and industrial customers will vary depending on usage patterns, but on average, rates for overall commercial and smaller industrial customers would also increase less than the original proposal.
It has been more than 25 years since NIPSCO’s base natural gas rates have increased, and in 2010, a regulatory review led to a slight decrease. Since that time, NIPSCO has repeatedly been the lowest-cost provider in Indiana – and among the lowest-cost providers in the nation – while improving service, reliability and safety to customers.
NIPSCO anticipates that, with the newly proposed rates, it will remain among the lowest-cost providers.