NIPSCO seeks natural gas rate increase; customers could pay 10% more
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Northern Indiana Public Service Co. is seeking an increase to its base rates for natural gas.
The Merrillville-based utility filed a request Wednesday with the Indiana Utility Regulatory Commission to raise rates by an estimated 10.6% on average. NIPSCO officials estimate that increase would add about $8 a month to its average customer’s bill.
The utility says it’s seeking the increase to meet safety and compliance regulations and modernize its infrastructure. The company has $1.1 billion in investments planned through the end of next year.
“As a regulated energy provider, we have a responsibility to replace older parts of our system, reduce potential risks, meet a host of federal compliance requirements, and improve the robustness and safety of our system for our approximately 859,000 natural gas customers and the communities we serve across 32 counties,” NIPSCO President Mike Hooper said in a news release.
The request comes after NIPSCO raised natural gas rates last year, also by 10%, adding an estimated $6 to customer’s monthly bill. That increase, which was finalized in March, was lower than the utility’s initial request for a 17% increase.
NIPSCO is seeking its latest increase at a time many utilities are predicting a drop in winter heating bills. Two weeks ago, the northern Indiana company put out a news release saying it expects natural gas bills this winter to be 24% lower than the winter of 2022 and 11% less than the winter of 2021.
Proposed rate increases will not come immediately. NIPSCO filed its request this week launching a yearlong regulatory review process. That process is expected to include opportunities for public comment.
NIPSCO cannot increase its rates without the IURC’s approval. Should the new rates be approved, NIPSCO officials say, full implementation of the increase would likely occur no later than March 2025.
More information about NIPSCO’s proposal is available online at NIPSCO.com/2024gasrates.