NIPSCO received a decision from the Indiana Utility Regulatory Commission (IURC) to adjust its gas rates.
In a press release from NIPSCO, beginning in August, the newly approved rates will be phased in over two steps to spread out the changes to customers, with the remaining changes applied in 2025. NIPSCO stated, just as investments are made in bridges, roads and other infrastructure in our cities, towns and communities, they must also make investments to put safeguards and checks in place that provide high levels of safety. It was noted, these additional safeguards and checks come with an increase in costs. The press release stated, federal pipeline safety requirements that are beneficial for the safe operation and integrity of our gas system have also increased since NIPSCO’s last base rate case.
The newly approved rates will also allow for system upgrades to support economic development and job creation, along with infrastructure modernization and improvements that will directly benefit customers and communities including an estimated $1.1 billion in investments through the end of 2024. As a regulated energy provider, NIPSCO cannot change any rates or charges to its customers without the approval of the IURC. It was also noted, NIPSCO’s electric rates will not be affected by this request. The change in natural gas base rates is related to the costs associated with delivering natural gas to more customers and comprises a smaller portion of the bill. NIPSCO stated, they do not mark up the price they pay for securing the natural gas used by homes and businesses, and customers pay the same dollar-for-dollar cost NIPSCO pays.
Based on a review of the IURC’s decision, the average residential natural gas customer using 72 therms per month will see an overall increase of approximately $5 per month, with the change being phased in over two steps beginning in August 2024 and within the first quarter of 2025, no later than March 1.
NIPSCO says, this change is lower than the initial proposed monthly increase of approximately $8 per month. Actual projected bill impacts may vary by customer including nonresidential customers depending on usage and future potential changes in market prices. Learn more about NIPSCO’s rates here.
