NIPSCO's requested $17 monthly residential customer fixed charge will be cut to $14 (it is currently $13.50). CAC did not join the settlement agreement primarily because the low income assistance program proposed by NIPSCO was not included in the final terms of the settlement.

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As Hoosier households struggle with inflation and significant increases in the cost of energy, NIPSCO filed with the Indiana Utility Regulatory Commission (IURC) for yet another rate hike. In this request, Cause Number 45772, NIPSCO wants to raise your electric bill by 16.5% (or $20/month), in part so they can increase their profits. 

NIPSCO wants to increase their total rate base (the value of their assets) by $1.8 billion, and their annual revenue requirement (the amount they're authorized to collect from customers each year) by nearly $393.5 million, an increase of almost 26%. 

In this request, NIPSCO wants: 

• Higher profits 
• $702 million in transmission and distribution investments 
• Increased costs of vegetation management to accelerate tree-trimming cycle
• Increased costs for fuel, purchased power, and capacity
• $425 million for two new solar projects, Dunns Bridge 1 Solar and Indiana Crossroads Solar
• $393 million for two new wind projects, Indiana Crossroads Wind Farm and Rosewater Wind Farm 

NIPSCO also wants to increase your fixed monthly charge from $13.50 to $17, an increase of almost 26%! 

The fixed monthly charge is the amount you pay each month regardless of how much energy you use. Charging customers more for using less:

• Disproportionately hurts households with low- or fixed-incomes. 
• Diminishes the longstanding goal to encourage energy conservation 
• Imposes an unfair “tax” on farms, homes and businesses that choose to install solar panels, wind turbines, or other technologies on their property.

NIPSCO wants to increase their profit from 9.75% to 10.4%

NIPSCO wants to increase their return on equity (i.e., profit) so that you can pay their debts and “reward” their shareholders with earnings. It’s truly disturbing that NIPSCO has the gall to request higher profits as customers struggle to afford their monthly bills!

NIPSCO's Renewable Energy

CAC commends NIPSCO for their investments in renewable energy. Solar and wind will drive down rates in the long-term. However, NIPSCO recently delayed the retirement date for their Schahfer coal-fired units from 2023 to 2025. This means that customers will continue to pay for Schahfer while also paying for new renewables. The sooner NIPSCO retires their coal units, the sooner customers will fully realize the economic benefits of solar and wind projects. Renewables use no fuel and have minimal costs to operate and maintain, unlike fossil fuels. 

NIPSCO's Low-Income Energy Assistance

CAC also applauds NIPSCO for proposing a new program to help customers who qualify for the Low-Income Home Energy Assistance Program (LIHEAP) with their monthly bills. The proposal will apply a flat discount for LIHEAP eligible customers from July through October. NIPSCO estimates that participating customers will receive bill reductions of $12-22 per month, and that the program may not launch until the summer of 2024, at the earliest. NIPSCO is also proposing to cap deposits for LIHEAP customers at $50. While we appreciate this, CAC believes that all customers, especially low-income households, should not have to pay any deposit. 

NIPSCO Electric Base Rates Comparison

NIPSCO is proposing to phase in the rate increase over time, with the first rate increase impacting electric bills in September 2023. The following table shows how electric bills would change after the last phase of the rate increase takes effect in July 2024 for the average customer using 668 kilowatt hours (kWh) of electricity per month. 

This is the core of your electric bill - what you are charged for fixed costs and usage fees. This part of your NIPSCO bill makes up about 80% of your current total NIPSCO bill as of September 2022.

Trackers: the other 20% of your NIPSCO Electric bill not included in "base rates."

These trackers, also called “riders,” are currently included in your NIPSCO bill and added to the average bill you see above. The amount collected through trackers changes frequently: some are adjusted quarterly, while others change on a semi-annual or annual basis. NIPSCO is proposing to maintain all of their current trackers. They also want to create a new tracker to collect variable costs related to the operations of their coal-fired power plants. These costs have previously been collected through the Fuel Adjustment Clause (FAC) and base rates, and are expected to go down over time as NIPSCO continues to transition to renewable energy.

Total NIPSCO Bill Comparison, Including Trackers: