The Indiana Office of Utility Consumer Counselor (OUCC) is recommending a substantial reduction to NIPSCO’s request for a $368.7 million electric base rate increase. Instead, the OUCC’s analysis shows that an increase of $203.2 million is warranted based on the case’s evidence and applicable law.
Twelve OUCC witnesses filed testimony with the Indiana Utility Regulatory Commission (IURC) this week, following a 3-month legal and technical review of the testimony, exhibits, and work papers filed by the utility. As the OUCC’s testimony notes, most of the increase requested is due to capital projects that received IURC preapproval and are now being included in rates as is provided by state law.
Approximately 4,900 written consumer comments were filed with the OUCC’s testimony, including resolutions received from local governmental entities, school corporations, and other customers in the utility’s service territory. In addition, 68 NIPSCO customers spoke at the IURC’s three public field hearings in this case.
The OUCC’s testimony recommends: Keeping the utility’s monthly customer service charges for residential and small commercial customers at their current levels; decreasing the utility’s authorized cost of equity to 9.0%. NIPSCO’s current authorized return of 9.8% was approved in 2023. The utility proposes an increase to 10.6% in this case; reducing the utility’s proposed depreciation expense and reducing numerous line items from the utility’s proposed amounts for operating and maintenance expenses.
NIPSCO’s rebuttal testimony is due on Jan. 16, 2025, with an evidentiary hearing scheduled to start on Feb. 5, 2025. A final order from the IURC is expected in the summer of 2025.
Natural gas rates and charges are not at issue in this case. NIPSCO’s electric utility provides service to more than 487,000 customers in 20 northern Indiana counties.
