NIPSCO investigation: State regulator responds to rising electricity bills
SOUTH BEND, Ind. (WNDU) — The chairman of Indiana’s utility regulatory agency is acknowledging the state’s affordability problem with electricity bills but says the commission’s role in addressing it in the short term remains unclear.
Andy Zay, chairman of the Indiana Utility Regulatory Commission (IURC), spoke with WNDU 16 News Now as part of an ongoing investigation into NIPSCO, the state’s highest-rate electric utility company.
NIPSCO rates and 10-year trend
According to the U.S. Energy Information Administration, NIPSCO’s average residential electricity price was $19.09 in 2024 — the highest among utility companies in Indiana. The company serves more than 100,000 customers.
Over the last 10 years, NIPSCO’s residential electricity bill increased 91.71 percent, the highest increase among all utility companies in the state.
PREVIOUS COVERAGE: NIPSCO customers report dramatic utility bill increases, demand answers
What the IURC chairman said
The IURC is the state agency that approves gas and electricity rates and delivery charges for utility companies, including NIPSCO.
When asked why residents in northern Indiana pay some of the highest electricity bills in their homes, Zay said it was difficult to go into detail in his role as a regulatory commissioner.
On the question of delivery charge transparency, Zay said the commission’s energy team evaluates costs when a rate case comes before the agency.
“They will dig into those costs and determine, again, whether any increase in rates is required or demanded or fair or not,” Zay said.
When pressed on the recent price increases, Zay said the commission is reviewing past decisions and looking at how to affect rates going forward.
“It’s just I don’t know, you know, what role we play here in the short term to affect that,” Zay said. “In the broader term, we’re looking back at the decisions we were made and we’re looking at how we can impact that going forward.”
Zay also said the commission is aware of the situation and is examining short-term options.
“But we are very aware of what’s going on. We are looking at short-term options, but really operating in the long term and how we can make sustainable affordability,” Zay said.
PREVIOUS COVERAGE: NIPSCO president addresses customer concerns over rising utility bills
Customers and advocacy group respond
For most of NIPSCO’s service area, the company operates as a monopoly, leaving customers with no alternative provider.
Terri Logan, founder of the social media group NIPSCO Monopoly Madness, said her utility bill this month exceeded what she pays for her car and house combined.
Logan pointed to delivery fees as the central complaint among customers.
“My last delivery fee on my gas bill was $186,” Logan said. “I have a friend who lives in Michigan. Her total natural gas bill was $149. And she has the same size house I do. Her delivery charge was $49. That is the biggest thing people are complaining about is our bills are 150 to 200% extra charges.”
Logan also said the IURC has consistently approved rate increases.
“If IURC is listening to us, this just proves they aren’t, because every request, it seems like, OK, yeah, you can have your increase,” Logan said. “And it’s getting harder and harder for us to try to keep up. And that’s why we’re screaming from the top of our lungs, we need help.”
PREVIOUS COVERAGE: NIPSCO customers say their bills skyrocketed after meter replacements
NIPSCO statement and House Bill 1002
In response to questions about delivery charges, NIPSCO said in a statement: “Delivery rates cannot be changed by NIPSCO alone. Any adjustment must be reviewed and approved through a formal, transparent process by the Indiana Utility Regulatory Commission (IURC) to ensure rates are fair and reasonable.”
It is the utility company, however, that initiates the motion to increase rates or delivery charges.
Indiana lawmakers passed House Bill 1002 last month, which mandates utility companies to provide a levelized payment plan to customers. Several amendments to the bill were voted down, including one that would have required the IURC to hold local meetings in different locations across the state. Other failed amendments would have eliminated sales tax for utilities and required utility companies to provide detailed breakdowns of their bills.
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