The Lake County Council passed a resolution Tuesday to urge the state legislature to pass a bill to disclose the specific fees hidden in utility bill delivery charges.
The resolution calls on the Indiana General Assembly to enact legislation requiring electric and natural gas utilities operating in Indiana to provide a clear, itemized breakdown of all components of the delivery charge on customer bills.
The council further urged the Indiana Utility Regulatory Commission to adopt rules, guidelines or tariff requirements to ensure the itemized breakdown appears in a standardized, consumer-friendly format on monthly bills. The resolution passed the council in a 6-0 vote.
Dozens of Northwest Indiana residents protested outside of the Northern Indiana Public Service Company’s Hammond district office on Feb. 1. Most of the protesters were concerned with high gas delivery charges, according to Post-Tribune archives.
In June, NIPSCO received Indiana Utility Regulatory Commission approval to increase electric rates by 16.75%, according to the utility’s website, and residential customers were expected to see an increase of about $23 per month. The rate changes began in July, and the utility company previously said that rate changes would be phased in “to help ease the impact,” according to Post-Tribune archives.
In July, the Citizens Action Coalition found that statewide electric utility bills have increased by more than $28 per month, or 17.5%. NIPSCO residential customers were hit hardest, with about a $50 per month, or 26.7% increase, in one year, according to Post-Tribune archives.
“At the NIPSCO protest in Hammond, I spoke with residents who desperately needed clarity on what exactly makes up those delivery costs. Like anyone purchasing a service, I want the breakdown clear: labor, fees, infrastructure, materials and so on,” said Council President Christine Cid, D-5th.
The Indiana Utility Regulatory Commission is tasked with ensuring that utilities are provided to Hoosiers at a reasonable cost, which is “what a rational person would pay in a competitive market,” Cid said.
“Unfortunately, NIPSCO operates as a monopoly. It’s the only choice for electric and gas service in our area,” Cid said. “In government, reasonable costs are defined to ensure proper stewardship of public funds. Excessive or unnecessary expenses, even if allowable, can be deemed unreasonable.”
The cost of utilities, food, medicine and housing should be affordable, Cid said. People shouldn’t have to “choose between groceries and sitting in the dark or without heat in the winter.”
“The IURC, as a public servant agency, has the responsibility to demand transparency and delivery costs in a way that’s simple and understandable,” Cid said.
Cid called for the members of the IURC, which she said has a budget of over $13 million and commissioners earning $158,000 each, to be elected.
State Rep. Chuck Moseley, D-Portage, proposed a bill during this session that would’ve allowed voters to elect IURC members. It did not advance beyond the session halfway point because it wasn’t heard in committee.
Councilman Randy Niemeyer, R-7th, said he received his utility bill Monday and it cost $2,800 to heat three small buildings for his business. The thermostats were set at 58 degrees, Niemeyer said, so “we’re not talking about heating it to summer temperatures,” he said.
“It’s impacting small business, residents and government. By the end of this year, we’re going to have to come up with probably a seven-figure number to pay some of the things that weren’t budgeted for NIPSCO,” Niemeyer said.
Niemeyer said there is “a serious transparency issue” with utility rates.
“I think all of us as ratepayers understand that improvement to infrastructure costs more money, but we want to know where that money is going,” Niemeyer said.
akukulka@post-trib.com
