Public speaks out on natural-gas rate hike

Jul 27, 2010 — The News-Sentinel

Aaron Organ

Jul. 27, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- Members of the state's Utility Regulatory Commission on Monday heard public opinion on Northern Indiana Public Service Co.'s intent to raise natural-gas rates, and dozens of people came to the Grand Wayne Convention Center hoping to sway the five-member panel.

That's not to say there was an outpouring of sentiment, with only seven people taking the podium to speak; five were representatives of community groups and organizations. Still, the majority of the comments denounced the rate increase.

In May, NIPSCO filed a petition with the regulatory commission to raise its base rates -- those cover maintenance and operating expenses, as well as capital projects -- from $6.36 to $20 a month. It would be the first rate increase for the company since 1988, and according to the utility, it would help offset a gradual but substantial drop in energy usage as customers have attempted to "go green" over the past 20 years.

The proposed increase would be balanced by a large drop in the gas delivery charge.

All told, the increase would see customers pay an extra $1.67 a month on average, according to NIPSCO. Some say that is too much, and that it is built to benefit the bigger users.

"It hurts smaller customers more so than it hurts industrial customers," said Michael Yann, one of two residents who spoke. "I feel that smaller customers are the customers who have trouble paying their bills. I feel that the larger users should pay a larger percentage."

Wayne Township Trustee Rick Stevenson agreed, saying his office has been inundated in a difficult economy with residents who need assistance to pay utilities. A rise in rates would be harmful to those already struggling, Stevenson said.

"As an advocate of the poor, I'm here to say that any more would be asking too much for the many poor people that we're facing now," said Stevenson.

Nancy Gemmer, a volunteer with AARP, said the elderly that her organization represents are especially vulnerable to utility rate increases because they respond by keeping their homes at unsafe temperatures or avoiding buying necessities, which can be dangerous.

Two proponents of economic development approved of NIPSCO's proposed rate increase. Both said clean, affordable energy is a draw for companies that would consider building roots in the region, and NIPSCO is a factor in that effort.

"The extent of this rate change assures reliable, steady investment in infrastructure," said John Sampson, who represented the Regional Economic Development Organization, which serves the Fort Wayne Allen County Economic Development Alliance.

That organization's executive director, Scott Naltner, agreed. Naltner said he supports a new rate structure because NIPSCO has been an important supporter for economic development in northeast Indiana.

The panel accepted public comment for 30 minutes; a 15-minute break was taken when no others wished to speak. After the break, public opinion was again sought, but no one approached and the hearing ended.

A similar hearing will be held in South Bend at 6 p.m. today.

Customers have through Aug. 9 to submit written comments to the state's Office of Utility Consumer Counselor for review by the URC. Those can be sent to the consumer counselor's Indianapolis offices or via e-mail at uccinfo@oucc.IN.gov.

The board will make a decision by Aug. 16.

Newstex ID: KRTB-0071-47373062