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Indiana Office of Utility Consumer Counselor

Indiana Office of Utility Consumer Counselor

OUCC > Electric > Key Cases By Utility > NIPSCO Electric Rates NIPSCO Electric Rates

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Base Rates | Trackers | Sales Taxes

 

Northern Indiana Public Service Company’s (NIPSCO’s) residential electric rates ranked second-highest among the utilities the IURC regulates as of July 1, 2016. *

Major components in a typical electric bill include base rates, trackers, and sales taxes.

Base Rates

Base rates cover most of a utility’s operating and maintenance costs. They made up about 83 percent of a typical NIPSCO residential electric bill as of July 1, 2016.

New base rates for NIPSCO's electric utility were approved on July 18, 2016. For more information, please click here

NIPSCO's previous electric base rates were approved in 2011. News releases from July 2011 and December 2011 offer a summary. The 2011 order resolved issues that were raised in NIPSCO’s previous electric rate case. The OUCC’s May 2009 news release summarizes the agency’s testimony.

Trackers

In addition to base rates, NIPSCO and other electric utilities recover and credit separate, specific costs through rate adjustment mechanisms known as "trackers." The OUCC reviews all tracker rate adjustments in IURC cases on a regular basis.

NIPSCO is authorized to use 7 electric trackers. They made up about 17 percent of a residential customer’s typical bill as of July 1, 2016.

Of particular interest, the IURC has approved a settlement agreement among NIPSCO, the OUCC, and additional parties on the utility's proposed 7-year plan for infrastructure improvements, including approval of a new tracker to recover the costs. The tracker is known as the Transmission, Distribution, and Storage System Improvement Charge (TDSIC) and received legislative approval in 2013.

Also, NIPSCO is offering energy efficiency programs following cases before the Commission.

Tracker Recovers Costs for Frequency IURC Cause No.
Fuel Adjustment Clause (FAC) Coal and other fuels Quarterly 38706
Transmission, Distribution & Storage System Improvement Charge (TDSIC) Projects in 7-year infrastructure plan Semi-Annual 44371
Environmental Cost Recovery (ECR) Emissions control equipment (including operations & maintenance) Semi-Annual 42150
Demand Side Management (DSM) Energy efficiency programs Semi-Annual 43618
Resource Adequacy Adjustment (RA) Capacity resources needed for system reliability Semi-Annual 44155
Regional Transmission Operator (RTO) Participation in Midcontinent Independent Transmission System Operator (MISO) Semi-Annual 44156
Federally Mandated Cost Adjustment (FMCA) Critical infrastructure protection Semi-Annual 44340

To view the IURC's files for tracker cases, click here and enter the appropriate docket number.

Sales Taxes

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

 

* Rankings and examples refer to monthly usage of 1,000 kWh in the IURC’s 2016 Residential Bill Survey.

7-20-16