(Merrillville, IN) - NIPSCO is looking to raise natural gas rates by an estimated 10.6%, or $8 a month for the average residential customer. This comes after the utility company raised its electrical rates by 10 percent in August.

 

NIPSCO is asking the Indiana Utility Regulatory Commission to approve the new rate hike to pay for items like modernizing its infrastructure, other system improvements, and economic development projects. A rate increase also would deliver higher returns to the utility's shareholders.

 

The company, a subsidiary of NiSource, plans to invest $1.1 billion through the end of next year.

 

“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,” said NIPSCO President Mike Hooper.

 

The public will get the chance to weigh in on the proposed rate hike, which state regulators will take about a year to review.

 

“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,” Hooper said.

 

The rate hike would apply to the cost of delivering natural gas.  NIPSCO is asking for a two-phase rate hike that would fully go into effect by March 2025.