IN.gov - Skip Navigation

Note: This message is displayed if (1) your browser is not standards-compliant or (2) you have you disabled CSS. Read our Policies for more information.

OUCC > Electric > Cases of Note > NIPSCO TDSIC Case NIPSCO TDSIC Case

Northern Indiana Public Service Company (NIPSCO) has filed a new case with the Indiana Utility Regulatory Commission (IURC), seeking approval of a long-term plan for electric transmission, distribution and storage system improvements, including incremental rate recovery of those costs as the projects proceed. The utility refers to the program as its Electric Infrastructure Modernization Plan.

NIPSCO's request is the first to be filed under a new law (Senate Enrolled Act 560) passed by the Indiana General Assembly in 2013.

Consumers are invited to send comments on the plan and requested future rate increases to the Indiana Office of Utility Consumer Counselor (OUCC).

 

A brief summary of the new law

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.

  • Once a 7-year plan receives IURC approval, the utility may request incremental rate increases every 6 months to pay for the projects. The rate adjustment is referred to as the Transmission, Distribution and Storage System Improvement Charge (TDSIC). The IURC has 90 days to rule on such a request.

  • TDSIC rate increases are limited to no more than 2 percent of total retail revenues each year.

  • The TDSIC rate mechanism (or tracker) allows the utility to recover 80 percent of the costs as they are incurred. The remaining costs are deferred until the utility's next base rate case, which must be filed before the end of the 7-year period.

 

NIPSCO's request

NIPSCO filed its 7-year system improvement plan on July 19, 2013. The plan is pending as IURC Cause No. 44370. In a separately filed case, IURC Cause No. 44371, NIPSCO seeks establishment of the methodology for calculating rate recovery of future costs with the first rate increase expected in 2015.

According to the utility's testimony and exhibits:

  • The 7-year plan has a total of about $1.07 billion in capital improvement projects, including $314.2 million in transmission projects, $544.5 million in distribution projects, and $214 million in overhead and economic development.

  • Projects throughout NIPSCO's electric service territory include new transmission and distribution lines, new substations, upgrades to existing lines and substations, and replacement of aging infrastructure (such as poles, transformers, etc.).

  • If approved by the IURC, construction would start in 2014 with an electric rate increase of approximately 0.4 percent in 2015. The annual rate increase amounts would grow over the course of the plan, reaching 1.7 percent in 2020. The average annual percentage increase over the 7-year term is 0.9 percent.

NIPSCO's natural gas system and rates are not at issue in these cases.

 

Key documents

NIPSCO's July 19, 2013 filings include:

All filings in both cases are available by visiting the IURC's Electronic Document System and entering the appropriate docket number.

 

OUCC review, timeline & consumer input

The OUCC is reviewing NIPSCO's 7-year plan and anticipates filing testimony with the IURC on October 11, 2013. The IURC has until February 14, 2014 to issue an order.

Written consumer comments are invited and can be sent to the OUCC by mail, fax or email, or through the agency's website. Comments received by October 4, 2013 will be filed with the IURC for inclusion in the case's formal evidentiary record. For more information, please see the OUCC's September 6, 2013 news release.

 

This page will be updated based on future developments.

9-6-13

 

 

Stay Connected

You are leaving the IN.gov website. By clicking OK, you will be taken to a website that is not affiliated with the State of Indiana and may have different privacy and security policies. The State of Indiana is not responsible for, and does not endorse, guarantee, or monitor content, availability, viewpoints, products, or services that are offered or expressed on this non IN.gov portal website.