Date posted online: Thursday, April 26, 2007
Panel begins work on NIPSCO takeover bill
NIPSCO -- Other utility effort could determine fate
INDIANAPOLIS | House-Senate negotiators began work Wednesday on legislation to study creating a multicounty public power authority to buy out NIPSCO and run the utility's power plants and electric grid.
The effort, led by state Rep. Scott Pelath, D-Michigan City, has strong legislative support. But the legislation, House Bill 1824, also would make more contentious changes in state regulations that apply to all Indiana power providers.
"I've had a number of people tell me that this bill is sort of the gift of finest wheat," Pelath said. "And some others tell me it's completely chaff."The Senate added provisions encouraging power companies to invest in pollution-control equipment, but consumer advocates worry the effort could push exorbitant costs onto rate payers.
Similar concerns have been raised about another provision allowing utilities to recoup the cost of new technologies aimed at reducing power consumption that supporters say would stave off costly construction of new power plants. A company could, for instance, offer to install more energy-efficient water heaters and recover some of the cost from all rate payers.
Another contentious provision would require all utilities to derive at least 4 percent of electric supply from wind power and other renewable sources by 2017. Some observers are upset that southern Indiana coal would, in some cases, qualify as a renewable source.
The NIPSCO portion of the legislation would allow county officials to instruct the Indiana Utility Regulatory Commission to study what it would take to move the utility toward public ownership. NIPSCO charges the steepest electric rates in the state, and some lawmakers and consumer advocates worry that a rumored sale of the utility could push consumer bills even higher.
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