Continuing to Improve Your Service

Facts about NIPSCO’s Gas Regulatory Rate Review

Affordable rates and quality service are important to customers. It’s been more than 25 years since NIPSCO’s natural gas base rates have increased and in 2010, a review led to a slight decrease.

Since that time, NIPSCO has regularly been the lowest cost provider in Indiana—and among the lowest providers in the nation.

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 increase and demonstrate how it benefits customers.

The process—referred to as a regulatory rate review or rate case—must be decided by the Indiana Utility Regulatory Commission (IURC). The 10–12 month review process includes public input and involvement.

Limiting the Impact to Customers

Our proposal works to strike the right balance of cost and service, so that we can provide the level of service customers expect. We anticipate remaining among the lowest-cost providers even with newly proposed rates.

As a result of the federal tax reform, we announced that the average NIPSCO natural gas customer would pay nearly $2 less per month, following the Commissions’ decision in the company’s natural gas rate proposal, which is expected in the second half of 2018. The average natural gas residential customer using 69 therms per month and paying $50 per month is projected to see their bill go to $58.10 per month, subject to IURC approval, rather than $59.80 as originally proposed.

Delivering Value and Improved Service

Service and value to customers has continued to improve and NIPSCO’s request seeks to further its commitment.

  • Serving as Indiana’s lowest natural gas cost provider and among the lowest in the nation
  • Providing faster response times to emergency customer calls
  • Upgrading and replacing old, vintage underground pipes with more modern materials
  • Being among industry leaders for fewest leaks on underground lines
  • Reduced service appointment windows
  • Helping to eliminate estimated bills by replacing nearly all customer meters with more advanced meters
  • Offering programs to help customers save energy and become more energy efficient
  • Continuing to provide bill payment assistance for low-income customers
  • Continued use of smart technologies to inspect and detect abnormal pipeline conditions
  • Indiana’s only company that allows customers the option to choose their natural gas provider

What costs are changing?

NIPSCO works hard to continually improve service while effectively managing all costs to serve 820,000 customers across 32 northern Indiana counties.

Some of the cost increases and future changes include:

  • More than $400 million in system upgrades, technology improvements and other investments to increase pipeline safety and reliability, with plans for future continued investments
  • Increased costs to comply with state and federal safety standards
  • Residential monthly customer charge estimated to increase to reflect more of the actual fixed costs to serve customers regardless of usage
  • Increased labor and material costs associated with infrastructures and service improvements