Northwest Indiana residents' electric bills will go up starting this month

Customers of the northwest Indiana utility NIPSCO will soon see their electric rates go up by about $12 a month. The state recently approved the increase to help pay for new renewable energy projects as well as maintaining the company’s coal plants.

NIPSCO’s Schahfer coal plant was originally supposed to shut down this year, but the company said solar supply chain shortages meant they had to keep the plant online for another two years. The utility expects costs will go down as it retires coal plants.

Consumer advocates with the Citizens Action Coalition said the state will likely see more situations like this from Indiana utilities — where customers have to pay for both new energy projects and old ones. The group said utilities should explore ways to reduce the financial burden on their customers.

READ MORE: NIPSCO asks for rate increase to help transition to renewable energy

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As part of a state pilot program, CenterPoint Energy in southern Indiana will be able to pay off the cost of its A.B. Brown coal plant over a longer period of time and at a lower rate. Right now, it’s the only utility allowed to do so.

NIPSCO had originally asked the state to raise rates by about $19 a month. The $12 increase will be phased in over the next two years.

Rebecca is our energy and environment reporter. Contact her at [email protected] or follow her on Twitter at @beckythiele.