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NIPSCO Seeks Natural Gas Rate Adjustment to Support System Modernization and Upgrades Driven by Federal Safety and Compliance Requirements

NIPSCO Seeks Natural Gas Rate Adjustment to Support System Modernization and Upgrades Driven by Federal Safety and Compliance Requirements

Plan supports: 

• Infrastructure modernization 

• Economic development and job creation-related projects 

• System improvements that directly benefit customers and communities 

MERRILLVILLE, Ind. –Northern Indiana Public Service Company LLC (NIPSCO), a subsidiary of NiSource  Inc. (NYSE: NI), has made a request with the Indiana Utility Regulatory Commission (IURC) to adjust its  natural gas base rates. The request is largely driven by federal safety and compliance regulations,  system upgrades to support economic development and job creation, and infrastructure modernization  and improvements that directly benefit customers and communities – including an estimated $1.1  billion in investments through the end of 2024. 

“Natural gas is a vital and critical resource to many – ranging from the manufacturing industry to home  heating,” said Mike Hooper, NIPSCO president. “Required investments such as these align with our focus  to continually improve customer service, enhance the availability and reliability of our natural gas  system, and provide an infrastructure to support new jobs and economic growth.” 

The proposed increase, filed with the IURC today, will undergo a thorough and nearly yearlong  regulatory review process that will allow for public input in order to strike the right balance of cost and  service for NIPSCO customers.  

“As a regulated energy provider, we have a responsibility to replace older parts of our system, reduce  potential risks, meet a host of federal compliance requirements, and improve the robustness and safety  of our system for our approximately 859,000 natural gas customers and the communities we serve  across 32 counties,” added Hooper. 

How will residential customer bills change? 

NIPSCO cannot change any rates or charges to its customers without the approval of the IURC. NIPSCO’s  electric rates are not affected by this request. 

The request to increase gas base rates is related to the costs associated with delivering natural gas to  customers and comprises a smaller portion of the bill. NIPSCO does not mark up the price it pays for the  natural gas used by homes and businesses, and customers pay the same dollar-for-dollar cost NIPSCO pays. The cost of natural gas is one of the largest determining factors of gas customers’ bills.  

Balancing the need for necessary system improvements while limiting the bill impact on customers is  important. Based on NIPSCO’s proposal, an average natural gas residential customer, as a result of this  case, would see an estimated overall increase of approximately $8 per month, or 10.6 percent above  projected bills at the time of implementation. Newly approved rates would be spread over two steps,  with the second step occurring no later than March 2025. Actual projected bill impacts for commercial  and industrial customers may differ as it will depend on usage, rate type and class.  

Learn more about NIPSCO’s proposal at NIPSCO.com/2024gasrates. 

Improved service to customers 

Service to customers has continued to improve, and NIPSCO has furthered its commitment to customers  in several ways in recent years, including: 

• Safety enhancements: 

  • o Introducing smart technologies that allows for better detection of potential leaks that need  to be addressed and the inspection of pipes to detect abnormal pipe conditions  o Being among the industry leaders for emergency response times  

• Natural gas infrastructure upgrades and modernization, including: 

o Natural gas expansion projects that included the installation of 26 miles of new 24” natural  gas steel pipeline and 7.75 miles of new 30” natural gas steel pipeline 

o Natural gas upgrade to provide critical gas service to support industrial customers  

• Projects that support state and local economic retention, growth and job creation, including: o Modernization and upgrade of natural gas lines and regulator stations in order to continue  to meet the needs of large employers across northern Indiana 

o Build out of natural gas pipelines to support new business investment in our service  territory, creating new assessed value and jobs in local communities, for example: ▪ Approximately 18.5 miles of 24” steel pipeline to support StarPlus Energy JV in  Kokomo, Ind., a $3.1 billion investment creating 1,300 jobs in Phase 1. Phase 2  

announced in Oct 2023, to invest an additional $3.2 billion and create 1,400 

additional jobs. 

• Refining and expanding customer service, energy efficiency and energy assistance programs,  including:  

o Expanded bill payment assistance programs for low-income customers, including seasonal  SILVER (seniors) and SERV (active-duty military and veterans) 

o Live chat and Chatbot functions to assist customers seeking information 

o Enhanced NIPSCO Mobile App features  

Help is available 

Customers who are experiencing financial difficulties, regardless of their situation, are always  encouraged to visit nipsco.com/assistance or call NIPSCO’s Customer Care Center at 1-800-464-7726 as  soon as possible to determine what options might be available. Some of those solutions include: 

-more-

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Low Income Home Energy Assistance Program (LIHEAP): LIHEAP support is available to  households that are at or below 60 percent of the State Median Income (SMI). Customers can  learn more and find out if they qualify by visiting eap.ihcda.in.gov or calling 2-1-1. Applications  are taken through May 20, 2024, at 5p.m. EST.  

Customer Assistance for Residential Energy (CARE) Discount Program: In addition to the  assistance available through LIHEAP, the NIPSCO CARE program is designed to provide further  bill reductions to LIHEAP-approved customers. Once enrolled in LIHEAP, customers are  automatically enrolled in the program, and reductions range from 11 to 26 percent, depending  on the same criteria used by the state in determining the level of assistance. 

Flexible Payment Plans: NIPSCO has expanded its payment plan agreements to offer its most  flexible payment plans to customers that need financial support, including three-, six- and 12- month plans. Customers can learn more and enroll at NIPSCO.com/PaymentPlans.   

Indiana Emergency Rental Assistance (IERA) Program: IERA provides financial assistance for  rent and utility payments for Indiana residents whose income has been negatively impacted by  the pandemic. Customers can learn more and find out if they qualify by calling 2-1-1. 

Township Trustees: A limited amount of energy assistance funds are available through local  Township Trustee offices. NIPSCO customers are encouraged to contact their local Township  Trustee to see what help may be available. 

Budget Plan: The budget plan is a free service to all NIPSCO customers to help manage their  monthly energy bills by spreading out gas costs over an entire year. Learn more at  NIPSCO.com/budget.  

For more information on billing options and payment assistance, visit NIPSCO.com/assistance.  Customers looking to quickly find information 24 hours a day, seven days a week, can use NIPSCO’s chat  feature located in the bottom right-hand corner of its website (NIPSCO.com) or via the mobile app.  Customers may also contact the NIPSCO Customer Care Center at 1-800-4-NIPSCO Monday through  Friday, 7 a.m. to 7 p.m. CT. 

In addition to offering a variety of payment assistance options, NIPSCO offers a number of energy efficiency programs to help lower energy usage and bills. Visit NIPSCO.com/Save for more information  on available programs and other ways to save.