SOUTH BEND, Ind. -- The Northern Indiana Public Service Company electricity rates will increase overall by roughly $23 or 16.75 percent for residential customers using 672 kilowatts per month starting Tuesday, July 1.

The increase will be phased in multiple steps through the first quarter of 2026 to “spread out the changes to customers.”

NIPSCO, a natural gas distribution company that serves around 500,000 people in Northern Indiana, initially proposed a $32 or 22 percent overall rate increase but the adjustment was reduced.

After almost a year of review, the move was approved by the Indiana Utility Regulatory Commission on June 26. Since NIPSCO is regulated, the company cannot change rates or charges without approval of the IURC.

NIPSCO said the price increase will support more than $2 billion in capital investments to transition its electric generation “to a more balanced generating portfolio.”

Additionally, the company said it is investing $769.5 million in infrastructure improvements, technology advancements and other improvement projects to be completed by the end of 2025.

These improvements have lead to a 40 percent reduction of power outage durations and the replacement of over 300 miles of problematic underground cable, according to NIPSCO.

As part of the rate adjustment plan, a new bill payment assistance program for “income-qualified” customers will be implemented, fully funded by NIPSCO. The assistance program will be available beginning next year.

Actual projected bills may vary by customer usage and market prices