Merrillville-based Northern Indiana Public Service Co. and the Indiana Office of Utility Consumer Counselor have reached a settlement on a rate increase request. The agreement would limit the base rate increase to NIPSCO electric customers to half of the utility’s original request.
The OUCC says the bate rate increase to residential customers will be limited to 5.4 percent, down from the 11 percent request in the original October 2015 request. That means the increase in the fixed monthly customer charge will increase from $11 to $14. Under the original proposal, the charge would have reached $20. The agency says commercial and industrial customers will also see smaller increases than the original proposal, with the change varying depending on usage.
NIPSCO Vice President Violet Sistovaris says the settlement "strikes the right balance" to keep its service affordable, reliable and environmentally sustainable. The utility says the additional revenue will allow for continued investments and service improvements, including a new LED streetlight conversion program for municipalities.
The settlement still needs approval from the Indiana Utility Regulatory Commission. Rate increases likely will not take effect until the second half of the year.
The proposed agreement is subject to Indiana Utility Regulatory Commission (IURC) review and approval, and new rates are not expected to take effect until the second half of 2016. You can find more information by clicking here.