[Southsider2k12]

NIPSCO is looking for what appears to be a 11.5% rate increase (using their numbers of an average bill going from $91.63 to $102.16 monthly, on average). The following is their press release.

NIPSCO SEEKS TO MODIFY ELECTRIC RATES, FURTHER IMPROVE SERVICE TO CUSTOMERS

· Essential for covering increased costs and making continued service improvements
· First such request since 2010 and only the second change in base rates in more than 25 years
· New low-income electric assistance program introduced

MERRILLVILLE, Ind. - Northern Indiana Public Service Company (NIPSCO), a NiSource Inc. (NYSE: NI) company, today submitted a request seeking to adjust electric base rates – a change that must go through a thorough regulatory review process and wouldn’t take effect until mid-2016.

Since the company’s last request to change base rates five years ago, it costs more to produce and distribute power to customers, and NIPSCO continues to make considerable investments to improve service to customers.

“Customers deserve and depend on reliable electricity at a fair price,” said NIPSCO executive vice president, Violet Sistovaris. “That’s why NIPSCO is working hard to continually improve service while effectively managing costs. Our proposal works to strike the right balance of cost and service, so that we can provide the level of service customers expect.”

NIPSCO’s request, which is decided by the Indiana Utility Regulatory Commission (IURC), seeks to find a balance between new rates that are fair to both customers and the utility. The request includes evidence to support the requested increase and demonstrates how the dollars will be used fully to the benefit of customers. It also satisfies the terms of a previous requirement to file a case by the end of 2015.

Customers have a voice in the process in multiple ways – written comments submitted directly to the IURC, a public field hearing, and through various consumer advocacy organizations who participate in the process.

Working to Hold the Line on Costs and Customer Bill Impacts
Just as with most businesses, the costs to serve customers increase over time.

Under NIPSCO’s filing, residential electric bills would rise by $10.53 a month from $91.63 to $102.16, based on the typical amount used by customers. Customers can calculate individual bill impacts based on their actual usage at NIPSCO.com/rates.

Examples of the changes in costs since NIPSCO’s last case include:
· $95 million in system upgrades to increase reliability (replacing poles, lines, constructing new substations, etc.)
· $90 million to replace all meters to eliminate estimated billing
· $8.5 million in technology upgrades to improve response time and introduce options for customers to be better informed during power outages
· Increased labor and material costs
· Increased costs to generate electricity associated with operating/maintaining newly installed equipment to comply with federal environmental regulations to improve air/water quality

The impact on individual commercial and industrial customers will vary depending on their usage patterns, but on average, rates for overall commercial and smaller industrial customers would increase approximately seven to nine percent when compared with today’s bills.

Improving Customer Service
NIPSCO is focused on making the necessary investments and improvements to the service it provides to customers.

And, it’s important for customers to understand what they’re paying for and that they’re getting a good value. NIPSCO in recent years has invested in a range of improvements that directly benefit customers:
· Eliminating estimated bills by replacing all customer meters
· Reducing the time customers spend without power by 40 percent
· Upgrading technology to further improve response times and make it easier for customers to do business with us, including the introduction of a new alert option for customers to receive text, email and phone calls with better information during power outages
· Offering ways to help customers save energy and become more energy efficient
· Providing optional programs for customers to generate electricity from renewable energy

NIPSCO is also proposing a new low-income assistance program for summer electric assistance – when electric usage is typically at its highest point. The mechanics of the program will be determined in the review process, but it will be comparable in nature to the existing winter heating assistance program that NIPSCO and other Indiana utilities offer.

Effectively Managing Customer Bill Impacts
Managing company costs while maintaining affordable and competitive rates for its customers is a key part of this case.

In Indiana, where energy costs are relatively low when compared to the Midwest and the nation, NIPSCO has held the line on electric rate increases better than any other Indiana utility during the last decade, according to the IURC annual residential bill surveys. The average bill in Indiana has increased approximately five percent annually, while NIPSCO has seen the lowest change at three percent annually.

Customers with questions regarding NIPSCO’s proposal may visit NIPSCO.com/rates for more information.

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Anyone ever had any experience with Just Energy:

https://www.justenergy.com/indiana/

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[Groucho]

NIPSCO is looking for what appears to be a 11.5% rate increase (using their numbers of an average bill going from $91.63 to $102.16 monthly, on average). The following is their press release.

An 11 dollar increase is large. However, 11.5% over a 6 year period is an annual increase of 1.91%. That's hardly a startling or excessive number. However Coal prices are at an all time low as are natural gas prices.
Questions to Nipsco should be related to what has been expended, what mandates in the way of environmental improvements had and have to be made and how does Nipsco compare to other energy providers in of similar size in other parts of the country.

Bench-marking Nipsco against other similar sized providers tells you how they are functioning relative to their peers. I started writing this thinking that while it is a big increase it is reasonable. That may not be the case in considering the almost 50% drop in the cost of their fuel, which must be close to their highest cost.

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This is what they're currently charging:

Current Capped Price
$0.575/therm

So if the 11% rate hike is approved for next summer, the new charge would be:

$0.06325/therm

http://bit.ly/1MOCKe6

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[diggler]

NIPSCO scores settlement on $1.25 billion electric plan

By Keith Benman

NIPSCO has reached a settlement with consumer groups in its $1.25 billion electric modernization case, which would raise customers charges by a cumulative 7 percent by 2022 if approved by state regulators.

The electric modernization settlement comes one month after the utility settled with consumer groups in its electric rate case, cutting its requested rate increase to 5.4 percent from an original request of 11 percent.

The electric modernization settlement will now be taken under consideration by the Indiana Utility Regulatory Commission (IURC), which can accept the settlement in its entirety, modify it, or reject it. The rate case settlement is also under consideration by the IURC.

The Citizens Action Coalition, the state's largest grass-roots consumer group, is not party to either settlement.

The rate increases would come in the form of bill surcharges called "trackers," which would pay for the modernization work on an ongoing basis. The increase in the surcharge would average about 1 percent per year, according to NIPSCO. The surcharges would be subject to ongoing review by the IURC during the seven-year term of the plan.

The electric modernization plan includes projects like replacing underground cables, replacing poles and replacing substation transformers and breakers.

"Through smart investments and proactively replacing aging parts of our electric system, this plan is about ensuring that our customers have the safe, reliable, and affordable source of energy they depend on today and into the future," said NIPSCO Executive Vice President Violet Sistovaris.

Indiana Utility Consumer Counselor David Stippler said the agreement assures the NIPSCO projects will proceed on the most cost-effective basis possible, while allowing the utility to make the infrastructure investments needed to strengthen its grid.

In addition to the the Indiana Office of Utility Consumer Counselor, NIPSCO's industrial customers, the LaPorte County Board of Commissioners, and the Indiana Municipal Utility Group are parties to the settlement.

The settlement also calls for a mass retrofit of utility-owned streetlights with energy-efficient LED bulbs throughout NIPSCO’s electric service territory. Costs will be divided evenly between participating municipalities and customers.

In addition, up to $3.5 million will be spent for an an economic development project at the Kingsbury Industrial Park in LaPorte County, which officials there hope to make a major intermodal hub for trucks and trains.

This is the second time NIPSCO has sought IURC approval of a seven-year electric modernization plan. Last year, the Indiana Court of Appeals rejected a $1.2 billion NIPSCO electric modernization plan and surcharges collected were returned to customers. The utility then filed the current plan in January.

Natural gas rates would not be affected by the electric modernization settlement.

[Groucho]

NIPSCO scores settlement on $1.25 billion electric plan

By Keith Benman

NIPSCO has reached a settlement with consumer groups in its $1.25 billion electric modernization case, which would raise customers charges by a cumulative 7 percent by 2022 if approved by state regulators.

The electric modernization settlement comes one month after the utility settled with consumer groups in its electric rate case, cutting its requested rate increase to 5.4 percent from an original request of 11 percent.

The electric modernization settlement will now be taken under consideration by the Indiana Utility Regulatory Commission (IURC), which can accept the settlement in its entirety, modify it, or reject it. The rate case settlement is also under consideration by the IURC.

The Citizens Action Coalition, the state's largest grass-roots consumer group, is not party to either settlement.

The rate increases would come in the form of bill surcharges called "trackers," which would pay for the modernization work on an ongoing basis. The increase in the surcharge would average about 1 percent per year, according to NIPSCO. The surcharges would be subject to ongoing review by the IURC during the seven-year term of the plan.

The electric modernization plan includes projects like replacing underground cables, replacing poles and replacing substation transformers and breakers.

"Through smart investments and proactively replacing aging parts of our electric system, this plan is about ensuring that our customers have the safe, reliable, and affordable source of energy they depend on today and into the future," said NIPSCO Executive Vice President Violet Sistovaris.

Indiana Utility Consumer Counselor David Stippler said the agreement assures the NIPSCO projects will proceed on the most cost-effective basis possible, while allowing the utility to make the infrastructure investments needed to strengthen its grid.

In addition to the the Indiana Office of Utility Consumer Counselor, NIPSCO's industrial customers, the LaPorte County Board of Commissioners, and the Indiana Municipal Utility Group are parties to the settlement.

The settlement also calls for a mass retrofit of utility-owned streetlights with energy-efficient LED bulbs throughout NIPSCO’s electric service territory. Costs will be divided evenly between participating municipalities and customers.

In addition, up to $3.5 million will be spent for an an economic development project at the Kingsbury Industrial Park in LaPorte County, which officials there hope to make a major intermodal hub for trucks and trains.

This is the second time NIPSCO has sought IURC approval of a seven-year electric modernization plan. Last year, the Indiana Court of Appeals rejected a $1.2 billion NIPSCO electric modernization plan and surcharges collected were returned to customers. The utility then filed the current plan in January.

Natural gas rates would not be affected by the electric modernization settlement.

Cutting the rate increase in half is a good compromise. However knowing that citizen groups everywhere oppose rate increases the original 11% may have been designed to be cut in half.

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Natural gas prices should DOUBLE over the next year.

Over-supply plus a warm 2015-2016 winter have resulted in low gas prices. That is about to change because supply is decreasing.

http://bit.ly/1qyH9hf

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