NIPSCO open to changing rate hike plan for farmers

INDIANA - Northern Indiana Public Service Co. is considering adjusting its proposed 15.6 percent electric rate increase to make it less costly for farmers who face possible price hikes many times that level.

A demand charge that NIPSCO has proposed to encourage customers to spread their energy use to offpeak hours would deliver price spikes to farmers and grain elevators because they use lots of power drying crops during harvest.

Darrell Fredrickson of Kentland said he was shocked when he saw NIPSCO's estimated he would pay 237 percent more to run his grain elevator if the rate hike goes through as proposed.

"In 2007, our power bill was $60,000. That same usage on their new rate would be $202,306," Fredrickson said. "This would have the potential to put us out of business. There's lots of years we don't make that money on everything. It would take away all our profits."

NIPSCO spokesman Nick Meyer said the utility designed the demand charges to encourage customers to use more energy during off-peak hours. He said farmers already do that because they use energy during when others don't.

"They raise a good point, and this group of customers is a group we're looking at. We're looking at that internally to get them onto a more appropriate rate," Meyer said.

Henry Coussens Jr. runs a family corn and soybean farm in Kentland. He said about 98 percent of the farm's electricity is used in September through December to dry corn. In 2007, the farm's electricity bill was $11,100. NIPSCO has projected their bill will go up 62 percent to $18,714.

"We were very shocked. Holy cow! This can't be happening," Coussens Jr. recalls thinking when he saw NIPSCO's projection. "We use the majority of our electricity in the fall. It's almost like a penalty associated with not having constant demand throughout the year."

Coussens said unlike other businesses, farmers can't pass on their costs by raising corn prices.

"Our prices are determined on the Board of Trade. I can't say I need two more cents a bushel demand for air conditioning is off... and the heating hasn't started," he said.

Rate cases can last 12 to 18 months. NIPSCO submitted its proposal to the Indiana Utility regulatory Commission in 2008, and it expects its new rates will go into effect late this year or early in 2010.

The Indiana Office of the Utility Consumer Counselor, which functions as the official state advocate for consumers, has until April 17 to review NIPSCO's request and take a position.

Related News

docked ferry

By Land and Sea, Clean Electricity Needs to Lead the Way

MARTHAS VINEYARD - Over the past year, it has become increasingly clear that climate change is accelerating. Here in coastal New England, annual temperatures and precipitation have risen more quickly than expected, tidal flooding is now commonplace, and storms have increased in frequency and intensity. The window for avoiding the worst consequences of a climate-changed planet is closing.

At their recent special town meeting, Oak Bluffs citizens voted to approve the 100 per cent renewable Martha’s Vineyard warrant article; now, all six towns have adopted the same goals for fossil fuel reduction and green electricity over the next two decades. Establishing…

READ MORE
saudi windpower

Saudis set to 'boost wind by over 6GW'

READ MORE

us-nonprofit-invests-in-electric-trucks

U.S. Nonprofit Invests $250M in Electric Trucks for California Ports

READ MORE

hydro one

Hydro One and Alectra announce major investments to strengthen electricity infrastructure and improve local reliability in the Hamilton area

READ MORE

power lines

Nearly $1 Trillion in Investments Estimated by 2030 as Power Sector Transitions to a More Decarbonized and Flexible System

READ MORE