The Indiana Utility Regulatory Commission has given approval for Merrillville-based Northern Indiana Public Service Co. to increase its natural gas rates in a two-step process beginning in September. The utility says the average residential customer will see an expected overall increase of about $6 per month.
NIPSCO initially submitted its request for the rate increase in September 2021. The utility said at the time the additional revenue would be used to make infrastructure improvements, including replacing older gas lines.
“Customers expect service that is dependable and rates at the lowest cost possible,” NIPSCO President and Chief Operating Officer Mike Hooper said in written remarks. “This balanced outcome demonstrates a positive path toward continued investments in essential resources that will support safe operations, upgrading aging infrastructure and enhancing our customers’ experience.”
The first step in the rate increase will take place September 1, with the second step occurring in March 2023.
NIPSCO says the change marks a 10% increase, which is lower than the originally proposed 17%. The change also reduces the customer charge from the originally proposed $24.50 to $16.33.
The utility says the overall change is expected to generate an additional $71.8 million in revenue annually.