NIPSCO gas rate increases started Aug. 1

Increased gas rates are now in effect for Northern Indiana Public Service Company LLC (NIPSCO) customers. The changes will be phased in over two steps to spread out the changes, with the remaining increase applied during the first quarter of 2025.

The price hike is a result of a settlement NIPSCO reached earlier this year with the Indiana Utility Regulatory Commission, which must approve requested price increases.

With the start of the new rates this month, the average residential natural gas customer using 72 therms per month will see an overall increase of approximately $5 per month (or 7.1 percent), NIPSCO said, noting that the company originally requested a larger increase of roughly $8 a month (or 10.6 percent).

“Customers expect safe, dependable natural gas service provided in the most cost-efficient manner possible,” said Vince Parisi, NIPSCO President and Chief Operating Officer. “This decision balances the need for adjusted rates and supports the continuous service and infrastructure improvements required to replace older parts of our system, reducing potential risks and improving the reliability and safety of our natural gas system.”

Specifically, the rate increase is needed to help NIPSCO meet new federal safety requirements for gas pipelines, the company said.

The utility also plans to make system upgrades to support economic development and job creation, along with infrastructure modernization and improvements that will directly benefit customers and communities, including an estimated $1.1 billion in investments through the end of this year, said NIPSCO.

Merrillville, Ind.-based NIPSCO is the state’s largest natural gas distribution company and the second-largest electric distribution company, serving approximately 859,000 natural gas and 483,000 electric customers across 32 counties. NIPSCO is part of publicly traded NiSource’s six regulated utility companies.

The change in natural gas base rates is related to the costs associated with delivering natural gas to customers and comprises a smaller portion of the bill, according to NIPSCO.

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