The Northern Indiana Public Service Company has released the following statement to keep customers apprised of the rate case which it has filed with the Indiana Utility Regulatory Commission (IURC).

“It has been more than two decades since NIPSCO initiated a rate proceeding for review of its electric rates, so we understand that our customers may have questions about the rate case process—what it is, and what it may mean for their electric bill,” said Frank Shambo, vice-president of regulatory and legislative affairs.

“Why is NIPSCO filing a rate case now? NIPSCO is filing a rate case at this time due to a commitment we made as part of an agreement reached more than two years ago in another proceeding. Rate case filing have become more common recently in Indiana and around the country, with many utilities filing for the first time in may years.

“Will NIPCSO be asking for a rate increase? If so, how much? We are in the final stages of preparing our rate case filing. That filing will include detailed information about new services and, of course, our proposed rates. While there has been speculation about the request NIPSCO will be making, the process is designed to make sure that our rates represent the necessary costs to continue providing safe, reliable, and cost-effective service now and in the future. The amount of our overall cost to provide service and the related changes in rates, for the various customer groups (residential, commercial, and industrial), will be available later this month.

“How will the IURC decide what NIPSCO’s rates should be? In deciding how much revenue NIPSCO is allowed to earn, the IURC will have the opportunity to review NIPSCO’s entire operation. A rate case includes all interested parties, including the Indiana Office of Utility Consumer Counselor (OUCC), which represents all customers, consumer advocates, political leaders, and others to review NIPSCO’s filing and ask for additional information. The process can take 12 to 18 months.

“What does NIPSCO hope to achieve in the rate case? There a number of challenges on the horizon that NIPSCO will be addressing in this rate case, starting with the need for additional generating capacity to meet customers’ growing demand for electricity, changing environmental standards to ensure air and water quality, hiring and training new workers to replacing retiring employees, increasing costs of material and fuel for generating electricity.

“We understand the value that energy brings to daily life and it is our commitment to continue providing our customers with safe and reliable service now and in the future. We sincerely appreciate your business.”

Posted 8/5/2008