Business and Economics

NIPSCO Extends Current Gas Rates

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September 4, 2013 — NIPSCO’s natural gas customers will see no change in their basic rates.

The Indiana Utility Regulatory Commission approved a settlement agreement between NIPSCO, the Office of Utility Consumer Counselor  and other key customers to extend existing rates for all natural gas customers.

NIPSCO’s monthly gas delivery and service charge for residential customers will also remain at 11-dollars.

Key provisions from the settlement agreement approved by the IURC include:

·         NIPSCO will continue to separate fixed monthly service costs from variable, usage-driven costs, allowing customers to better track and manage energy usage.
·        Continuation of NIPSCO’s low-income customer heating assistance program for eligible residential natural gas customers.
·        Extension of reduced deposit requirements for eligible low-income customers.
·        Requirement to file another natural gas rate case on or before November of 2020.

Besides the base rates for natural gas service, the cost of the natural gas commodity itself represents the largest portion of customer bills – on average, two-thirds of an overall bill. NIPSCO has no mark-up and makes no profit on the cost of natural gas billed to its customers.

While NIPSCO cannot control market conditions affecting the price of natural gas, the utility does negotiate the best possible price for the natural gas it purchases for its customers.

NIPSCO’s natural gas rates have been the lowest in Indiana on-average for the past two years.

 

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