Indiana’s utility commission exceeded its authority
when it ordered NIPSCO to keep two service hubs in Lake
County open, the utility says.
The Northern Indiana Public Service Co. is asking the
Indiana Utility Regulatory Commission to reconsider its
Aug. 10 order, which told NIPSCO to keep its Hammond and
Crown Point operating headquarters open.
It also is appealing the IURC’s requirement that
NIPSCO file annual service-interruption reports for the
next three years.
NIPSCO’s appeal contends that the Aug. 10 order is
the first time the IURC has tried to control a utility
that is not having operation or management difficulties.
The order “is telling NIPSCO that it cannot manage
its work force and operations ... in a manner that is
responsive to change,” NIPSCO says.
NIPSCO has been trying consolidate its Northwest
Indiana service hubs for several years, but a coalition
of employee unions and government bodies in Lake and
LaPorte counties have opposed the plan.
The original plan included closing hubs in Michigan
City, LaPorte and Plymouth, but those cities reached
compromise agreements with NIPSCO in 2003.
The IURC has been considering the case since 2002.
If NIPSCO doesn’t win its appeal to the IURC, it can
go to the Indiana Court of Appeals.
LaPorte County attorney Shaw Friedman said Thursday
that the plan’s opponents will “vigorously oppose”
NIPSCO’s IURC appeal.
“Clearly, NIPSCO is concerned about the fact that
this commission has made some history,” Friedman said,
“in determining that it will act before service and
lives are in jeopardy, and make sure service is
maintained.”
NIPSCO has said it needs to consolidate service hubs
to save money. It says service employees can respond to
after-hours calls more quickly and efficiently by taking
their trucks home and answering calls from there — a
service model that has been used for years in NIPSCO’s
rural territories.
NIPSCO also said it successfully combined its Warsaw
and Goshen operating headquarters into one before
proposing consolidations in LaPorte and Lake counties.
Opponents say the closings would decrease service
reliability, particularly in heavily populated areas.
“This has always been about public safety,” said
David Chlebek, vice president of United Steelworkers
union Local 12775, representing NIPSCO production
workers. That local and Local 13796, which represents
clerical workers, have opposed the cuts.
The Crown Point service hub, which NIPSCO wants to
consolidate into one in Gary, serves an area that
extends into Newton and Jasper counties, Chlebek said.
“South Lake County is one of the hottest growth areas
in the country,” Chlebek said. “Why would you want to
take away a facility that also helps contractors?”
NIPSCO’s appeal notes that the IURC ruling came
around the time the state’s Bureau of Motor Vehicles was
closing license branches in Chesterton and Lowell and
downsizing Gary’s.
“The parallels between the consolidation of license
branches and NIPSCO’s attempts to consolidate Operations
Centers are striking,” the utility’s appeal says.
“From NIPSCO’s perspective, it is perfectly
understandable that the State would want to explore new
ways of saving money, while continuing to provide
adequate service to the public. NIPSCO wants a similar
opportunity.”
Contact Tim Zorn at 648-3073 or at
tzorn@post-trib.com