Hundreds wait to be heard on NIPSCO rates
By Keith Benman
keith.benman@nwi.com, (219)
933-3326 | Wednesday, March 04, 2009
"I'm trying," said 91-year-old Bennette Robertson, holding up a $1,444.70 NIPSCO gas and electric bill before four members of the Indiana Utility Regulatory Commission. "You want me to pay more?"
Robertson was one of about 320 who filled the Savannah Center auditorium at Indiana University Northwest to capacity for the 5 p.m. start of the IURC field hearing. A similar number had to be barred from the hearing by campus police until seats opened up.
Marva Westley still was outside in the Savannah Center hallway at 6:15 p.m. waiting to get into the auditorium. She said the hearing should have been held in the much larger Genesis Convention Center in Gary.
"This is just to discourage people," she said.
Pastor Willie Johnson, of Mission of Jesus Christ Church, was among five bus loads of church members brought by the Twin Cities Ministerial Alliance. Most all of them had to wait hours to be let in. They spent some of their wait time singing "We Shall Overcome." The singing later turned to chants of "Can't hear out here."
"Our parishioners are here to show the outrage they have with NIPSCO that they would try to raise their bills 15 percent," Johnson said. "Most of our parishioners cannot afford it now."
Johnson and other pastors repeatedly made the point there should be no rate increase while people are losing homes and jobs in the depths of a recession.
IURC spokeswoman Danielle Dravet said the commission was letting people in the hallway fill out forms for written comments. She said the commission had placed no time limits on the hearing so all eventually could get in.
NIPSCO CEO Eileen O'Neill Odum attended the hearing with a large contingent of her staff. It is rare for a utility CEO to show up at IURC field hearings in northern Indiana.
NIPSCO officials did not comment before the commission, but did answer questions from reporters.
"We know many of our customers have a keen interest and concern with this rate case," Odum said. "So I am here ... to better understand what customer concerns might be."
In a prepared release, Odum said it has been 21 years since NIPSCO has sought a base electric rate increase from the IURC.
NIPSCO spokesman Nick Meyer said it is important for people to realize that the 15.6 percent rate increase will apply only to the electric portion of a customer's bill and not the natural gas portion.
The IURC already has conducted evidentiary hearings with NIPSCO and consumer groups in Indianapolis and will hold more later this year. It may not issue a final order in the case setting NIPSCO rates until next year.
Dravet said the comments gathered Tuesday would be a critical part of the evidence considered by commissioners. The commission has five members.
The hearing inside the Savannah Center auditorium started with a succession of officials from local chambers of commerce and other community organizations praising NIPSCO as a good corporate citizen.
"NIPSCO has been a tremendous partner in trying to work with communities to create jobs," said Rex Richards, president of the Valparaiso Chamber of Commerce.
His comments and those of others in praise of the utility were met at times with muffled boos. As the night went on, the words of praise for NIPSCO became fewer and fewer.
In addition to more than 100 people speaking directly to the commission, the IURC took in hundreds of written comments during the night, Dravet said.
Business people like David Christian, owner of American Metal Products, of LaPorte, also came to protest the increase.
"I believe NIPSCO has cost increases to deal with just like anyone else," Christian said. "But my business, just like those across the country, has been forced to tighten its belt."
American Metal Products currently pays NIPSCO about $200,000 per year for electricity, Christian said. With the proposed rates set to be tied to how much electricity demand there is at given times of the day, he said the company's annual bill could easily increase by $50,000 or more. Here is how NIPSCO says an average residential customer's bill would be
affected by its proposed electric rate increase:
Average use: 735 kilowatts
Current bill: $81.68
Proposed bill: $94.44
Increase amount: $12.76
Percent increase: 15.62 percent
Copyright © 2009 nwi.com