2025 Electric Base Rates

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.

View NIPSCO's Rate Case Order

Frequently asked questions

NIPSCO July 2025 Electric Rates 4 If NIPSCO’s transition to renewable energy is going to save customers money, why are you raising rates?

Jun 26, 2025, 12:07 PM

Display Question : If NIPSCO’s transition to renewable energy is going to save customers money, why are you raising rates?

Date Answered : Jun 25, 2025, 23:00 PM

Helpful count : 19

Not helpful count : 20

Sticky :

NIPSCO’s transition to a more balanced and reliable generation portfolio, which includes renewable energy, is the most cost-effective path for customers when compared with our current energy mix. While there are near-term costs associated with the approximately $2 billion in investments being made to continue to advance our plan and get the renewable projects up and running, customers are already benefiting from these existing projects and will continue to see cost savings grow when we’re able to eliminate the costs associated with running our remaining coal-fired electric-generating facilities. For example, a significant component of customer bills today is associated with the cost of purchasing coal to operate our coal-fired electric-generating facilities, estimated at $126 million annually. As those remaining facilities are retired between 2026 and 2028, those costs will be eliminated.

Additionally, NIPSCO currently sells the renewable energy credits (RECs) generated by renewable energy projects and also sells the excess power these projects generate when it is not needed to serve our customers. Customers directly benefit by having lower charges on their bills through the fuel adjustment clause component, as 100% of the revenue associated with these sales by the existing renewable projects and the sales from the upcoming renewable project additions are passed back to customers. Those savings are nearly $105.7 million since 2021 and will continue to be realized in the future. As NIPSCO moves to a full ownership model for many of our renewable projects, tax credits from these projects will begin to be realized and benefit customers beginning in 2025. These tax credit benefits are tracked and credited to customers through lower base rates and the quarterly fuel adjustment clause proceeding resulting in lower rates than would have been in place without these tax credits.

Category :

NIPSCO July 2025 Electric Rates

Related staff bios

Emergency Information

Have an emergency?