Indiana lawmakers voted Monday against requiring the Northern Indiana Public Service Co. to undergo a rate and financial review.

The review would have would have forced NIPSCO to take part in a feasibility study by the Indiana Utility Regulatory Commission that would examine the utility company's rates before NIPSCO is sold. The potential sale date of NIPSCO's electric division has not yet been decided.

NIPSCO has not had a full rate hearing in 20 years, and while a rate hearing is scheduled for next year, state Sen. Karen Tallian said her amendment would have ensured the rate case would have happened before a sale, which could help deal with future rate hikes.

"The risk is that the new utility owner could add acquisition costs into the equation during the 2008 rate case," Tallian said. "That cost could be used to inflate proposed consumer rates."

NIPSCO spokesman Tom Cuddy said NIPSCO is required to undergo annual reviews by the Indiana Utility Regulatory Commission annually, and said there is no need for additional reviews.

"We are perhaps one of the most regulated companies in Indiana, and we submit to those reviews on an annual basis," Cuddy said.

 

Contact Danielle Braff at 648-3079 or dbraff@post-trib.com