NIPSCO Industrial Group v. Northern Public Service Co.

At issue was the Indiana Utility Regulatory Commission’s preapproval of approximately $20 million in infrastructure investments, for which the Commission authorized increases to NIPSCO Industrial Group’s natural-gas rates under the mechanism implemented by the so-called “TDSIC” statute.Under the TDSIC statute, a utility can seek regulatory approval of a seven-year plan that designates eligible improvements followed by periodic petitions to adjust rates automatically as approved investments are completed. Some of the largest customers of NIPSCO, an energy utility with more than 800,000 customers in northern Indiana, opposed NIPSCO’s entitlement to favorable rate treatment under the TDSIC statute on the grounds that the disputed projects did not comply with the statute’s requirements. The Commission approved various categories of improvements but did not designate those improvements with specificity. The Supreme Court reversed the Commission’s order in part, holding (1) the TDSIC statute permits periodic rate increases only for specific projects a utility designates, and the Commission approves, at the outset in a utility’s seven-year-plan and not in later proceedings involving periodic updates; and (2) the Commission’s approval of “broad categories of unspecific projects defeats the purpose of having a ‘plan.’” View "NIPSCO Industrial Group v. Northern Public Service Co." on Justia Law