Introduction

This document outlines the proceedings and findings of the Indiana Utility Regulatory Commission (IURC) concerning the petition filed by Northern Indiana Public Service Company LLC (NIPSCO). NIPSCO sought authorization to modify its retail rates and charges for electric utility service, along with associated relief. The order details a comprehensive settlement agreement reached by NIPSCO and various intervenors, addressing key aspects of NIPSCO's operations and financial structure.

Key Aspects of the Settlement

The settlement agreement, a result of extensive negotiations, aims to resolve numerous issues presented in the case. It covers critical areas such as NIPSCO's revenue requirement, cost of service, rate design, and cost allocation. The agreement provides NIPSCO with an increase in rate revenue to meet its revenue requirement and earn a fair return on its investments, while also incorporating compromises to balance the interests of NIPSCO and its customers.

Financial and Operational Details

The document specifies the agreed-upon revenue requirement, which includes adjustments to depreciation and amortization expenses. It also details the projected net original cost rate base, capital structure, and a stipulated rate of return. The settlement reflects a compromise on the return on equity (ROE), setting it at 9.75%, which is considered a reasonable outcome balancing NIPSCO's financial needs with customer expectations for safe, reliable, and affordable service.

Public Participation and Review

The proceedings involved input from various stakeholders, including the Office of Utility Consumer Counselor (OUCC) and other intervenors, who presented testimony and comments. Public hearings were also conducted to gather input from customers. The Commission's findings are based on applicable law and the evidence presented throughout the case.