NIPSCO power outages: Mike Braun orders probe into storm response

GARY, Ind. - Nearly three weeks after severe weather hit northwest Indiana, Governor Mike Braun is promising a formal investigation into how NIPSCO handled the massive power outage. 

Gov. Braun orders NIPSCO investigation

The backstory:

Speaking alongside Gary Mayor Eddie Melton on Monday, Braun said the state will examine whether utilities were properly maintaining their systems and whether customers are getting enough value for what they pay.

Melton said residents have been dealing with significant power outages following the severe storms, while the city works to clean up widespread debris.

"We know that everyone, all the Hoosiers in the state have been impacted," Melton said. "The citizens here in Gary have been enduring a significant outage of our power for more than two weeks."

Melton said he supports Braun’s call for an investigation into NIPSCO to determine what went wrong and how the utility’s response can be improved.

"I think it's extremely important that we look for reliability in our energy sources and I think it's important that we go through that process in a very intentional way," Melton said.

Braun said the investigation will look beyond the immediate outages and examine whether utilities were doing enough to prevent problems in the first place.

"There will be an investigation to see if they were doing what they were supposed to do to keep things in good shape, to be preventive," Braun said.

Braun said the Indiana Utility Regulatory Commission will also have a greater role in making sure ratepayers’ interests are represented.

"We need dependable, reliable electricity, but we need to have somebody speaking up for the rate payer, him or herself," Braun said.

Gary residents still waiting for power

Melton said some residents remain without electricity because their individual homes were damaged during the storm, even after power has been restored to surrounding neighborhoods.

He said the city is working with the Legacy Foundation to provide grants to homeowners who need help repairing damaged weatherheads and other storm-related damage.

Residents can find information about the city's storm recovery efforts at gary.gov/stormrecovery.

Melton also said Gary has begun removing storm debris and is asking residents to separate tree debris from construction debris and place it at the curb.

"We have to be intentional with that process because there are federal requirements on collecting this debris so we ensure that residents and the City of Gary can be reimbursed in that process," Melton said.

The governor said the state will also help coordinate debris removal, including bringing in local contractors.

"When you get as hard hit as Gary was hit, we are going to be behind that effort as well and involve local contractors and do that on the state dime," Braun said.

Staying at Red Cross shelter

For some Gary residents, the aftermath of the tornadoes is about more than downed trees and damaged homes — it's about not knowing when they'll have a place to live or how they'll pay their bills.

Timothy Bradley has been staying at the Hudson-Campbell Sports and Fitness Center after losing access to his apartment and says a $3,220 NIPSCO bill is keeping him from moving into another home he was approved for through HUD.

Bradley, 49, said he has lived in Gary his entire life.

He had been preparing to move into a new apartment after being approved through HUD. But when he tried to have NIPSCO service put in his name, he said he was hit with a $3,220 bill. That bill, he says, has left him stuck at the city's emergency shelter.

"I have nothing, nothing. That's why I'm here," Bradley said.

Bradley said he had two job interviews scheduled shortly before the tornadoes knocked out power. With the outage and the loss of a working phone, he said he has been unable to move forward.

"I'm a man with no communication," Bradley said.

He said he has been asking people if he can do yard work, cut grass or remove trees to make money.

"I would have to work for the money instead of just sitting out here and just asking people if you got a dollar or two," Bradley said.

The Red Cross has provided him with a phone and residents at the shelter are receiving meals, but Bradley says he still has responsibilities outside the shelter — including a 15-year-old daughter.

"I got a 15-year-old daughter that's looking for me to come in," he said. "I can't get it, because I'm not working."

'How can y'all let it get that high?'

Bradley's biggest frustration is the NIPSCO bill.

He said he previously lived in an apartment for six months and paid his bills before moving out. He questioned how the balance could eventually reach more than $3,200.

"I lived in an apartment for six months and paid my bills, so it's no way that I could live in an apartment for six months and then move and I've accumulated $3,200," Bradley said.

His question is simple: If customers can have their power disconnected over a few hundred dollars, why was his balance allowed to reach thousands?

"How can y'all let it get that high when you're cutting people off with a couple of hundred dollars?" Bradley said.

He wants NIPSCO to take responsibility and says the company is now standing between him and a home he could otherwise afford.

"I just want to move into my apartment," Bradley said. "I want to have somewhere where my daughter can come and spend time with her dad."

Bradley said he has even suggested using disaster assistance to pay the NIPSCO bill so he can finally move into the apartment.

"If you're not going to knock the whole bill off, can you just go ahead and pay that $3,200?" he said.

Bradley is also among the residents questioning whether Northwest Indiana should have another utility option.

"Yes, I would love that if the rates go down a smidge," he said.

He said lower utility costs would be particularly important for elderly residents on fixed incomes and young families.

"This isn't a bad city," Bradley said. "I know we get a lot of bad rep, but we just need some help and the proper resources for our city to flourish."

Bradley also praised Gary Mayor Eddie Melton for his response to the disaster and said he wants NIPSCO to acknowledge where it fell short.

Another Gary resident says the storm changed everything

Tracy Marie Jacobs, a lifelong Gary resident, said the tornadoes have been frightening — particularly because she says she has never experienced anything like this in the city.

"I'm 51 years old, so we never hit tornadoes here," Jacobs said. "Never, and it scares everybody."

Jacobs said her home flooded and she was left without power.

She hopes the disaster will push residents to be more prepared for future severe weather.

"Everybody should be prepared when it comes again," Jacobs said.

Jacobs also said she believes NIPSCO needs to be better prepared for future storms.

"NIPSCO is really not accountable for this, but they need to be prepared when we do have a tornado," Jacobs said.

Braun also said the investigation into NIPSCO could have broader implications for utilities across Indiana.

"When it comes to the review of a certain utility, it'll be applicable to the others as well," Braun said.

The governor said the state's utility regulatory system needs to balance the interests of utilities with the people paying the bills.

"We need dependable, reliable electricity, but we need to have somebody speaking up for the ratepayer, him or herself," Braun said.

What reforms could be coming?

Braun was pressed on what specific reforms he would support following complaints about high utility bills, the NIPSCO storm response and the company's monopoly position in Northwest Indiana.

He said the Indiana Utility Regulatory Commission ultimately has the authority to handle many of those issues, but he wants ratepayers' interests considered.

"We've been loud and clear. We want you to make sure you're taking ratepayers into consideration," Braun said.

Braun also raised the possibility of increased competition in Indiana's energy market, including smaller nuclear reactors and other forms of power generation that could decentralize the electric grid. The governor stopped short of announcing a second utility provider for Northwest Indiana. But he did suggest consumers could see action on utility rates.

"Wouldn't you love it if they like freeze those rates for two or three years?" Braun said.

He also said his administration has been talking with another utility company and suggested an announcement could be coming.

"Stay tuned," Braun said. "I think you're going to see some good news."

An investigation could determine whether NIPSCO's preparation and response were adequate, but residents still need immediate help with housing, damaged homes, utility bills and repairs.

For Bradley, waiting for an investigation isn't enough. Asked whether he was satisfied with Braun's promise to hold NIPSCO accountable, Bradley said the bigger question is how long residents will have to endure the consequences.

"How long do I have to endure this situation?" Bradley said.

He worries about what happens when the emergency shelter eventually closes.

"Now I'm stuck back on the streets," Bradley said. "I got to find somewhere to live."

What's next:

Gary officials say recovery efforts are continuing, including debris removal and assistance for homeowners whose properties were damaged.

Mayor Eddie Melton said the city has also been pushing NIPSCO for additional measures to protect customers, including extending a moratorium on disconnections and waiving certain fees and penalties.

For residents still waiting for their lives to return to normal, the state's investigation could be only the beginning.

GaryNews