INDIANAPOLIS -- A measure guaranteeing state scrutiny of Northern Indiana Public Service Co.'s finances was dealt a blow Thursday.

The Senate Utilities & Regulatory Affairs Committee did not vote on Sen. Karen Tallian's amendment to mandate a scheduled 2008 rate case for the utility even if it is sold before then. While lauding Tallian's work as a "tireless advocate" for NIPSCO customers, Committee Chairman Brandt Hershman blocked a vote on her amendment to House Bill 1824, a bill that would allow a study of the feasibility of making

NIPSCO a publicly owned utility.

"The question is, 'Would

(Tallian's amendment) imperil what is otherwise a reasonable sale?' " Hershman asked after the meeting.

In 2001 the Indiana Utility Regulatory Commission opened an investigation into NIPSCO's rates and profit reports. The investigation ended when

NIPSCO entered into an interim agreement whereby it would issue a rebate and submit to a rate case in 2008.

NIPSCO is rumored to be up for sale, though company officials have declined comment on the situation.

Tallian worries that without legislation, such a sale to another retail utility company could preclude the IURC rate case from going forward. "NIPSCO hasn't had a rate case since 1986," Tallian said. "It's about time the company has one."

HB 1824 was passed out of the Utilities committee, with several other amendments attached. Hershman promised to include Tallian as part of a conference committee on the bill, which will continue to work on compromise language acceptable to both the House and the Senate.

Tallian said she was disappointed, because she believed there were enough votes on the Utilities committee to pass her amendment.

But she said she was hopeful a mandated rate case will make its way into the final language of HB 1824.

 

Contact John Byrne at (317) 631-7400 or jbyrne@post-trib.com