NIPSCO’s application to increase electricity rates for individual customers

NIPSCO customers could soon see higher electricity bills as the utility has filed a motion with the Indiana Utility Regulatory Commission to increase its electricity rates.

Under the proposed changes, the average NIPSCO residential customer will see their overall electricity rate increase by 22%, or about $32 per month.

“Our request is driven in large part by our renewable energy investments to support NIPSCO’s transformation to electric generation, as well as infrastructure upgrades to provide greater safety and reliability,” said Tara McElmurry, communications manager for NIPSCO.

NIPSCO plans to invest $2 billion in renewable energy projects through 2025 and another $769 million to upgrade its transmission and distribution systems, which officials said has already been approved by the IURC.

NIPSCO says these changes provide a cost-effective, long-term solution for customers, helping to lower energy costs into the future.

“The $80 million in savings to customers is the approximate savings that our renewable energy sources, wind and solar, and now battery storage technology, are generating,” McElmurry said.

The proposed rate increase will be reviewed by the IURC, which officials say will take about 10 months, with the possibility of public comment in the future.

We encourage customers who are struggling financially to explore available assistance programs and energy conservation resources offered by NIPSCO.

“It is very important that customers have a say in this process, and we understand the significance of any rate increase,” McElmurry said.

In October 2023, NIPSCO filed a similar application, which was approved in July of that year. An average 10% increase in natural gas rates.

Many community members say it is still expensive.

“Given everything we’ve seen over the last few years, any small increase is painful, and to see a 30 percent increase is not easy, especially on a month-to-month basis,” said Ryan Kelly, who lives in Mishawaka.

Others say they fear the impact it could have, combined with other rising costs.

“On top of all the other things that are going to be expensive, yes, it’s unfortunate that this raises the cost of everything else,” said Todd Robertson, who lives in Mishawaka.

If approved, the NIPSCO rate changes would be implemented in two phases: the first by September 1, 2025, and the remaining changes by March 2026.