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NIPSCO Electric Rates

Pending Cases of Note

IURC CAUSE NO. 38706-FAC 136

A FUEL COST ADJUSTMENT TO BE APPLICABLE DURING THE BILLING CYCLES OF NOVEMBER AND DECEMBER 2022, AND JANUARY 2023.  RATEMAKING TREATMENT FOR THE COSTS INCURRED UNDER WHOLESALE PURCHASE AND SALE AGREEMENTS FOR WIND ENERGY APPROVED IN CAUSE NOS. 43393, 45194, 45195, AND 45310, AND (3) APPROVAL OF A CORRECTION TO NIPSCO’S EARNINGS BANK UNDER IND. CODE § 8-1-2-42(d)(3).

View the petition here.

IURC CAUSE NO. 45505

IURC CAUSE NO. 45700

IURC CAUSE NO. 44733

TBC

Base Rates

Base rates cover most infrastructure and operating/maintenance costs and can only be changed through a rate case. Rate cases are legal proceedings before the Indiana Utility Regulatory Commission (IURC), in which the Indiana Office of Utility Consumer Counselor (OUCC) represents customer interests.

Current base rates for NIPSCO is currently pending before the IURC (Cause No. 45772. According to the July 2022 IURC survey of residential electric bills, NIPSCO base rates now make up approximately 87 percent of a typical NIPSCO residential electric bill.

The utility's previous base rates were approved in 2019.

Trackers

Indiana electric utilities credit and/or recover, separate, specific costs through rate adjustment mechanisms known as "trackers." Rate adjustments via trackers are reviewed by the OUCC and approved by the IURC on a quarterly, semi-annual, or annual basis.

Current trackers were re-set when NIPSCO’s current base rates were approved in 2019 and are still subject to adjustments every three, six, or 12 months.

Tracker filings are established with a five-digit cause number, and subdocket filings are used in each subsequent filing. Example IURC Cause No. 38707 was the case that established this tracker filing. The quarterly the filings that follow this case will have the name #38707-FAC1, #38707-FAC2 and so on.

The following, includes information about the types of approved trackers, not pending tracker cases which can be found at the bottom of this page or by visiting the visit the IURC's electronic document system and enter the appropriate cause number.

The Fuel Adjustment Clause (FAC) is a periodic rate adjustment that electric utilities to account for changes in the price of the fuel they purchase to generate electricity.

  • Rates per kWh increase up or down based on the cost of coal, natural gas, renewable energy, and other electric generation sources.
  • Utilities may not profit from these adjustments, but merely recover the price they have paid for fuel to generate power.
  • Utilities must receive IURC approval and OUCC review before passing these costs to consumers. These reviews are done quarterly, semi-annually or annually and bills will rise or fall based on the costs of fuel in the market.

NIPSCO files its FAC quarterly under IURC Cause No. 38706. Pending FACs can be found on the "Pending Cases of Note" section of this website.

The most recent adjustment (Cause No. 38706-FAC136*) is currently pending before the IURC. It will affect bills for August 2022-October 2022.

*FAC 136 saw increased fuel cost averages for Dec. 2021 - Feb. 2022 and received authority to recover those costs over a 12-month period rather than the 6-month period Duke Energy proposed. This will result in an approximate 16% increase to the average residential customer bill.

The Transmission, Distribution, & Storage System Charge (TDSIC) allows electric and natural gas utilities to seek IURC approval of long-term infrastructure plans. If a utility’s plan is approved, it is then allowed to request rate increases every 6 months to cover the costs of projects in the plan.

  • TDSIC rate increases are limited to no more than 2 percent of a utility's total retail revenues.
  • 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 plan's term.

NIPSCO typically files it's TDSIC on a semi-annual (6 month) basis under IURC Cause No. 44733.

The most recent tracker can be found by going to the IURC's electronic document system and entering Cause No. 44733. Then click the hyperlink for the most recent  case.

Demand side management (DSM) programs allow for utilities to recover costs on energy efficiency programs.

  • Allow consumers to voluntarily work with their utilities to modify their electrical usage during peak periods.
  • Reduce overall expenses, reduce the possibility of blackouts, and encourage energy efficiency.
  • Include efforts by large industrial customers and air conditioning direct load control programs for residential customers.

NIPSCO files its current DSM on an annual basis under IURC Cause No. 43618. The most recent tracker (Cause No.43618-DSM 17) is currently pending for IURC approval

The Resource Adequacy (RA) Adjustment is a rider that covers costs for generators that are used to respond to a spike to electric demand for a particular moment.

  • This tracker also allows the utility to recover costs related to participation in MISO requirements. Which allows MISO participants to purchase capacity to meet resource adequacy requirements
  • If NIPSCO were to have excess amount of generated electricity and garners income from it, then it will be credited to customers in the RA Adjustment Rider
  • If NIPSCO does not meet that obligation and has to make more purchases to meet those requirements, those costs will be recovered from customers in the RA Adjustment Rider

NIPSCO files its current RA on a semi-annual basis under IURC Cause No. 44155. The most recent tracker (Cause No. 44155-RA 22) is currently pending for IURC approval.

Regional Transmission Organization (RTO) trackers cover the costs of regional transmission operators (RTOs), which control flows for the power grid over large geographic areas.

The RTO serving most Indiana electric utilities, including NIPSCO is the Midwest Independent Transmission System Operator (Midwest ISO), based in Carmel, Indiana.

  • Are recovered through FAC or other scheduled filings that require IURC approval and OUCC review.
  • Utilities are not allowed to profit on RTO cost pass-throughs.

DIPSCO files its current RTO on a semi-annual basis under IURC Cause No. 44156. The most recent tracker (Cause No. 44156-RTO22) is currently under review.

The Federally Mandated Cost Adjustment (FMCA) tracker requires utilities to file a certificate of public convenience and necessity for a federally mandated project to be approved by the Commission.

  • The projects must be related, directly or indirectly, to federal requirements.

NIPSCO files its current FMCA on a semi-annual basis under IURC Cause No. 44340. The most recent tracker (Cause No. 44340-FMCA 13) received IURC approval on Jul. 29, 2020.

The Green Power Rider allows NIPSCO to recover costs for allowing customers to elect a certain percentage of their electricity to be offset with renewable energy.

  • Customers interested in this plan may elected 25%, 50%, or 100% of their energy consumption be attributable to Green Power
  • Customers may contact NIPSCO customer service to begin the process of voluntarily electing to have their energy supplied by Green Power

NIPSCO files its current Green Power Rider on an annual basis under IURC Cause No. 44198. The most recent tracker (Cause No. 44198- GPR 14) received IURC approval on May 15, 2022.

Taxes

The seven percent state sales tax applies to all Indiana utilities.

Cases

Pending Cases of Note

Other Cases

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