NIPSCO has highlighted the need for updated electric rates to reflect the increase in costs to produce and distribute power to customers, and investments for continued service improvements.
Today's decision approves an agreement that results in a bill adjustment that is approximately half of NIPSCO's original request last year, which will go into effect on NIPSCO's
The newly approved rates would result in a
The change for individual commercial and industrial customers will vary depending on their usage patterns, but on average, overall rates for commercial and smaller industrial customers would increase approximately 5 to 6 percent when compared with today's rates.
"Customers want to be certain they're receiving quality service at a price that's fair," said
"The agreement approved today provides a fair resolution for NIPSCO's residential and commercial customers, along with NIPSCO's industrial customers that are crucial to
Customer Benefits From the Outcome
The IURC's decision follows a nearly 10-month review process, which includes direct input from customers and a range of consumer groups. This comprehensive and balanced resolution provides several benefits to customers, including:
- Smaller overall bill impact and substantially reduced monthly customer charge increase for residential, commercial and industrial customers when compared to the original proposal
- A platform for NIPSCO's continued reliability investments and service improvements for customers
- A new LED streetlight rate, which supports a new, recently approved LED streetlight conversion program for municipalities
- Expansion of an interruptible incentive program for industrial customers
Improving Customer Service
In recent years, NIPSCO has invested in a range of improvements that directly benefit customers, including:
- Eliminating estimated bills by replacing and upgrading all customer meters
- Reducing the time customers spend without power by 40 percent
- Upgrading technology to further improve response times and make it easier for customers to do business with NIPSCO, including the introduction of a new alert option for customers to receive text, email and phone calls with better information during power outages
- Offering ways to help customers save energy and become more energy efficient
- Providing optional programs for customers to generate and purchase electricity from renewable energy
Examples of the changes in costs since NIPSCO's last case include:
$95 millionin system upgrades to increase reliability (replacing poles and lines, constructing new substations, etc.) $90 millionto replace and upgrade all meters to eliminate estimated billing $8.5 millionin technology upgrades to improve response time and introduce options for customers to be better informed during power outages
- Increased labor and material costs
- Increased costs to generate electricity associated with operating and maintaining newly installed equipment to comply with federal environmental regulations to improve air and water quality
Natural gas rates are not at issue in this case.
Customers with questions regarding NIPSCO's new electric rates may visit NIPSCO.com/rates for more information.
About the OUCC
This news release contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed include, but are not limited to, changes in general economic, capital and commodity market conditions; pension funding obligations; economic regulation and the impact of regulatory rate reviews; compliance with environmental laws and the costs of associated liabilities; fluctuations in demand from residential and commercial customers; economic conditions of certain industries; the price of energy commodities and related transportation costs; the reliability of customers and suppliers to fulfill their payment and contractual obligations; potential impairments of goodwill or definite-lived intangible assets; changes in taxation and accounting principles; potential incidents and other operating risks associated with our business; the impact of an aging infrastructure; the impact of climate change; potential cyber-attacks; risks associated with construction and natural gas cost and supply; and extreme weather conditions; and other matters set forth in the "Risk Factors" section of
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