Balanced outcome will support safety and
compliance, and infrastructure modernization that will benefit
customers and communities
Northern Indiana Public Service Company LLC (NIPSCO) received a
decision from the Indiana Utility Regulatory Commission (IURC) to
adjust its gas rates, effective August 2024. Beginning in August,
the newly approved rates will be phased in over two steps to spread
out the changes to customers, with the remaining changes applied in
2025.
Just as investments are made in bridges, roads and other
infrastructure in our cities, towns and communities, we must also
make investments to put safeguards and checks in place that provide
high levels of safety. These additional safeguards and checks come
with an increase in costs. Federal pipeline safety
requirements—that are beneficial for the safe operation and
integrity of our gas system—have also increased since NIPSCO’s last
base rate case. There are costs associated with satisfying these
increased requirements.
“Customers expect safe, dependable natural gas service provided
in the most cost-efficient manner possible,” said Vince Parisi,
NIPSCO President and Chief Operating Officer. “This decision
balances the need for adjusted rates and supports the continuous
service and infrastructure improvements required to replace older
parts of our system, reducing potential risks and improving the
reliability and safety of our natural gas system.”
The newly approved rates will also allow for system upgrades to
support economic development and job creation, along with
infrastructure modernization and improvements that will directly
benefit customers and communities – including an estimated $1.1
billion in investments through the end of 2024.
How will residential customer bills change?
As a regulated energy provider, NIPSCO cannot change any rates
or charges to its customers without the approval of the IURC.
NIPSCO’s electric rates are not affected by this request.
The change in natural gas base rates is related to the costs
associated with delivering natural gas to customers and comprises a
smaller portion of the bill. NIPSCO does not mark up the price it
pays for securing the natural gas used by homes and businesses, and
customers pay the same dollar-for-dollar cost NIPSCO pays. The cost
of securing natural gas is one of the largest determining factors
of gas customers’ bills.
The IURC decision follows a nearly year-long, extensive review
process, including public input and a collaborative agreement with
the Indiana Office of Utility Consumer Counselor, the NIPSCO
Industrial Group, Citizens Action Coalition, Direct Energy Business
Marketing and Steel Dynamics Inc.
Based on a review of the IURC’s decision, the average
residential natural gas customer using 72 therms per month will see
an overall increase of approximately $5 per month (or 7.1 percent),
with the change being phased in over two steps beginning in August
2024 and in Q1 2025, no later than March 1, 2025. This change is
lower than the initial proposed monthly increase of approximately
$8 per month, or 10.6 percent.
Actual projected bill impacts may vary by customer – including
nonresidential customers – depending on usage and future potential
changes in market prices.
Notably, the settling parties agreed to an increase in NIPSCO’s
contribution to the Universal Service Program, or the company’s
Customer Assistance for Residential Energy Discount program, which
provides additional discounts to customers enrolled in the Low
Income Home Energy Assistance Program. NIPSCO’s contribution with
this settlement will increase the reduction range from 11-26
percent to 15-32 percent providing more assistance to customers who
need it most.
Improved service to customers
Service to customers has continued to improve, and NIPSCO has
furthered its commitment to customers in several ways in recent
years, such as with:
- Safety enhancements via smart technologies, like Picarro, to
allow for better potential leak detection and pipe
inspections.
- Natural gas infrastructure modernization and upgrades including
providing critical gas service to support industrial
customers.
- Projects to support state and local economic retention, growth
and job creation, including building out natural gas pipelines to
support new business investment in our service area, creating new
assessed value and jobs in local communities.
- Refined and expanded customer service, energy-efficiency and
energy assistance programs, including bill payment and assistance
programs for seniors, active-duty military and veterans.
Bill payment assistance and energy savings programs are
available
Bill payment assistance programs are available for customers
experiencing financial
difficulties – including those who are most vulnerable.
Beyond the existing state and federal energy assistance programs
and moratorium on winter service disconnections, NIPSCO provides
credit arrangements, budget plans and reduced deposits for eligible
customers, including the following:
- Low Income Home Energy Assistance Program (LIHEAP):
LIHEAP support is available to households that are at or below 60
percent of the state median income. The program opens on Oct. 1 for
online and mail-in applications. Customers can learn more and find
out if they qualify at eap.ihcda.in.gov or by calling 2-1-1.
- Customer Assistance for Residential Energy (CARE) Discount
Program: In addition to the assistance available through
LIHEAP, the NIPSCO CARE program is designed to provide further bill
reductions to LIHEAP-approved customers. Once enrolled in LIHEAP,
customers are automatically enrolled in the program. NIPSCO’s
contribution with this settlement will increase the reduction range
from 11-26 percent to 15-32 percent, depending on the same criteria
used by the state in determining the level of assistance.
- Flexible Payment Agreements: NIPSCO has expanded its
payment plan agreements to offer its most flexible payment plans to
customers that need financial support, including three-, six- and
12-month plans. Customers can learn more and enroll at
NIPSCO.com/PaymentPlans.
- Township Trustees: A limited amount of energy assistance
funds are available through local Township Trustee offices. NIPSCO
customers are encouraged to contact their local Township Trustee to
see what help may be available.
- The Emergency Rental Assistance Program: This program
provides up to 18 months of rental and utility assistance for
renters. Additional information can be found at
https://www.in.gov/ihcda/homeowners-and-renters/rental-assistance/.
- Budget Plan: The budget plan is a free service to all
NIPSCO customers to help manage their monthly energy bills by
spreading out gas costs over an entire year. Learn more at
NIPSCO.com/budget.
As always, any customer experiencing difficulty with paying
their bill – regardless of their income – is encouraged to contact
our Customer Care Center Monday through Friday between 7 a.m. and 7
p.m. CT at 1-800-464-7726 to determine what help might be available
to them. For more information on bill assistance, customers can
visit NIPSCO.com/FinancialSupport.
In addition to payment assistance options, NIPSCO offers a
number of energy-efficiency programs to help lower energy usage and
bills. Visit NIPSCO.com/Save for more information on available
programs and other ways to save.
Learn more about NIPSCO’s rates at NIPSCO.com/2024gasrates.
About NIPSCO: Northern Indiana Public Service Company LLC
(NIPSCO), with headquarters in Merrillville, Indiana, has proudly
served the energy needs of northern Indiana for more than 100
years. As Indiana’s largest natural gas distribution company and
the second-largest electric distribution company, NIPSCO serves
approximately 859,000 natural gas and 483,000 electric customers
across 32 counties. NIPSCO is part of NiSource’s (NYSE: NI) six
regulated utility companies. NiSource is one of the largest fully
regulated utility companies in the United States, serving
approximately 3.7 million natural gas and electric customers
through its local Columbia Gas and NIPSCO brands. More information
about NIPSCO and NiSource is available at NIPSCO.com and
NiSource.com.
About NiSource: NiSource Inc. (NYSE: NI) is one of the largest
fully-regulated utility companies in the United States, serving
approximately 3.3 million natural gas customers and 500,000
electric customers across six states through its local Columbia Gas
and NIPSCO brands. The mission of our approximately 7,400 employees
is to deliver safe, reliable energy that drives value to our
customers. NiSource is a member of the Dow Jones Sustainability -
North America Index, has been named as one of TIME Magazine’s
World’s Best Companies and is on Forbes lists of America’s Best
Employers for Women and Diversity. Learn more about NiSource’s
record of leadership in sustainability, investments in the
communities it serves and how we live our vision to be an
innovative and trusted energy partner at www.NiSource.com. NI-F
Forward-Looking Statements
This Press Release contains "forward-looking statements," within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Investors
and prospective investors should understand that many factors
govern whether any forward-looking statement contained herein will
be or can be realized. Any one of those factors could cause actual
results to differ materially from those projected. Forward-looking
statements in this press release include, but are not limited to,
statements concerning plans, strategies, objectives, expected
performance, expenditures, recovery of expenditures through rates,
and any and all underlying assumptions and other statements that
are other than statements of historical fact. Expressions of future
goals and expectations and similar expressions, including "may,"
"will," "should," "could," "would," "aims," "seeks," "expects,"
"plans," "anticipates," "intends," "believes," "estimates,"
"predicts," "potential," "targets," "forecast," and "continue,"
reflecting something other than historical fact are intended to
identify forward-looking statements. All forward-looking statements
are based on assumptions that management believes to be reasonable;
however, there can be no assurance that actual results will not
differ materially.
Factors that could cause actual results to differ materially
from the projections, forecasts, estimates and expectations
discussed in this Press Release include, among other things: our
ability to execute our business plan or growth strategy, including
utility infrastructure investments; potential incidents and other
operating risks associated with our business; our ability to work
successfully with our third-party investors; our ability to adapt
to, and manage costs related to, advances in technology, including
alternative energy sources and changes in laws and regulations; our
increased dependency on technology; impacts related to our aging
infrastructure; our ability to obtain sufficient insurance coverage
and whether such coverage will protect us against significant
losses; the success of our electric generation strategy;
construction risks and supply risks; fluctuations in demand from
residential and commercial customers; fluctuations in the price of
energy commodities and related transportation costs or an inability
to obtain an adequate, reliable and cost-effective fuel supply to
meet customer demand; our ability to attract, retain or re-skill a
qualified, diverse workforce and maintain good labor relations; our
ability to manage new initiatives and organizational changes; the
actions of activist stockholders; the performance and quality of
third-party suppliers and service providers; potential
cybersecurity attacks or security breaches; increased requirements
and costs related to cybersecurity; any damage to our reputation;
the impacts of natural disasters, potential terrorist attacks or
other catastrophic events; the physical impacts of climate change
and the transition to a lower carbon future; our ability to manage
the financial and operational risks related to achieving our carbon
emission reduction goals, including our Net Zero Goal; our debt
obligations; any changes to our credit rating or the credit rating
of certain of our subsidiaries; adverse economic and capital market
conditions, including increases in inflation or interest rates,
recession, or changes in investor sentiment; economic regulation
and the impact of regulatory rate reviews; our ability to obtain
expected financial or regulatory outcomes; economic conditions in
certain industries; the reliability of customers and suppliers to
fulfill their payment and contractual obligations; the ability of
our subsidiaries to generate cash; pension funding obligations;
potential impairments of goodwill; the outcome of legal and
regulatory proceedings, investigations, incidents, claims and
litigation; compliance with changes in, or new interpretations of
applicable laws, regulations and tariffs; the cost of compliance
with environmental laws and regulations and the costs of associated
liabilities; changes in tax laws or the interpretation thereof; and
other matters set forth in Item 1, "Business," Item 1A, "Risk
Factors" and Part II, Item 7, "Management’s Discussion and Analysis
of Financial Condition and Results of Operations," of our Annual
Report on Form 10-K for the fiscal year ended December 31, 2023,
and our Quarterly Report on Form 10-Q for the quarter ended March
31, 2024, some of which risks are beyond our control. In addition,
the relative contributions to profitability by each business
segment, and the assumptions underlying the forward-looking
statements relating thereto, may change over time.
All forward-looking statements are expressly qualified in their
entirety by the foregoing cautionary statements. We undertake no
obligation to, and expressly disclaim any such obligation to,
update or revise any forward-looking statements to reflect changed
assumptions, the occurrence of anticipated or unanticipated events
or changes to the future results over time or otherwise, except as
required by law.
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Tara McElmurry NIPSCO Communications Manager (219) 616-9113