NIPSCO Hit by Consumer Complaint, State Investigation On Jan 27, 2000, the Citizens Action Coalition and ten Northern Indiana Public Service Company (NIPSCO) electric customers filed a formal complaint into the "unreasonable and unsafe" rates charged to NIPSCO electric customers. Additional complaints regarding those rates were then filed on behalf of NIPSCO’s industrial customers and by the Indiana Office of Utility Consumer Counselor (OUCC), the state agency charged with protecting ratepayers. In response to those complaints, the Indiana Utility Regulatory Commission (IURC) initiated its own formal investigation into NIPSCO’s rates. As the Commission stated in its Order of May 17, 2000, "Based upon our preliminary review of the annual report filed by NIPSCO on April 17, 2000, the fact that our four year periodic review is scheduled in 2000, and that NIPSCO’s recent FAC [fuel adjustment cost] filings suggest that NIPSCO may now be over-earning, we find that a Commission review of NIPSCO’s rates is appropriate." The good news for customers is that after many years of paying the highest rates in the state, and some of the highest in the country, customers may finally see some relief. Many customers in the NIPSCO service territory are currently paying fifty percent more than other customers around the state. Residential customers should remain vigilant, and are encouraged to write state regulators with their concerns and complaints. CAC feels that significant rate reductions are due to NIPSCO electric customers, and it is important that future rates reflect the true cost of electric service and not the excessive earnings that have been financing corporate spending sprees. NIPSCO has eliminated more than twenty percent of its workforce and has greatly reduced the amount of money it spends on maintaining its system. This has significantly reduced its quality of service and has reduced the costs of operation. Meanwhile, customers have been paying the same excessive rates even while NIPSCO’s customers suffer through decreased service and while the families of NIPSCO’s workers suffer through the loss of employment. NIPSCO must improve its quality of service and maintain a reliable workforce that guarantees that customers have service they can depend on. When a storm strikes northern Indiana, utilities must be able to restore power in a reasonable amount of time. Further, other customer services such as payment sites must remain available. "You cannot continue to charge the highest rates in the state and then turn around and cut costs by eliminating the workers who maintain the utility’s service, simply so that you take the public’s money and use it for risky investments and bloated executive salaries," said Dave Menzer, Utility Campaign Organizer for CAC. WHAT YOU CAN DO:
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