NIPSCO submits proposal to increase electric rates in Indiana
In support of modernization, safety, and reliability updates, the utility NIPSCO filed a new proposal this week with the Indiana Utility Regulatory Commission (IURC) to increase its base electric rates in 2023.
“The investments we’re making provide direct benefits to all our customers, the communities we serve, and the local economy,” Mike Hooper, NIPSCO president, said. “Beyond the necessary upgrades, grid modernization, and customer-centric enhancements that are critical to ensure the level of service our customers expect for the future, a significant portion of the investments are tied to our future energy transition and the addition of new renewable energy projects located in Indiana.”
NIPSCO is currently investing approximately $840 million into a renewable energy generation transition through next year. Another $700 million will go toward electric transmission and distribution system upgrades, technology improvements, and safety/reliability initiatives by the end of 2023. More automated technology, mobile apps, cybersecurity investments, and upgrades or replacements for overhead and underground cables should also be deployed.
While actual bill impacts may vary by customer, NIPSCO’s proposal would, if approved, cause the average residential electric customer’s bill to jump approximately $19 per month by September 2023. However, this would be spread over multiple years, with the remaining changes applied in March 2024 and July 2024.
“While there are near-term costs associated with the investments being made to get our wind and solar projects off the ground, customers are already benefiting from these existing renewable projects and will continue to see cost savings grow in the long term when we’re able to eliminate the costs associated with running our remaining coal-fired electric generating facilities by 2026-2028,” Hooper said.
NIPSCO’s last requested rate hike occurred in 2018. This time, the company will also factor in credits to bills from the revenue associated with the sale of excess power generated by existing renewable projects and sales from upcoming additions. This latest proposal will not affect natural gas rates and affiliated customers.
