OUCC: NIPSCO Electric Rate Case

Pending Rate Case

Most parties to NIPSCO’s pending electric rate case, including the OUCC, have reached a settlement agreement on the utility’s request. The agreement is now pending before the IURC, which may approve, deny, or modify any agreement it considers.

Settlement Agreement
OUCC Settlement Testimony
IURC Case File (including settlement testimony from additional parties)
Revised Procedural Schedule

NIPSCO originally requested an annual revenue increase of about $368.7 million. The settlement agreement reduces the increase to approximately $257 million. In previous testimony, the OUCC recommended limiting the increase to $230.4 million. Much of the proposed increase is driven by generation, transmission, and distribution system projects that have received IURC pre-approval.

The agreement, if approved:

Authorizes a 9.75% return on equity. NIPSCO initially requested a 10.5% return in this case. Its current authorized ROE is 9.8%.
Keeps the $14.00 monthly residential electric customer charge at its current amount.
Reduces depreciation and operating and maintenance expenses from the utility’s request.
Will create a billing assistance program with voluntary ratepayer contributions and $1.5 million in annual shareholder funding.
Establishes a sub-docket to address issues related to new large or mega load customers, including data centers.

Settling parties include the OUCC, industrial customers, NLMK Indiana, US Steel, Walmart, RV manufacturers, and NIPSCO.

All hearings in this case have concluded and all filings are complete. A final order is expected later this year.

Natural gas rates and charges are not at issue in this case.

Utility Testimony (Initial Request)
NIPSCO filed its petition and the following testimony on Sept. 12, 2024:
The utility's accounting work papers and additional exhibits are posted on the Commission's website.
Public Comments
OUCC Testimony
In the following testimony filed on Dec. 19, 2024 - and revised on Jan. 15, 2025 - the OUCC's analysis showed that a rate increase of $230.4 million is warranted based on the case's evidence and applicable law, instead of NIPSCO's request for a $368.7 million electric base rate increase.
The OUCC recommended decreasing the utility's authorized cost of equity to 9.0% from its proposed 10.6% and keeping the monthly customer service charges at their current levels. In addition, the OUCC identified numerous line items from the utility's proposed amounts for operating and maintenance expenses.
Approximately 4,900 written consumer comments were filed with the OUCC’s testimony, including resolutions received from local governmental entities, school corporations, and other customers in the utility’s service territory. In addition, 68 NIPSCO customers spoke at the IURC’s three public field hearings in this case.
NIPSCO filed rebuttal testimony on Jan. 16, 2025.
The OUCC issued a media release on Dec. 20, 2024.
All publicly filed documents in this case (Cause No. 46120), including testimony from any intervening parties, are available on the IURC's website.

Previous Rate Cases

2022-2023 Rate Case (Current Rates)

The IURC issued an order setting NIPSCO's current electric base rates on Aug. 2, 2023.
The order approved a settlement agreement among most of the case's formal parties, which reduces the total revenue increase by approximately $103 million.
NIPSCO initially filed a $395 million request under IURC Cause No. 45772.
NIPSCO’s original request would have raised an average monthly residential electric bill – at 668 kilowatt hours (kWh) per month – by $19.69. Under the agreement, the increase would be limited to $12.37 when fully phased in next year. The monthly residential customer charge would rise from $13.50 to $14.00, instead of the $17.00 charge the utility had proposed.
Natural gas rates and services were not at issue in this case.
2018-2019 Rate Case

The IURC issued an order setting NIPSCO's current electric base rates on Dec. 4 2019. The order approved a settlement agreement among most of the case's formal parties, which reduces the total revenue increase by approximately $103 million.
The OUCC and a number of additional parties have reached a settlement agreement on some, but not all, of the case's issues, including monthly customer charges (reducing the residential charge from $14.00 to $13.50) and the utility's overall revenue requirement (allowing a 3.25% system-wide increase rather than the utility's 7.77% request).
A second, separate settlement agreement between NIPSCO and industrial customers addresses cost allocations within the industrial class of customers. The OUCC was not party to this second agreement and filed testimony on June 17, 2019.
To review all publicly filed documents in this case, please see the file on the IURC website. under IURC Cause No. 45159.
Natural gas rates and services were not at issue in this case.

This page will be updated based on developments in the pending rate case.

4-14-25