Understanding NIPSCO's 2025 Electric Eate Changes
How the Rate Case Process Works
As a regulated utility, NIPSCO can’t change electric rates on its own. Here’s how the process works:
- We submit a proposal to the Indiana Utility Regulatory Commission (IURC) explaining why a rate change is needed, including details about investments, costs and customer bill impacts.
- The IURC reviews the proposal carefully. This includes public input, expert analysis and feedback from consumer advocates and other stakeholders.
- A decision is made by the IURC after months of review. Only then can new rates go into effect.
This process ensures that any changes to your bill are fair, transparent and based on needed system investments, not just company decisions.
What's Happening?
In July 2025, NIPSCO’s newly approved electric rates are being phased in over multiple steps to spread out the changes to customers, through early 2026. These updates were approved by the IURC after a thorough review and input from consumer advocates and major businesses.
Why Are Rates Changing?
We’re investing in the future of energy to better serve our customers. By the end of 2025, NIPSCO will have invested:
- $2 billion in electric generation assets that create a more balanced energy portfolio
- $769.5 million in upgrades to power lines, technology and systems
These improvements help ensure safe and reliable service for more than 500,000 customers across northern Indiana.
What Does This Mean for You?
- The average residential customer using 672 kWh per month will see an increase of about $23 per month (16.75%)
- Rate changes will be phased in to help ease the impact
Support for Customers
NIPSCO’s 2025 electric rate case also created new ways for customers to receive support with their electric bills, including:
- A bill payment assistance program for income-qualified electric customers, available in early 2026
- No deposits required for qualifying gas and electric customers
- Waived reconnection fees for eligible electric customers
Along with these new offerings, additional bill payment assistance programs will continue to be available, and customers can learn more at NIPSCO.com/Assistance.
What's Next?
We’re committed to keeping you informed and supported. Actual bill impacts may vary depending on your usage and market conditions, and we’re here to help you understand your options and manage your energy costs. Learn more about ways you can take control of your energy usage and costs at NIPSCO.com/ConnectingYou.
Frequently asked questions
NIPSCO July 2025 Electric Rates 2 How and when will customer bills change?
Based on a review of the IURC’s decision, the average residential electric customer using 672 kilowatt hours (kwh) per month will see an overall increase of approximately $23 per month, or 16.75%. Beginning in July, the newly approved rates will be phased in over multiple steps to spread out the changes to customers, through Q1 2026. This change is lower than the initial proposed monthly increase of approximately $32 per month, or 22% based on an average residential customer using 729* kwh per month.
Actual projected bill impacts may vary by customer – including non-residential customers – depending on usage and future potential changes in market prices for commodities like coal.
*The difference in average usage amounts comes from combining the multi-family rate (Rate 615) into residential Rate 611, which results in lower average overall residential usage. As reflected in NIPSCO’s settlement testimony, the settlement results in a 14.75% base rate revenue increase for residential Rate 511/611.
- NIPSCO July 2025 Electric Rates