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IURC Approves New NIPSCO Electric Rates

By: NIPSCO Last Updated: July 18, 2016

Decision based on collaborative agreement; lower rates than originally proposed

The Indiana Utility Regulatory Commission (IURC) has approved a collaborative agreement reached in February by NIPSCO, the Indiana Office of Utility Consumer Counselor (OUCC), NIPSCO’s industrial customers, a coalition of eight northern Indiana municipalities and the United Steelworkers, with no opposition from La Porte County, regarding new base rates for electric customers – the first such change since 2011.

NIPSCO has highlighted the need for updated electric rates to reflect the increase in costs to produce and distribute power to customers, and investments for continued service improvements.

Today’s decision approves an agreement that results in a bill adjustment that is approximately half of NIPSCO’s original request last year, which will go into effect on NIPSCO’s October 2016 bills.

The newly approved rates would result in a $5.70 monthly increase, or approximately 6 percent, for a typical residential electric bill, based on a usage of 700 kWh a month.

The change for individual commercial and industrial customers will vary depending on their usage patterns, but on average, overall rates for commercial and smaller industrial customers would increase approximately 5 to 6 percent when compared with today’s rates.

“Customers want to be certain they’re receiving quality service at a price that’s fair,” said Violet Sistovaris, NIPSCO executive vice president. “We believe these newly approved electric rates represent a balanced outcome that allow us to continue improving the level of service to our customers.”

"The agreement approved today provides a fair resolution for NIPSCO's residential and commercial customers, along with NIPSCO's industrial customers that are crucial to Northwest Indiana's economy," said Indiana Utility Consumer Counselor David Stippler. "The OUCC and additional parties negotiated more than $54 million in consumer benefits, reducing the rate impact while ensuring that the utility has the revenues necessary to provide safe and reliable service to all of its electric customers."

Customer Benefits From the Outcome

The IURC’s decision follows a nearly 10-month review process, which includes direct input from customers and a range of consumer groups. This comprehensive and balanced resolution provides several benefits to customers, including:

Improving Customer Service

In recent years, NIPSCO has invested in a range of improvements that directly benefit customers, including:

Examples of the changes in costs since NIPSCO’s last case include:

Natural gas rates are not at issue in this case.

Customers with questions regarding NIPSCO’s new electric rates may visit www.NIPSCO.com/rates for more information.