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The state agency regulating Indiana’s natural gas utilities Thursday approved several low-income heating assistance programs but said the utility companies should contribute more dollars. The Indiana Utility Regulatory Commission’s order also would require the three natural gas utilities to include such ratepayer-funded assistance programs the next time the utilities apply to raise their rates. As winter looms, advocates for low-income Hoosiers have been on edge and questioning why the IURC spent so long considering the request, pending since April. Commission spokeswoman Danielle McGrath said the case had been expedited as much as possible. “There’s a lot of moving parts,” she said. “The commission’s very aware that the winter-heating season is coming.” The utilities filed for renewal in April but could have filed earlier, McGrath said, and some testimony was missing in the original filing. Northern Indiana Public Service Co.’s Winter Warmth program helps low-income and hardship customers on a one-time basis by paying off arrearages and covering deposits or especially high bills. Since its inception in 2004, Winter Warmth has provided assistance to more than 70,000 customers, according to IURC testimony. Because the program is funded by all utility customers, NIPSCO had to receive approval from the commission, as did Citizens Gas and Vectren Energy Delivery, which have similar programs for low-income customers. Supporters, including the Indiana Office of Utility Consumer Counselor, have said the 50-cent monthly surcharge is insignificant and benefits all consumers by reducing bad-debt write-offs and other costs. NIPSCO had testified to the commission that it would continue to support Winter Warmth by contributing up to $1 million of its own money this winter, with ratepayers providing the rest. NIPSCO’s contribution would have been about 18 percent of the program’s cost. If NIPSCO accepts the commission’s decision, the utility would be required to pay about $1.5 million to the program, or at least 25 percent of the program’s cost. It also could not use Winter Warmth funds to pay deposits for new customer hookups. A NIPSCO spokesman could not be reached for comment Thursday. NIPSCO’s parent company, Merrillville-based NiSource Inc., reported a profit last year of $79 million, according to its filings with the Securities and Exchange Commission.
The need for such programs is growing. Statewide, the gas companies’ low-income programs helped more than 68,000 households avoid disconnection last year, Dave Menzer, team leader of utility programs for the Indiana Community Action Association and co-chairman of the Coalition to Keep Indiana Warm, told the IURC in his testimony. Menzer said Thursday he hopes the utilities will accept the conditions. “Given the economy, now is not the time to do away with things that help people maintain their utilities,” he said. Community Action of Northeast Indiana said the delay has meant the social-service agency has been unable to help as many people as last year at this time, especially because other unrelated funding streams also were delayed or canceled. “It’s kind of like the perfect storm,” said Pam Brookshire, CANI’s director of program operations. “Everything’s been delayed or taken away.” Last year at this time, CANI had served 4,310 households at a cost of more than $1.8 million. So far this year, CANI has served almost 8 percent fewer households and spent about $123,000 less, Brookshire said. Brookshire is among those who questioned why the programs were allowed to expire in the first place and why the IURC deliberated for months. Kerwin Olson, program director for the Citizens Action Coalition, said the commission had held the social welfare programs to a greater scrutiny than other alternative regulatory plans that benefited corporations. “These programs are essential,” Olson said. “These are life-and-death situations.” aturner@jg.net
