NIPSCO receives approval for electric rate increase

Northern Indiana Public Service Company LLC (NIPSCO) received approval from the Indiana Utility Regulatory Commission (IURC) to adjust its electric rates.

The newly approved rates will be phased in over multiple steps beginning in July through the beginning of 2026 to spread out the changes to customers.

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

“NIPSCO is committed to connecting our customers with safe and reliable energy that add value to their everyday lives,” said Vince Parisi, NIPSCO President and Chief Operating Officer. “We’re proud of the collaborative outcome reached through this process, which balances the need for critical investments with the importance of minimizing the impact on our customers. We understand that any increase in bills is significant, and we remain focused on supporting our customers through this transition with new assistance programs and continued improvements to service and reliability.”

The IURC decision follows a nearly year-long, extensive review process, which included public input.

The rate adjustment supports more than $2 billion in capital investments to transition NIPSCO’s electric generation to a more balanced generation portfolio, which is expected to deliver long-term savings and environmental benefits. An additional $769.5 million will fund critical infrastructure upgrades, including replacing aging poles and lines, constructing new substations, and modernizing the electric grid to improve reliability and reduce outage durations.

The average residential electric customer using 672 kilowatt-hours (kWh) per month will see an increase of approximately $23 per month, or 16.75%, phased in over multiple steps beginning in July through Q1 2026. This is a reduction from the originally proposed increase of $32 per month.

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

NIPSCO’s investments have already led to a 40% reduction in power outage durations and improved system resilience. The company has replaced over 300 miles of aging underground cable and treated more than 300,000 wood poles to strengthen the grid. Customers also benefit from energy-efficiency programs, enhanced digital tools and a commitment to return 100% of revenues from excess power sales back to customers.

A newly-approved customer assistance program includes bill payment assistance 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.

Along with the new bill payment assistance program, available to customers beginning next year, and beyond the existing state and federal energy assistance programs and moratoriums on winter service disconnections, NIPSCO provides credit arrangements, budget plans and reduced deposits for eligible customers, including:

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

As always, any customer experiencing difficulty with paying their bill, regardless of their income, are encouraged to contact NIPSCO’s 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.