NIPSCO has won approval from the state of Indiana for a natural gas rate increase effective tomorrow.
The average residential customer will see a $5 monthly increase, broken up into two parts, with the second part phasing in by March. NIPSCO initially had asked state regulators for an $8 monthly increase but agreed to the smaller increase in a settlement agreement with the Indiana Office of Utility Consumer Counselor. That’s the state agency tasked with representing ratepayers when monopoly utilities want to raise rates.
NIPSCO said it needs the rate increase to offset costs of new federal pipeline safety requirements. The utility said the newly approved rates will also allow for system upgrades to support economic development and job creation.
In the settlement approved Wednesday by the Indiana Utility Regulatory Commission, NIPSCO agreed to pay more money into a fund that gives discounts to income-eligible customers.
The rate increase will generate $121 million in new annual revenue for NIPSCO, about $41 million less than its initial request.
