On Wednesday, NIPSCO submitted a request with the Indiana Utility Regulatory Commission (IURC) to adjust its base natural gas rates. NIPSCO sys the proposed increase will undergo a thorough regulatory review process, including the opportunity for public input. If approved by the IURC, it is anticipated that the new gas rates would be phased in over two steps. The first phase would go into effect no earlier than September 1, 2022.
“Maintaining a safe system and ensuring the safety of our customers and communities is ingrained in all facets of the work we do now and it will continue to drive how we operate in the future,” said Mike Hooper, NIPSCO’s President and Chief Operating Officer. “This request will allow for essential resources and investments to sustain the integrity of our infrastructure while balancing costs and improvements to better serve our customers.”
NIPSCO’s natural gas base rates were most recently approved in 2018. Since that time, NIPSCO says it has invested approximately $885 million in system upgrades, technology improvements, and pipeline safety and reliability initiatives to be completed through the end of 2022, with plans for future, continued investments. The company says it has been the lowest natural gas cost provider in Indiana on average over the last 10 years according to IURC comparisons (Source: Indiana Utility Regulatory Commission’s 2021 Residential Bill Survey) and among the lowest in the nation.
NIPSCO’s goals are to ensure its 850,000 industrial, commercial and residential gas customers across the 32 counties it serves receive a safe, reliable supply of natural gas, and that the company remains in compliance with state and federal safety requirements.
As a regulated energy provider, NIPSCO cannot change any rates and charges to its customers without the approval of the IURC.
Based on NIPSCO’s proposal, a residential customer using 70 therms per month, paying approximately $55 today, would see an overall increase of approximately $9 per month, or 17 percent. This estimated change includes a proposed increase in the monthly customer charge from $14 to $24.50.
This proposed increase in the customer charge will lead to greater bill stability, which benefits customers by reducing bill fluctuation between high-usage and low-usage periods, especially the winter heating months.
New rates are proposed to be phased in over two steps. The first phase rates would not go into effect earlier than September 1, 2022. Benefits of the increased customer charge would include less volatility in customer monthly bills, reduced winter bills for high use customers and a more effective way to recover fixed costs. Actual projected bill impacts may vary by customer, depending on usage and future potential changes in market prices for natural gas. The total overall requested increase would be about $115 million annually.
Learn more about NIPSCO’s proposal at NIPSCO.com/2022gasrates.
Customers experiencing difficulty with their bill—regardless of their income—are encouraged to contact our Customer Care Center Monday through Friday between 7 a.m. and 7 p.m. CT at 1-800-464-7726 to determine what help might be available to them. For more information on bill assistance, customers can visit: NIPSCO.com/FinancialSupport.
In addition to offering a variety of payment assistance options, NIPSCO offers a number of energy-efficiency programs to help lower energy usage and bills. Visit NIPSCO.com/Save for more information on available programs and other ways to save.