NIPSCO loses service-hub appeal

Oct. 21, 2005 

By Lisa Shidler
Post-Tribune staff writer

NIPSCO has again struck out in its attempts to close service operating hubs in Northwest Indiana.

The Indiana Utility Regulatory Commission on Wednesday upheld an earlier ruling that Northern Indiana Public Service Co. must keep its Hammond and Crown Point operating headquarters open. NIPSCO had asked the government agency to reconsider its earlier order.

This has been a contentious issue since the company announced plans to close service hubs in 2002.

NIPSCO spokesman Tom Cuddy said the utility is considering whether to appeal the ruling. “We’re certainly disappointed, and we’re going to continue to review the order and explore our options,” Cuddy said.

Meanwhile, union officials who have been fighting NIPSCO over the hubs said they’re thrilled with the commission’s decision. They’ve maintained that closing the service hubs would harm customer service.

“Once again, our argument was flawless in the fact that it was a public safety issue and the commission did understand that and reaffirmed it,’’ said David Chlebek, vice president of United Steelworkers Local 12775, which represents

NIPSCO production workers.

In its most recent order, the commission said it believed NIPSCO’s plan could harm customer service.

“We find that modifying our final order to allow NIPSCO to proceed with a consolidation model, that we determined was based on incomplete review and development, and wait for negative impacts to service quality to occur, would not represent responsible regulatory oversight,” the order said.

In the ruling, the commission said NIPSCO may disagree with its decision but the company has no basis to claim that the commission “ignored evidence presented by any party.”

“The final order issued in this cause is the product of several days of hearings and hundreds of pages of pre-filed testimony,’’ the order said. “The final order in this cause is a lengthy, detailed, and thorough analysis of the complex issues presented in this matter.”

NIPSCO had argued that the government agency over-stepped the boundaries of its authority.

The IURC also clarified its earlier ruling that NIPSCO should file annual reports for three years that address electric outages.

Opponents say the closings would decrease service reliability, particularly in heavily populated areas. The company has argued that having area service workers stationed from their homes will increase service.

LaPorte County Commissioners President Marlow Harmon said in a statement that he hopes NIPSCO doesn’t appeal the decision.

“It’s time that NIPSCO accept this decision, stop using ratepayer money to pay lawyers to try to overturn it and get back to the job of trying to improve service, rather than seeking to reduce it,’’ Harmon said.

The original plan included closing hubs in Michigan City, LaPorte and Plymouth, but those cities reached compromise agreements with NIPSCO in 2003.

The IURC also declared that a settlement with Crown Point is not part of the deal because it was submitted after the case was closed.

“We didn’t consider it in this cause,’’ IURC spokeswoman Mary Beth Fisher said. “It would have to be brought to us under separate circumstances.”

Contact Lisa Shidler at 648-3076 or lshidler@post-trib.com