In March 2014, the Office of Utility Consumer Counselor (OUCC) asked the Indiana Utility Regulatory Commission (IURC) to reconsider their February decision to raise electric rates 6% by 2020 to pay for electric system improvements, alleging that it will result in customers paying for equipment that is no longer in use while also paying for the new equipment that replaces it.
This case was the first filed under Senate Bill 560, which allows utilities to use trackers (surcharges) on customer bills to pay for electric system improvements that should already be a part of utilities’ base operating costs.
In April of 2014, the Indiana Utility Regulatory Commission (IURC) approved NIPSCO’s plan to raise rates by up to 10% by 2020 to pay for natural gas system improvements.
This case was the second brought under Senate Bill 560, once again asking for trackers to pay for system improvements that should be the responsibility of the utility.
NIPSCO also plans to file In September for trackers to pay for 80% of the costs of the system improvements, resulting in a 1% increase in natural gas bills next year.
We will be following these closely and post any further developments.