2023-24 Rate Case
Northern Indiana Public Service Company (NIPSCO) requested a base rate increase for its natural gas utility, which provides service in 32 counties. The utility initially sought to raise annual revenues by nearly $161.9 million.
UPDATE 7-31-24: The Commission issued a final order on July 31, 2024 approving the settlement agreement.
All publicly filed documents in this case (Cause No. 45967) are available on the IURC's website.
Electric rates and services are not at issue in this case.
- Utility Testimony (Initial Request)
- Public Comments
Consumers who wish to submit written comments for the case record may do so via the OUCC’s online submission form, by email at uccinfo@oucc.in.gov, or by mail at:
Public Comments
Indiana Office of Utility Consumer Counselor (OUCC)
115 W. Washington St., Suite 1500 SOUTH
Indianapolis, IN 46204The OUCC needs to receive all written consumer comments by Jan. 27, 2024.
The IURC has scheduled a public field hearing in Fort Wayne on Jan. 8, 2024. The hearing will be held at Purdue University Fort Wayne in the Walb Student Union Classic Ballroom (2101 E. Coliseum Blvd.) and will begin at 6 PM. An additional hearing is scheduled for Tuesday, Jan. 23, 2024, in Hammond at Purdue University Northwest, Student Union and Library Building – Alumni Hall (2233 173rd St.).
The OUCC issued media releases on Dec. 20, 2023 and Jan. 11, 2024 with more information.
- OUCC Testimony
- Settlement Agreement
A settlement agreement filed on Mar. 20, 2024 would establish an increase of $120.9 million, a $41 million reduction from the utility's initial request. The OUCC filed testimony supporting the agreement on Mar. 25, 2024. All formal parties to the case have either signed the agreement or agreed to not oppose it.
Current Rates
NIPSCO's natural gas utility provides service in 32 counties. To compare average natural gas bills, see the IURC's monthly residential surveys.
- 2021-2022 Rate Case (Current Base Rates)
Base rates cover "non-gas" costs for a utility, including operational, maintenance, and capital costs. A natural gas utility is allowed to earn a return on this portion of the bill.
New natural gas base rates and charges for NIPSCO received IURC approval in July 2022.
- The Commission's July 27, 2022 order approved a settlement agreement among the OUCC, industrial customers, and NIPSCO. Additional formal parties to the case did not oppose the agreement.
- All documents filed in this case, including testimony supporting the agreement, are available through the IURC's electronic document system.
- The agreement will allow for an increase of approximately $71.8 million, a decrease of $37.9 million from the utility's request.
- The utility's initial request would have increased overall annual revenues by $109.7 million (per corrections filed on Jan. 10, 2022). It would have also raised the monthly residential customer service charge from $14.00 to $24.50, and raised the monthly small general service customer charge (for small commercial customers) from $53.00 to $80.00.
- In testimony filed on Jan. 20, 2022, the OUCC recommended limiting the increase to $56.4 million. The recommendations would have set the monthly residential customer service charge at $15.75, with a $59.75 charge for small commercial customers.
- As approved, the agreement will set the monthly residential customer service charge at $16.50, with a $67.00 charge for small commercial customers.
- The OUCC issued a Jan. 3, 2022 news release to invite public comments, and filed approximately 1,200 pages of consumer comments for the record in this case. An IURC public field hearing was held in Fort Wayne on Jan. 13, 2022.
- The cause number is 45621. Electric rates were not at issue in this case. For an overview of rate case steps, please see the OUCC's timeline.
OUCC Testimony (January 2022):
- Grosskopf
- Viefhaus
- Poole
- Smith
- Courter
- Garrett
- Krieger
- Consumer Comments - Volume 1
- Consumer Comments - Volume 2
The utility filed its petition and the following testimony in September 2021. NIPSCO testimony includes:
- Hooper
- Whitehead
- Newcomb
- Dousias
- Camp
- Bly
- Gode
- Baryenbruch
- Sylvester
- Smith
- Campbell
- Cartella
- Spanos
- Trapp
- Rea
- Bartos
- Amen
- Siegler
NIPSCO's previous gas base rates were set in September 2018. In the rate case order, the IURC approved a settlement agreement among the OUCC, industrial customers, and NIPSCO. The OUCC's Sept. 20, 2018 news release offers an overview of the agreement.
- Gas Costs
Natural gas utilities buy gas for their customers in a competitive wholesale market. Indiana law allows utilities to adjust rates every three months to recover changes in those costs, which can go up or down. These costs comprise a significant portion of a residential bill and are recovered through the Gas Cost Adjustment (GCA) process.
- Utilities may recover wholesale gas costs on a dollar-for-dollar basis but may not profit on them.
- Before adjusting rates to reflect the costs, a utility must demonstrate that it has shopped prudently in the competitive market.
- Each GCA filing requires OUCC review and IURC approval.
NIPSCO's most recent adjustment (Cause No. 43629 GCA-71) will affect bills for September, October, November 2024.
- Trackers
State law allows natural gas and electric utilities to seek IURC approval of 5-to-7-year plans for infrastructure improvements. If a plan is approved, the utility may then seek incremental rate increases as the projects proceed. Most costs are recovered through the Transmission, Distribution, and Storage System Improvement Charge (TDSIC). NIPSCO's current gas TDSIC plan received Commission approval in July 2020.
NIPSCO and other gas utilities may also recover federally required pipeline safety costs through a rate tracker. NIPSCO's most recent Federally Mandated Cost Adjustment was approved in December 2021. In Cause No. 45703, NIPSCO received Commission approval of a new, 5-year plan for pipeline safety compliance.
7-31-2024