MERRIVILLE — Northern Indiana Public Service Company today submitted a request seeking to adjust electric base rates — a change that must go through a thorough regulatory review process and wouldn’t take effect until mid-2016.

Since the company’s last request to change base rates five years ago, it costs more to produce and distribute power to customers, and NIPSCO continues to make considerable investments to improve service to customers.

“Customers deserve and depend on reliable electricity at a fair price,” said NIPSCO executive vice president, Violet Sistovaris. “That’s why NIPSCO is working hard to continually improve service while effectively managing costs. Our proposal works to strike the right balance of cost and service, so that we can provide the level of service customers expect.”

NIPSCO’s request, which is decided by the Indiana Utility Regulatory Commission, seeks to find a balance between new rates that are fair to both customers and the utility. The request includes evidence to support the requested increase and demonstrates how the dollars will be used fully to the benefit of customers. It also satisfies the terms of a previous requirement to file a case by the end of 2015.

Customers have a voice in the process in multiple ways — written comments submitted directly to the IURC, a public field hearing, and through various consumer advocacy organizations who participate in the process.

Just as with most businesses, the costs to serve customers increase over time. 

Under NIPSCO’s filing, residential electric bills would rise by $10.53 a month from $91.63 to $102.16, based on the typical amount used by customers.  Customers can calculate individual bill impacts based on their actual usage at NIPSCO.com/rates.

Examples of the changes in costs since NIPSCO’s last case include:

• $95 million in system upgrades to increase reliability (replacing poles, lines, constructing new substations, etc.)
• $90 million to replace all meters to eliminate estimated billing
• $8.5 million in 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/maintaining newly installed equipment to comply with federal environmental regulations to improve air/water quality

The impact on individual commercial and industrial customers will vary depending on their usage patterns, but on average, rates for overall commercial and smaller industrial customers would increase approximately seven to nine percent when compared with today’s bills.

NIPSCO is focused on making the necessary investments and improvements to the service it provides to customers.

And, it’s important for customers to understand what they’re paying for and that they’re getting a good value. NIPSCO in recent years has invested in a range of improvements that directly benefit customers:

• Eliminating estimated bills by replacing 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 us, 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 electricity from renewable energy

NIPSCO is also proposing a new low-income assistance program for summer electric assistance — when electric usage is typically at its highest point.  The mechanics of the program will be determined in the review process, but it will be comparable in nature to the existing winter heating assistance program that NIPSCO and other Indiana utilities offer.

Managing company costs while maintaining affordable and competitive rates for its customers is a key part of this case. 

In Indiana, where energy costs are relatively low when compared to the Midwest and the nation, NIPSCO has held the line on electric rate increases better than any other Indiana utility during the last decade, according to the IURC annual residential bill surveys. The average bill in Indiana has increased approximately five percent annually, while NIPSCO has seen the lowest change at three percent annually.

Customers with questions regarding NIPSCO’s proposal may visit NIPSCO.com/rates for more information.