NIPSCO, Indiana’s largest natural gas and second-largest electric company, plans to raise its average electricity bill by $32 a month — a proposal that would significantly increase costs for its customers statewide. If approved, the hike would begin in the fall of 2025.
For Gary residents, especially those on fixed incomes, the proposed increase adds to growing concerns over rising utility costs. At a recent public session hosted by the Citizens Action Coalition at the Gary Public Library, residents voiced frustrations over NIPSCO’s rates, which they say are unaffordable, and the lack of alternative providers.
The stakes feel personal for many, like Lenora Gordon, a Gary resident struggling to pay her $200 bill with another increase looming: “The increase will be hurtful to a lot of people; with inflation and everything else going up, our people’s incomes are not.”
In Gary, the median household income is less than $37,000 a year, according to the U.S. Census Bureau. On average, Black, elderly, and low-income households face a 43% higher energy burden than non-Black households, according to the American Council for an Energy-Efficient Economy.
Gordon said high bills often overshadow care for those most vulnerable, like her 69-year-old godmother, who relies on oxygen during the winter.
“Every winter, she has issues. She’s on oxygen, and they cut her power off. One time, she had to come over to my house for a little while. Other than that, she just sits there in the cold,” Gordon said. “If she knew about this, she would voice her opinion with her cane, in her chair with her oxygen tank. She’s going to put the whole show on!”
NIPSCO’s proposal follows recent rate hikes, including a $5.40 monthly gas increase earlier this year and a $12.37 monthly increase in 2023. The average NIPSCO electricity bill is $132 for 729 kilowatt-hours per month, according to a NIPSCO representative. NIPSCO said the proposed rate increase is necessary to fund upgrades to aging infrastructure and the transition from coal-fired power plants to renewable energy sources like solar and wind.
Meanwhile, NIPSCO’s 483,000 electric customers in Northwest Indiana are already paying the highest rate of any investor-owned or municipal utility company, according to data by the Citizens Action Coalition, Indiana’s oldest consumer and environmental advocacy organization.
While NIPSCO proposes a $32 increase, an analysis by the Citizens Action Coalition suggests that, with additional charges, customers may see a monthly increase closer to $45. NIPSCO has yet to confirm the findings of this analysis.
Ben Inskeep, director of the Citizens Action Coalition, called the proposal a “huge concern,” especially for low-income communities that NIPSO serves.
“This is a very big issue because NIPSCO is also the utility that has the highest electric bills in the state of Indiana right now,” he said.
This translates to daily concerns over the affordability of heat and electricity. Utility affordability is the third-highest cause of stress in Lake County, according to a 2024 Franciscan Health’s Community Health Needs Assessment. As temperatures drop in the winter, it puts more stress on customers to find ways to stay warm.
For Gordon and others, these mounting costs have sparked a call to action. She said that too many people in Gary are left sitting in the cold, afraid to turn on their heat due to high bills.
“We need to voice our opinion; I believe if we came together as a people, and we sent out word for the community to come out, I believe that wouldn’t happen because if you don’t speak, then it’s going to happen,” she said.
A public field hearing has been scheduled for 5 p.m. CT on Thursday, Dec. 5, at the Carter G. Woodson Branch of the Gary Public Library, 501 S. Lake St., where residents can voice their concerns about the proposed changes. Those unable to attend can submit written comments on the Indiana Utility Regulatory Commission website.
NIPSCO has also proposed a new program to assist electric customers who qualify for the federal Low-Income Home Energy Assistance Program (LIHEAP). The plan includes a flat discount of $15 to $26 on monthly electric bills from July through October. Additional measures include eliminating convenience fees for customers using third-party payment sites and phasing out a $90 reconnection fee for remote disconnections and reconnections.