Facts about NIPSCO’s 2025 electric base rates
Generating cleaner electricity from renewable energy projects and upgrading our electric infrastructure are some of the key factors leading to NIPSCO’s request with the IURC to adjust its base electric rates next year. As demonstrated by the company’s Integrated Resource Planning (IRP) process in 2018 and 2021, making these investments now is the most cost-effective approach for customers over the long term.
Informed by NIPSCO’s IRP process, the company’s transition to a more balanced electric generation portfolio is the best option for customers in terms of affordability and reliability over the long term. The transition to renewable energy generation is significant, representing approximately $2 billion in new investments through 2025. The company is also investing approximately $769.5 million for electric transmission and distribution system upgrades, technology improvements, and safety and reliability initiatives to be completed by the end of 2025.
Meanwhile, our costs to provide electric service to approximately 500,000 customers across northern Indiana have increased and continue to rise as we upgrade services and infrastructure today, so we’re prepared to safely and effectively meet tomorrow’s energy needs.
Because of these changes, we submitted a detailed proposal with the Indiana Utility Regulatory Commission (IURC) requesting permission to increase our electric rates. Based on NIPSCO’s proposal, an average residential electric customer, as a result of this case, would see an overall increase of approximately $32 per month, or approximately 22% above projected bills at the time of implementation.
Part of this request includes a proposal for a new bill payment assistance program for income-qualified customers, with a portion funded by NIPSCO. Additionally, NIPSCO has proposed a new multifamily housing rate structure that, if approved, would allow for a 9%, or an approximately $10 decrease per month, to an average multifamily housing customer using 444 kwh per month compared to the standard residential rate.As a regulated energy provider, NIPSCO cannot change any rates or charges to its customers without the approval of the IURC. NIPSCO’s natural gas rates are not affected by this request.
Actual projected bill impacts may vary by customer – including nonresidential customers – depending on usage and future potential changes in market prices.
Frequently asked questions
What does a regulatory review of electric rates mean?
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How and when will customer bills change?
Part of this request includes a proposal for a new bill payment assistance program for income qualified customers, with a portion funded by NIPSCO. Additionally, NIPSCO has proposed a new multifamily housing rate structure that, if approved, would allow for a 9%, or an approximately $10 decrease per month, to an average multifamily housing customer using 444 kwh per month compared to the standard residential rate.
As a regulated energy provider, NIPSCO cannot change any rates or charges to its customers without the approval of the IURC. NIPSCO’s natural gas rates are not affected by this request.
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Why are you changing electric rates when those rates were increased in 2023?
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If NIPSCO’s transition to renewable energy is going to save customers money, why are you raising rates?
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Are costs for charitable giving included in NIPSCO’s request?
No. NIPSCO is proud to support hundreds of charitable organizations across the communities it serves, but those costs are not part of this request.
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Does NIPSCO offer any bill payment assistance for those who need it most?
Yes. It is our goal to work with customers to identify solutions. NIPSCO offers a variety of options for customers who are having difficulty paying their bills – including low-income customers.
Part of this electric rate change request includes a proposal for a new bill payment assistance program for income qualified customers, with a portion funded by NIPSCO.
Outside of the state and federal energy assistance programs and moratorium on winter service disconnections, NIPSCO provides funding for an additional bill reduction program, credit arrangements, budget plans and reduced deposits for eligible customers,
including:
- Low Income Home Energy Assistance Program (LIHEAP): If electric is the primary source of customers’ heat, LIHEAP support is available to households that are at or below 60% 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.
- Flexible Payment Agreements: NIPSCO has expanded its payment plan agreements to offer its most flexible payment plans to customers who 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 is 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 electric costs over an entire year. Learn more at NIPSCO.com/budget.
Customers experiencing difficulty with paying their bills – regardless of their income – are 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. For further information on the components of your monthly bill, please visit NIPSCO.com/mybill.
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Does NIPSCO offer incentives for customers to be more energy-efficient?
Yes. NIPSCO offers a variety of programs and incentives designed to help residential and business customers be more energy efficient, including free in-home energy assessments, equipment rebates, weatherization and more. Visit NIPSCO.com/save to learn more.
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Do customers have a voice in the review process?
Yes, it’s important that customers understand they have a voice in the process in multiple ways – through written comments (which the IURC encourages), at public field hearings and via various consumer advocacy organizations that participate in the process.
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How much is NIPSCO requesting in total in its electric rate case filing?
The total overall requested revenue increase by NIPSCO is about $368.7 million annually over current revenues. Learn more about NIPSCO’s proposal at NIPSCO.com/2025electricrates.
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Does this request change bills for NIPSCO natural gas customers?
No. This filing pertains only to NIPSCO electric service. NIPSCO filed a separate natural gas base rate case increase with the IURC last year, which was approved in July 2024. Step one of those rates went into effect in August 2024.
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