View information about our 2024 natural gas base rate case order

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.

• To continue to deliver a safe, reliable supply of natural gas, we must continue to invest in our system. The change in natural gas base rates is related to costs and investments largely driven by federal safety and compliance regulations, system upgrades to support economic development and job creation, and infrastructure modernization and improvements that will directly benefit customers and communities – including an estimated $1.1 billion in investments through the end of 2024. 
  
• We are committed to ensuring the safety of our employees and customers. In upholding this commitment, we have a responsibility to continuously improve and enhance the safety of our system by investing in new technologies and modernizing aging gas infrastructure that has been in operation by NIPSCO for many decades and must be maintained to meet current and long-term safety and customer needs. Costs for these essential investments have continued to rise in recent years.
  
• 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.
  
• NIPSCO’s detailed rate request, which included evidence to support the request and the benefits it will have to customers, was fully reviewed by the IURC. The review process included opportunities for public input.

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.

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 procuring the natural gas used by homes and businesses, and customers pay the same dollar-for-dollar cost NIPSCO pays. The cost of procuring natural gas is one of the largest determining factors of gas customers’ bills. 

Actual projected bill impacts may vary by customer – including nonresidential customers – depending on usage and future potential changes in market prices.

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.

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 the following:

• Low Income Home Energy Assistance Program (LIHEAP): LIHEAP support is available to households that are at or below 60 percent of 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. 

 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 natural gas bill, please visit NIPSCO.com/mybill.

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.

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. 

No. This filing pertains only to NIPSCO natural gas service.