Newly Approved NIPSCO Gas Rates to Take Effect Beginning in August 2024

Balanced outcome will support safety and compliance, and infrastructure modernization that will benefit customers and communities

MERRILLVILLE, Ind.–(BUSINESS WIRE)–Northern Indiana Public Service Company LLC (NIPSCO) received a decision from the Indiana Utility Regulatory Commission (IURC) to adjust its gas rates, effective August 2024. Beginning in August, the newly approved rates will be phased in over two steps to spread out the changes to customers, with the remaining changes applied in 2025.

Just as investments are made in bridges, roads and other infrastructure in our cities, towns and communities, we must also make investments to put safeguards and checks in place that provide high levels of safety. These additional safeguards and checks come with an increase in costs. Federal pipeline safety requirements—that are beneficial for the safe operation and integrity of our gas system—have also increased since NIPSCO’s last base rate case. There are costs associated with satisfying these increased requirements.

“Customers expect safe, dependable natural gas service provided in the most cost-efficient manner possible,” said Vince Parisi, NIPSCO President and Chief Operating Officer. “This decision balances the need for adjusted rates and supports the continuous service and infrastructure improvements required to replace older parts of our system, reducing potential risks and improving the reliability and safety of our natural gas system.”

The newly approved rates will also allow for system upgrades to support economic development and job creation, along with infrastructure modernization and improvements that will directly benefit customers and communities – including an estimated $1.1 billion in investments through the end of 2024.

How will residential customer bills change?

As a regulated energy provider, 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 change in natural 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 securing the natural gas used by homes and businesses, and customers pay the same dollar-for-dollar cost NIPSCO pays. The cost of securing natural gas is one of the largest determining factors of gas customers’ bills.

The IURC decision follows a nearly year-long, extensive review process, including public input and a collaborative agreement with the Indiana Office of Utility Consumer Counselor, the NIPSCO Industrial Group, Citizens Action Coalition, Direct Energy Business Marketing and Steel Dynamics Inc.

Based on a review of the IURC’s decision, the average residential natural gas customer using 72 therms per month will see an overall increase of approximately $5 per month (or 7.1 percent), with the change being phased in over two steps beginning in August 2024 and in Q1 2025, no later than March 1, 2025. This change is lower than the initial proposed monthly increase of approximately $8 per month, or 10.6 percent.

Actual projected bill impacts may vary by customer – including nonresidential customers – depending on usage and future potential changes in market prices.

Notably, the settling parties agreed to an increase in NIPSCO’s contribution to the Universal Service Program, or the company’s Customer Assistance for Residential Energy Discount program, which provides additional discounts to customers enrolled in the Low Income Home Energy Assistance Program. NIPSCO’s contribution with this settlement will increase the reduction range from 11-26 percent to 15-32 percent providing more assistance to customers who need it most.

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, such as with:

• Safety enhancements via smart technologies, like Picarro, to allow for better potential leak detection and pipe inspections.
• Natural gas infrastructure modernization and upgrades including providing critical gas service to support industrial customers.
• Projects to support state and local economic retention, growth and job creation, including building out natural gas pipelines to support new business investment in our service area, creating new assessed value and jobs in local communities.
• Refined and expanded customer service, energy-efficiency and energy assistance programs, including bill payment and assistance programs for seniors, active-duty military and veterans.

Bill payment assistance and energy savings programs are available

Bill payment assistance programs are available for customers experiencing financial

difficulties – including those who are most vulnerable.

Beyond the existing state and federal energy assistance programs and moratorium on winter service disconnections, NIPSCO provides credit arrangements, budget plans and reduced deposits for eligible customers, including the following:

• 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. The program opens on Oct. 1 for online and mail-in applications. Customers can learn more and find out if they qualify at eap.ihcda.in.gov or by calling 2-1-1.
• 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. NIPSCO’s contribution with this settlement will increase the reduction range from 11-26 percent to 15-32 percent, depending on the same criteria used by the state in determining the level of assistance.
• Flexible Payment Agreements: 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.
• 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.
• The Emergency Rental Assistance Program: This program provides up to 18 months of rental and utility assistance for renters. Additional information can be found at https://www.in.gov/ihcda/homeowners-and-renters/rental-assistance/.
• 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.

As always, any customer experiencing difficulty with paying their bill – regardless of their income – is encouraged to contact our Customer Care Center Monday through Friday between 7 a.m. and 7 p.m. CT at 1-800-464-7726 to determine what help might be available to them. For more information on bill assistance, customers can visit NIPSCO.com/FinancialSupport.

In addition to 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.

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

About NIPSCO:

Northern Indiana Public Service Company LLC (NIPSCO), with headquarters in Merrillville, Indiana, has proudly served the energy needs of northern Indiana for more than 100 years. As Indiana’s largest natural gas distribution company and the second-largest electric distribution company, NIPSCO serves approximately 859,000 natural gas and 483,000 electric customers across 32 counties. NIPSCO is part of NiSource’s (NYSE: NI) six regulated utility companies. NiSource is one of the largest fully regulated utility companies in the United States, serving approximately 3.7 million natural gas and electric customers through its local Columbia Gas and NIPSCO brands. More information about NIPSCO and NiSource is available at NIPSCO.com and NiSource.com.

About NiSource:

NiSource Inc. (NYSE: NI) is one of the largest fully-regulated utility companies in the United States, serving approximately 3.3 million natural gas customers and 500,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. The mission of our approximately 7,400 employees is to deliver safe, reliable energy that drives value to our customers. NiSource is a member of the Dow Jones Sustainability – North America Index, has been named as one of TIME Magazine’s World’s Best Companies and is on Forbes lists of America’s Best Employers for Women and Diversity. Learn more about NiSource’s record of leadership in sustainability, investments in the communities it serves and how we live our vision to be an innovative and trusted energy partner at www.NiSource.com. NI-F

Forward-Looking Statements

This Press Release contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of those factors could cause actual results to differ materially from those projected. Forward-looking statements in this press release include, but are not limited to, statements concerning plans, strategies, objectives, expected performance, expenditures, recovery of expenditures through rates, and any and all underlying assumptions and other statements that are other than statements of historical fact. Expressions of future goals and expectations and similar expressions, including “may,” “will,” “should,” “could,” “would,” “aims,” “seeks,” “expects,” “plans,” “anticipates,” “intends,” “believes,” “estimates,” “predicts,” “potential,” “targets,” “forecast,” and “continue,” reflecting something other than historical fact are intended to identify forward-looking statements. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially.

Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed in this Press Release include, among other things: our ability to execute our business plan or growth strategy, including utility infrastructure investments; potential incidents and other operating risks associated with our business; our ability to work successfully with our third-party investors; our ability to adapt to, and manage costs related to, advances in technology, including alternative energy sources and changes in laws and regulations; our increased dependency on technology; impacts related to our aging infrastructure; our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses; the success of our electric generation strategy; construction risks and supply risks; fluctuations in demand from residential and commercial customers; fluctuations in the price of energy commodities and related transportation costs or an inability to obtain an adequate, reliable and cost-effective fuel supply to meet customer demand; our ability to attract, retain or re-skill a qualified, diverse workforce and maintain good labor relations; our ability to manage new initiatives and organizational changes; the actions of activist stockholders; the performance and quality of third-party suppliers and service providers; potential cybersecurity attacks or security breaches; increased requirements and costs related to cybersecurity; any damage to our reputation; the impacts of natural disasters, potential terrorist attacks or other catastrophic events; the physical impacts of climate change and the transition to a lower carbon future; our ability to manage the financial and operational risks related to achieving our carbon emission reduction goals, including our Net Zero Goal; our debt obligations; any changes to our credit rating or the credit rating of certain of our subsidiaries; adverse economic and capital market conditions, including increases in inflation or interest rates, recession, or changes in investor sentiment; economic regulation and the impact of regulatory rate reviews; our ability to obtain expected financial or regulatory outcomes; economic conditions in certain industries; the reliability of customers and suppliers to fulfill their payment and contractual obligations; the ability of our subsidiaries to generate cash; pension funding obligations; potential impairments of goodwill; the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation; compliance with changes in, or new interpretations of applicable laws, regulations and tariffs; the cost of compliance with environmental laws and regulations and the costs of associated liabilities; changes in tax laws or the interpretation thereof; and other matters set forth in Item 1, “Business,” Item 1A, “Risk Factors” and Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, some of which risks are beyond our control. In addition, the relative contributions to profitability by each business segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time.

All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to the future results over time or otherwise, except as required by law.

Contacts

Tara McElmurry

NIPSCO Communications Manager

(219) 616-9113