Facts about NIPSCO’s 2022 gas base rates
Customers depend on a reliable and safe supply of natural gas at a fair price. That’s why we work hard to continually improve service, mitigate risks and manage costs.
NIPSCO’s natural gas base rates were last approved in 2018. Meanwhile, our costs to provide service to 850,000 customers across 32 counties have increased. We’re continuing to upgrade our services and infrastructure today so we’re prepared to safely and effectively meet tomorrow’s energy needs.
Because of these changes, on September 29, 2021, NIPSCO submitted a request with the Indiana Utility Regulatory Commission (IURC) to increase its natural gas rates that underwent a nearly year-long, thorough regulatory review process, including public input. On July 27, 2022, the IURC provided a decision approving NIPSCO to adjust its natural gas rates that will be phased in over a two-step process in September 2022 and March 2023.
Frequently asked questions
Why now? Why do rates need to increase?
The goal of this adjustment, that underwent a nearly year-long review process, was to strike the right balance of cost and service in order to continue delivering on our commitments to customers.
NIPSCO’s last change in natural gas rates was in 2018. NIPSCO 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).
In order to continue to deliver a safe, reliable supply of natural gas service, we must continue to invest in our system to upgrade aging infrastructure, just as investments are made in bridges, roads and other infrastructure in our cities, towns and communities. Costs to implement and complete these upgrades have increased.
NIPSCO is dedicated to continuously improving the safety of its operations. We see more opportunities to put safeguards and checks in place that provide high levels of safety. These additional safeguards and checks come with an increase in costs.
Thank you for your response.
Where can I find out more information?
Did customers have a voice in the review process?
Yes, customers had a voice in the process in multiple ways – through written comments to the Indiana Office of Utility Consumer Counselor, at a public field hearing and via various consumer advocacy organizations that participate in the process. That input was received and factored into the lower than requested approved rates.
Thank you for your response.
What is the monthly customer charge?
The monthly customer charge will change from $13.83 to approximately $16.33, providing for recovery of a portion of the Company’s fixed costs, which are incurred solely because of the existence of customers connected to the system (ex. 24/7 emergency response, call center operations, customer billing systems, etc.). Typically, the amount of gas that a residential customer uses does not have any measurable impact on the cost of providing service to the customer. For this reason, the utility’s distribution costs are considered fixed costs.
Thank you for your response.
Does NIPSCO offer any bill payment assistance for those who need it most?
Yes. Any increase in a customer’s bill matters. It is NIPSCO’s goal to work with customers to identify solutions. NIPSCO offers a variety of options for customers who are experiencing difficulty with their bill—including low-income customers.
- Flexible Payment Plans: NIPSCO offers flexible payment plans to customers that need financial support, including a three-month option, a six-month option introduced during the pandemic and a 12-month option for eligible LIHEAP customers. Customers can learn more and enroll at NIPSCO.com/PaymentPlans.
- Indiana’s Emergency Rental Assistance (IERA) Program: Eligible renters can get help paying your natural gas bill through IERA. Applications are being accepted now. Funds are limited. For more information and to apply, visit: https://www.in.gov/ihcda/homeowners-and-renters/rental-assistance/.
- 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.
- 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.
Thank you for your response.
What does a regulatory review of natural gas base rates mean?
Unlike most companies, which can change the price of their product/service without outside approval, regulated energy providers—like NIPSCO—must submit a detailed request to change their rates. The request includes evidence to support the change and demonstrate how it will benefit customers.
This process is called a rate case, and NIPSCO must receive approval from the IURC. Ultimately, the goal of NIPSCO’s proposal, under the nearly year-long review process, is to strike the right balance of cost and service in order to continue delivering on its commitments to customers.
Customers have a voice in the process through public field hearings and the ability to submit comments through the Indiana Office of Utility Consumer Counselor.
Thank you for your response.
What incentives does NIPSCO offer for customers to be more energy efficient?
NIPSCO offers a variety of programs and incentives designed to help all customers be more energy efficient, including free in-home energy assessments, equipment rebates, weatherization and more. Customers can access energy efficiency information, tips, rebates and programs at NIPSCO.com/Save.
Thank you for your response.
How and when would natural gas bills be affected?
NIPSCO anticipates that, with the newly approved rates, it will remain among the lowest-cost providers.
New rates will be phased in over a two-step process, with the first phase taking effect September 1, 2022.
An average residential customer will see an expected overall increase of approximately $6 per month, or 10 percent following the two-step change – which is lower than the previously proposed increase request of 17 percent.
This change also revises the customer charge to approximately $16.33, which is a reduction from the $24.50 proposed
Thank you for your response.