The Northern Indiana Public Service Company had been seeking a new natural-gas rate structure which—if approved by the Indiana Utility Regulatory Commission (IURC)—would have increased the average residential customer's monthly gas bill by 2.65 percent or $1.67.
Instead, NIPSCO has settled for something very different: an agreement with the Indiana Office of Utility Consumer Counselor (OUCC) which—again, if approved by the IURC—would save the average residential customer $7.50 per year.
NIPSCO filed the settlement agreement on Tuesday with the IURC.
Under the agreement NIPSCO would reduce its overall natural gas rates by $14.8 million, based on a $5 million reduction for residential customers and a $9.8 million reduction for commercial and industrial customers. For NIPSCO's 660,000 residential natural gas customers, the reduction equates to a savings of approximately $7.50 per year per customer, the company said. Rates for commercial and industrial classes will also be lower.
NIPSCO would revise its low-income customer assistance program to make it similar in design to the Universal Service Program currently in place for Citizens Gas and Vectren Energy Delivery, and at the same funding level it currently contributes to the current Winter Warmth program, the company said. NIPSCO would contribute 25 percent of the program's costs, which under current usage levels total approximately $1.5 million. The first $500,000 of NIPSCO's funding will be used to continue a hardship program for non-eligible Low-Income Home Energy Assistance Program customers.
NIPSCO would continue to offer a variety of natural gas energy efficiency and conservation programs. NIPSCO currently provides $1 million in annual funding for these programs, and would provide an additional $1 million in funding for future extensions or enhancements to the programs within 30 days following the issuance of an order approving the settlement.
The settlement addresses a number of additional natural gas rate related matters, including revision to NIPSCO's depreciation and amortization expense levels, regulatory treatment of Alternative Regulatory Plan (ARP) revenues, and other items.
NIPSCO natural-gas rate case is the first in more than 20 years.
The Indiana Office of Utility Consumer Counselor (OUCC) represents Indiana consumer interests before state and federal bodies that regulate utilities.
Citizens Action Coalition of Indiana is a statewide nonprofit, nonpartisan, member-based organization that was founded in 1974 and represents residential consumers before the Indiana Utility Regulatory Commission and Indiana General Assembly on utility, energy, environmental and health care policy issues.