Consumer News... For You! December 2023

DecemberNIPSCO

The OUCC is inviting written comments on two pending requests from Northern Indiana Public Service Co. (NIPSCO).

Electric Generation Facility

NIPSCO's electric utility is requesting IURC approval to build and operate a 400-megawatt natural gas-fired power plant, and approval to recover the costs through rates. The utility’s testimony estimates the construction and financing would cost about $643.7 million.

The facility would be built at the R.M. Schahfer Generating Station site near Wheatfield. It would replace a portion of capacity from the coal-fired Schahfer facility, which is set for retirement in 2025. NIPSCO is seeking Commission approval to recover costs as they are incurred, adjusting electric rates as frequently as every six months. 

An IURC public field hearing is scheduled for Dec. 18 in La Porte. The OUCC is inviting written consumer comments through Dec. 19. OUCC testimony is due Dec. 21.

Natural Gas Rate Case

In a separate case, NIPSCO is requesting a $161.9 million base rate increase for its natural gas utility. The request would raise the monthly residential customer service charge from $16.25 to $25.50, along with changes to the bill's volumetric portion.

The OUCC is inviting written public comments on the gas rate request through Jan. 24, 2024. Comments received by that date will be filed for the case's formal record.

OUCC testimony is due Jan. 31, 2024 with a final Commission order expected in the summer.

CenterPoint Rate Case

CenterPoint Energy filed a new rate case for its electric utility in southwestern Indiana on Dec. 5. The request would raise annual electric utility revenues by $118.8 million. 

As the OUCC starts its review, we are inviting written comments from CenterPoint Energy electric customers for the case record. Natural gas rates for CenterPoint Energy’s utilities are not at issue in this case.

Testimony from the OUCC will be due in mid-March. A Commission order is expected late last year.

AES Rates

A pending settlement agreement in the AES Indiana electric rate case would reduce the utility’s request by approximately $63.2 million. All of the case's formal parties have signed on to the agreement, including the OUCC, Citizens Action Coalition, City of Indianapolis, industrial customers, and additional parties.

The agreement would allow for a $9.36 increase in a monthly residential bill (1,000 kilowatt hours), compared to a $17.49 increase the utility originally requested. The fixed monthly customer charge for most residential customers would change from $16.75 to $17.50. AES Indiana initially sought to raise the charge to $25.00.  

A final Commission order is expected in early 2024. Any settlement before the IURC may be approved, denied, or modified. Settling parties must demonstrate than an agreement is in the public interest. 

I&M Rate Case

The OUCC's recommendations in the Indiana Michigan Power rate case would keep the total revenue increase below 3%. The utility proposed a 6.8% annual revenue increase in its initial filing in August. 

11 OUCC witnesses have filed testimony recommending significant reductions to I&M’s requested return on equity, depreciation costs, and other factors, which would reduce the overall increase by more than half.

I&M's rebuttal testimony is due Dec. 13 with an IURC evidentiary hearing scheduled in mid-January. A Commission order is expected in the spring. 

Additional Case Updates