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High Indiana utility bills crisis has been building for years, advocates say
A consumer advocacy group says the rising NIPSCO bills in Indiana have been a crisis in the making for years due to state policy and the state's regulatory body not doing enough to protect consumers.
INDIANA - A consumer advocacy group calls what's happening with utility rates across Indiana an affordability crisis.
The group blames state lawmakers and state regulators for allowing utility companies like NIPSCO to raise rates, with little guardrails in place to protect consumers.
What we know:
Citizens Action Coalition said it's the result of policies 15 years in the making. They pointed to three bills lawmakers passed in 2011, 2013 and 2019 for creating a situation where families are having to choose between paying bills and buying groceries.
Kerwin Olsen is the executive director of Citizens Action Coalition who told Fox Chicago that NIPSCO has invested significant amounts of money into its infrastructure, like repairing and replacing pipelines, modernizing meters, but also investments into data centers. Olsen said those policies tie the hands of the Indiana Utility Regulatory Commission (IURC) to hold utility companies accountable for rate increases.
"I think those customers up there have just sort of experienced the perfect storm," said Olsen. "All the money that they spend, they collect from their customers. So they're experiencing the culmination and the pancaking of significant investment with favorable state laws."
After Fox Chicago has brought you several stories from Northwest Indiana viewers struggling to pay their NIPSCO bills, Olsen said many lawmakers he speaks to are very aware of what their constituents are facing. He said affordability continues to be the top issues Indiana residents are facing in 2026, and it's lead some lawmakers to try to fix this.
One example is HB 1002, which is about providing customers more clarity about their utility bills, as well as provide more oversight to rate increases for the future. Olsen feels it doesn't provide immediate financial relief to customers, but it's a good start. Olsen said several lawmakers have come to him for advice about addressing this issue.
"I can't go to the coffee house or the grocery store without somebody yelling me about their NIPSCO bill," said Olsen, referencing a common response he gets from state lawmakers. "1002 is sort of that acknowledgment that the way we've been doing things isn't working anymore."
Some Democratic lawmakers have offered amendments to the bill, like eliminating the sales tax to utility bills, so residents could get some financial relief. However, the Republican-controlled legislature voted those amendments down.
Fox Chicago asked Olsen if the situation surrounding utility bills could be the reason some state lawmakers get voted out of office this November.
"Affordability is a top-notch issue. We've seen some election results sort of go in unexpected ways across the country in recent days," said Olsen. "They know folks are paying attention and I think folks are concerned about outcomes at the ballot box."
What's next:
The IURC has a pending case investigating alleged billing discrepancies involving NIPSCO, including how they affect company revenue and rates and whether customers should receive refunds.
Indiana lawmakers are currently debating HB1002, which passed out of the house and is currently being debated in the senate.