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In a July 12, 2016 order, the IURC approved a seven-year plan for electric transmission, distribution and storage system improvements for Northern Indiana Public Service Company (NIPSCO), including incremental rate recovery of those costs as the projects proceed.
While the utility had originally proposed a $1.33 billion plan, the Commission's order approved a settlement agreement that will cap rate recovery for the plan's projects at $1.25 billion. For a summary of the agreement, please see the March 25, 2016 news release.
The OUCC issued a February 17, 2016 news release to invite written consumer comments.
NIPSCO filed its request under a law (Senate Enrolled Act 560) passed by the Indiana General Assembly in 2013.
This proceeding is separate from NIPSCO's recent base rate case.
NIPSCO's first requested rate adjustment under the plan is pending. It would raise the monthly residential electric bill for a customer using 698 kWh by 23 cents (or by 34 cents for a residential customer using 1,000 kWh), under a proposed order agreed to by the OUCC, industrial customers, municipal governments, and NIPSCO.
Indiana Code 8-1-39 allows electric and natural gas utilities to submit 7-year infrastructure improvement plans for IURC approval. It requires the IURC to rule within 210 days once such a request is filed.
All public filings in the case are available by visiting the IURC's Electronic Document System and entering cause number 44733.
According to the utility's testimony and exhibits:
Previous NIPSCO request
The recent case was NIPSCO's second proposal for a 7-year electric system improvement plan. Its first request received IURC approval but is no longer in effect following further proceedings before the Indiana Court of Appeals and the IURC.
NIPSCO filed its original plan in July 2013, in IURC Cause No. 44370. In a separately filed case, IURC Cause No. 44371, NIPSCO requested establishment of the methodology for calculating rate recovery of future costs.
In a May 2015 settlement agreement, as described here, NIPSCO agreed to refund all money previously collected under the TDSIC tracker.
The IURC issued orders on remand in September and December 2015.
All filings in the cases are available by visiting the IURC's Electronic Document System and entering the appropriate cause number.
This page will be updated based on future developments.
NIPSCO has received approval of its 7-year natural gas infrastructure plan in a separate case.