2025 Electric Base Rates

Facts about NIPSCO’s 2025 electric base rates

NIPSCO received a decision from the Indiana Utility Regulatory Commission (IURC) to adjust our electric rates. Beginning in July, the newly approved rates will be phased in over multiple steps to spread out the changes to customers, through Q1 2026.

The approved changes reflect a collaborative agreement among NIPSCO, the Indiana Office of Utility Consumer Counselor (OUCC) and several key stakeholders, including NLMK Indiana, United States Steel Corporation, Walmart Inc, the RV Industry User’s Group and the NIPSCO Industrial Group.

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 company’s electric generation transition to a more balanced generating portfolio is significant, representing approximately $2 billion in new investments through 2025. The company is also investing approximately $769.5 million in 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 to the IURC requesting permission to increase our electric rates on Sept. 12, 2024. After a nearly year-long, thorough regulatory review process, including public input, the IURC provided a decision on June 26, 2025, approving new electric rates.

Based on a review of the IURC’s decision, the average residential electric customer using 672 kilowatt hours (kwh) per month will see an overall increase of approximately $23 per month, or 16.75%. Beginning in July, the newly approved rates will be phased in over multiple steps to spread out the changes to customers, through Q1 2026. This change is lower than the initial proposed monthly increase of approximately $32 per month, or 22% based on an average residential customer using 729* kwh per month.

The approved plan includes a new bill payment assistance program for income-qualified electric customers, fully funded by NIPSCO, as well as elimination of deposits for income qualified gas and electric customers and waiver of certain reconnection charges for electric customers. The new payment assistance program will be available to customers beginning next year.

As a regulated energy provider, NIPSCO cannot change any rates or charges to our 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.

*The difference in average usage amounts comes from combining the multi-family rate (Rate 615) into residential Rate 611, which results in lower average overall residential usage. As reflected in NIPSCO’s settlement testimony, the settlement results in a 14.75% base rate revenue increase for residential Rate 511/611.

View NIPSCO's Rate Case Order

Frequently asked questions

What does a regulatory review of electric base rates mean?

Unlike most companies, which can change the price of their products/services without outside approval, regulated energy providers – like NIPSCO – must submit a detailed request to change their rates. The request includes evidence to support the increase and to demonstrate how it will benefit customers.

This process is called a rate case, and NIPSCO’s approval must come from the Indiana Utility Regulatory Commission (IURC). Our goal, under the nearly year-long review process, is to strike the right balance of cost and service to continue delivering on our commitments to customers.

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How and when will customer bills change?

Actual projected bill impacts may vary by customer – including non-residential customers – depending on usage and future potential changes in market prices for commodities like coal.

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Why are you changing electric rates when those rates were increased in 2023?

In order to continue to deliver a safe, reliable supply of electric service, we must continue to invest in our system to upgrade aging infrastructure, just as investments are made in bridges, roads and other infrastructure in our cities, towns and communities. Costs to implement and complete these upgrades have increased. We are also in the middle of a multiyear initiative to close our coal-fired generating stations and replace them with more efficient and sustainable sources of renewable generation such as solar, wind and battery storage. There are short-term costs associated with this electric transition, which will deliver cost savings for customers over the long term.

For example, once coal-fired Units 17 and 18 at our R.M. Schahfer Generating Station are retired by the end of 2025, it is estimated that there will be a reduction of approximately $70 million in fuel, purchase power, and operating and maintenance costs, making the proposed new electric rates lower than they would have been without the retirements.

NIPSCO’s investments continue to drive economic growth in northern Indiana, building up the communities we serve and driving job creation.

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If NIPSCO’s transition to renewable energy is going to save customers money, why are you raising rates?

NIPSCO’s transition to a more balanced and reliable generation portfolio, which includes renewable energy, is the most cost-effective path for customers when compared with our current energy mix. While there are near-term costs associated with the approximately $2 billion in investments being made to continue to advance our plan and get the renewable projects up and running, customers are already benefiting from these existing projects and will continue to see cost savings grow when we’re able to eliminate the costs associated with running our remaining coal-fired electric-generating facilities. For example, a significant component of customer bills today is associated with the cost of purchasing coal to operate our coal-fired electric-generating facilities, estimated at $126 million annually. As those remaining facilities are retired between 2026 and 2028, those costs will be eliminated.

Additionally, NIPSCO currently sells the renewable energy credits (RECs) generated by renewable energy projects and also sells the excess power these projects generate when it is not needed to serve our customers. Customers directly benefit by having lower charges on their bills through the fuel adjustment clause component, as 100% of the revenue associated with these sales by the existing renewable projects and the sales from the upcoming renewable project additions are passed back to customers. Those savings are nearly $105.7 million since 2021 and will continue to be realized in the future. As NIPSCO moves to a full ownership model for many of our renewable projects, tax credits from these projects will begin to be realized and benefit customers beginning in 2025. These tax credit benefits are tracked and credited to customers through lower base rates and the quarterly fuel adjustment clause proceeding resulting in lower rates than would have been in place without these tax credits.

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How has NIPSCO improved service to its customers?

It’s important for customers to understand what they’re paying for and that they’re getting good value. Service to customers has continued to improve, and NIPSCO seeks to further our commitment to customers in several ways, including:

Modernizing the electric system to improve system reliability, reduce outage time and harden it against severe weather
Replacing over 300 miles of a specific vintage of underground cable that was causing up to 90% of the outages on our underground system
Modernizing our electric distribution and transmission substations with equipment that helps monitor asset and system health, ensuring these technologies achieve their maximum life
Inspecting and treating over 300,000 wood poles helping to harden our distribution system and improve reliability
Maintaining reliability by coating and extending the life of more than 3,227 steel transmission structures since 2016 to protect against physical damage and weather conditions
Continuing investments to thwart and protect against cybersecurity threats
Reducing power outage durations by 40%
Providing customers with 100% of the revenues when NIPSCO sells the excess power we generate back to the grid, including sales from the newly added renewable energy
$70 million in savings for customers through eliminating fuel, purchase power, and operating and maintenance costs by retiring NIPSCO’s coal-fired generating units
Enhancing the overall customer experience through digital channels like our website and mobile app, along with customers connecting with customer care agents online via live or automated chat, the continuation of energy-efficiency programs and more

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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 we serve, 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 the approval of a new bill payment assistance program for income-qualified electric customers, fully funded by NIPSCO, as well as elimination of deposits for income-qualified gas and electric customers and waiver of certain reconnection charges for all electric customers. This new assistance program will be available to customers beginning next year.

Along with that new assistance program and 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 electricity 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 our payment plan agreements to offer our 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 are available through local Township Trustee offices. NIPSCO customers are encouraged to contact their local Township Trustee to see what help may be available.
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 from 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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Did customers have a voice in the review process?

Yes. Customers had a voice in the process in multiple ways – through written comments to the Indiana Office of Utility Consumer Counselor, at a public field hearing 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 base rate case filing?

The total overall revenue increase requested by NIPSCO was $369 million annually over current revenues. NIPSCO filed a settlement in this case on Feb. 7, 2025, decreasing the request to approximately $257 million annually over current revenues.

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Will this request change bills for NIPSCO gas customers?

No. This filing pertains only to NIPSCO electric service.

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View information about our 2025 electric rate case order

Facts about NIPSCO’s 2025 electric base rates

Frequently asked questions

What does a regulatory review of electric base rates mean?

How and when will customer bills change?

Why are you changing electric rates when those rates were increased in 2023?

If NIPSCO’s transition to renewable energy is going to save customers money, why are you raising rates?

How has NIPSCO improved service to its customers?

Are costs for charitable giving included in NIPSCO’s request?

Does NIPSCO offer any bill payment assistance for those who need it most?

Does NIPSCO offer incentives for customers to be more energy efficient?

Did customers have a voice in the review process?

How much is NIPSCO requesting in total in its electric base rate case filing?

Will this request change bills for NIPSCO gas customers?