MERRILLVILLE – NIPSCO, a subsidiary of NiSource Inc., submitted a request this week with the Indiana Utility Regulatory Commission (IURC) to adjust its base natural gas rates – a proposed increase that will undergo a thorough regulatory review process, including the opportunity for public input.
If approved by the IURC, it is anticipated that the new gas rates would be phased in over two steps, according to a news release from NIPSCO. The first phase would go into effect no earlier than Sept. 1, 2022.
“Maintaining a safe system and ensuring the safety of our customers and communities is ingrained in all facets of the work we do now and it will continue to drive how we operate in the future,” said Mike Hooper, NIPSCO’s president and chief operating officer. “This request will allow for essential resources and investments to sustain the integrity of our infrastructure while balancing costs and improvements to better serve our customers.”
NIPSCO’s natural gas base rates were most recently approved in 2018. Since that time, NIPSCO has invested approximately $885 million in system upgrades, technology improvements and pipeline safety and reliability initiatives to be completed through the end of 2022, with plans for future, continued investments, the release states. NIPSCO has been the lowest natural gas cost provider in Indiana on average over the last 10 years according to IURC comparisons.
NIPSCO’s goals are to ensure its 850,000 industrial, commercial and residential gas customers across the 32 counties it serves receive a safe, reliable supply of natural gas and that NIPSCO remains in compliance with state and federal safety requirements.
As a regulated energy provider, NIPSCO cannot change any rates and charges to its customers without the approval of the IURC.
Based on NIPSCO’s proposal, a residential customer using 70 therms per month, paying approximately $55 today, would see an overall increase of approximately $9 per month, or 17%. This estimated change includes a proposed increase in the monthly customer charge from $14 to $24.50. This proposed increase in the customer charge will lead to greater bill stability, which benefits customers by reducing bill fluctuation between high-usage and low-usage periods, especially the winter heating months.
Actual projected bill impacts may vary by customer, depending on usage and future potential changes in market prices for natural gas.
The total overall requested increase would be about $115 million annually. Learn more about NIPSCO’s proposal at NIPSCO.com/2022gasrates.
