Newly Approved NIPSCO Gas Rates to Take Effect Beginning August 2024

Press Release, NIPSCO:

Northern Indiana Public Service Company LLC (NIPSCO) received a decision from the Indiana Utility Regulatory Commission (IURC) to adjust its gas rates, effective August 2024. Beginning in August, the newly approved rates will be phased in over two steps to spread out the changes to customers, with the remaining changes applied in 2025.

Just as investments are made in bridges, roads and other infrastructure in our cities, towns and communities, we must also make investments to put safeguards and checks in place that provide high levels of safety. These additional safeguards and checks come with an increase in costs. Federal pipeline safety requirements—that are beneficial for the safe operation and integrity of our gas system—have also increased since NIPSCO’s last base rate case. There are costs associated with satisfying these increased requirements.

“Customers expect safe, dependable natural gas service provided in the most cost-efficient manner possible,” said Vince Parisi, NIPSCO President and Chief Operating Officer. “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.”

The newly approved rates will also allow for system upgrades to support economic development and job creation, along with infrastructure modernization and improvements that will directly benefit customers and communities – including an estimated $1.1 billion in investments through the end of 2024.

How will residential customer bills change? 

As a regulated energy provider, NIPSCO cannot change any rates or charges to its customers without the approval of the IURC. NIPSCO’s electric rates are not affected by this request.

The change in natural gas base rates is related to the costs associated with delivering natural gas to customers and comprises a smaller portion of the bill. NIPSCO does not mark up the price it pays for securing the natural gas used by homes and businesses, and customers pay the same dollar-for-dollar cost NIPSCO pays. The cost of securing natural gas is one of the largest determining factors of gas customers’ bills.

The IURC decision follows a nearly year-long, extensive review process, including public input and a collaborative agreement with the Indiana Office of Utility Consumer Counselor, the NIPSCO Industrial Group, Citizens Action Coalition, Direct Energy Business Marketing and Steel Dynamics Inc.

Based on a review of the IURC’s decision, the average residential natural gas customer using 72 therms per month will see an overall increase of approximately $5 per month (or 7.1 percent), with the change being phased in over two steps beginning in August 2024 and in Q1 2025, no later than March 1, 2025. This change is lower than the initial proposed monthly increase of approximately $8 per month, or 10.6 percent.

Actual projected bill impacts may vary by customer – including nonresidential customers – depending on usage and future potential changes in market prices.

Notably, the settling parties agreed to an increase in NIPSCO’s contribution to the Universal Service Program, or the company’s Customer Assistance for Residential Energy Discount program, which provides additional discounts to customers enrolled in the Low Income Home Energy Assistance Program. NIPSCO’s contribution with this settlement will increase the reduction range from 11-26 percent to 15-32 percent providing more assistance to customers who need it most.

Improved service to customers

Service to customers has continued to improve, and NIPSCO has furthered its commitment to customers in several ways in recent years, such as with:

• Safety enhancements via smart technologies, like Picarro, to allow for better potential leak detection and pipe inspections.
• Natural gas infrastructure modernization and upgrades including providing critical gas service to support industrial customers.
• Projects to support state and local economic retention, growth and job creation, including building out natural gas pipelines to support new business investment in our service area, creating new assessed value and jobs in local communities.
• Refined and expanded customer service, energy-efficiency and energy assistance programs, including bill payment and assistance programs for seniors, active-duty military and veterans.

• Low Income Home Energy Assistance Program (LIHEAP): LIHEAP support is available to households that are at or below 60 percent of the state median income. The program opens on Oct. 1 for online and mail-in applications. Customers can learn more and find out if they qualify at eap.ihcda.in.gov or by calling 2-1-1.
• Customer Assistance for Residential Energy (CARE) Discount Program: In addition to the assistance available through LIHEAP, the NIPSCO CARE program is designed to provide further bill reductions to LIHEAP-approved customers. Once enrolled in LIHEAP, customers are automatically enrolled in the program. NIPSCO’s contribution with this settlement will increase the reduction range from 11-26 percent to 15-32 percent, depending on the same criteria used by the state in determining the level of assistance.
• Flexible Payment Agreements: NIPSCO has expanded its payment plan agreements to offer its most flexible payment plans to customers that need financial support, including three-, six- and 12-month plans. Customers can learn more and enroll at NIPSCO.com/PaymentPlans.
• Township Trustees: A limited amount of energy assistance funds are available through local Township Trustee offices. NIPSCO customers are encouraged to contact their local Township Trustee to see what help may be available.
• The Emergency Rental Assistance Program: This program provides up to 18 months of rental and utility assistance for renters. Additional information can be found at https://www.in.gov/ihcda/homeowners-and-renters/rental-assistance/.
• Budget Plan: The budget plan is a free service to all NIPSCO customers to help manage their monthly energy bills by spreading out gas costs over an entire year. Learn more at NIPSCO.com/budget.