|
Steelworkers, CAC agree, NIPSCO electric rates are too high Many NIPSCO electric customers remember how the CAC spent the 1980’s fighting NIPSCO’s attempts to gouge them for the costs of the Baily nuclear power plant. CAC led efforts to keep NIPSCO from charging in advance for Baily’s construction costs. Then, when NIPSCO canceled Baily but charged customers for this failed project anyway, CAC filed lawsuits which forced NIPSCO to return $81 million to ratepayers. NIPSCO continues to charge electric rates which are 51 percent higher than the state average, however. This means an "average" Indiana ratepayer spends $65.46 for 1000 kilowatt-hours of electricity, but a NIPSCO customer spends $95.22. Where is this money going? NIPSCO is not using it to invest in its workforce. Between 1992 and 1996, NIPSCO reduced it’s workforce by 21.3 percent and reduced maintenance expenditures by 17.3 percent. Both CAC and the United Steelworkers who represent NIPSCO’s unionized workforce say customers are getting charged more money for less and poorer service. NIPSCO is in the midst of a corporate buying spree, purchasing regulated utilities as well as dozens of unregulated subsidiaries. Regulated utilities include Kokomo Gas and Fuel, Northern Indiana Fuel and Light and Indianapolis Water Company; unregulated ventures include financial services, power marketing, a company which incinerates waste tires, and the Sand Creek Country Club, a sprawling two-square-mile development which includes a golf course surrounded by luxury homes in Chesterton. Although NIPSCO customers are financing these investments, it is unlikely management will share their profits by lowering rates. They certainly haven’t done that in the past. Between 1992 and 1996, NIPSCO Industries’ common shareholders have enjoyed a total return on their investment of 79 percent, more than double the 34 percent total return provided by the utilities which make up the Dow Jones Utilities Average. During the same time period, NIPSCO CEO Gary Neale’s pay package doubled, from $617,954 to $1,279,748. CAC is asking supporters across Indiana to call the Indiana Utility Regulatory Commission at (800) 851-4268 or write them at IURC, 302 W. Washington, Suite E302, Indianapolis, IN 46204. Tell the IURC to investigate NIPSCO’s high rates, declining service, and use of captive customers to finance speculative ventures. If you have a personal story dealing with high rates or poor service, be sure to include it in your contact with the IURC. More on NIPSCO
| CAC Home Page
| Table of Contents | Issues Index |
|