The state crushed Northern Indiana Public Service Co.’s plan to wipe out five utility hubs in Northwest Indiana in a ruling released Wednesday.

The Indiana Utility Regulatory Commission ruled in favor of a complaint filed by officials in LaPorte County and Michigan City against NIPSCO’s consolidation plan. The plan would have called for the elimination of local operating areas (LOAs) in Hammond, Crown Point, LaPorte, Michigan City and Plymouth. The LaPorte County commissioners and city of Michigan City filed a complaint in March 2002 claiming the move would cut 230 to 300 jobs.

LOAs are sites that NIPSCO uses to store utility materials to use for emergency repairs.

Mary Beth Fisher, IURC spokeswoman, said the commission was concerned about how eliminating the hubs would affect the quality of customer service.

“The commission basically ruled in favor of public interest,” Fisher said.

According to the 57-page ruling, NIPSCO said the elimination of the hubs would save the company about $140,000 a day in operation costs.

Tom Cuddy, spokesman for NIPSCO, declined to comment on the order until he has more time to review the ruling.

In 2002, NIPSCO announced plans to close five of its 12 Northwest Indiana substations and consolidate the operations to one facility in Gary. Initial settlements have since been reached between the five cities and NIPSCO, but the IURC had to make the final approval.

The order is good for the next three years in which NIPSCO is required to file annual reports to update the IURC on the progress of its hubs.

NIPSCO may appeal this order, Fisher said.