NIPSCO has filed a seven-year, $1.33 billion plan to implement T&D and storage system improvements. The plan is comprised of two main parts: (1) projects targeting the replacement of aging assets, and (2) projects intended to maintain the capability of NIPSCO’s electric system to deliver power to customers. The proposal also opens the door to “appropriate economic development projects” in the future, although NIPSCO has not proposed any such projects at this time.
NIPSCO stated that its plan will avoid large, one-time rate increases by instituting a gradual increase in rates. It has requested authorization to include the costs of its proposed projects in its rate base in its next general rate case proceeding. The Indiana Utility Regulatory Commission will hold a pre-hearing conference and preliminary hearing on January 27.
Similarly, Duke Energy has filed a seven-year, $1.83 billion plan for eligible T&D and storage system improvements. Duke is also seeking approval of a T&D Infrastructure Improvement Cost Rate Adjustment and deferrals; dynamic pricing riders, including residential and small commercial TOU and variable peak pricing tariffs; and a new depreciation rate specific to new advanced meters to be installed under the T&D plan. In 2014, Duke Energy proposed a seven-year, $1.87 billion infrastructure plan, but the IURC rejected that proposal.
Indiana law authorizes investor-owned electric utilities to propose grid-modernization plans that meet specific criteria. The IURC will review each utility’s plan to determine if it is justified.
Note: EQ Research tracks, analyzes and provides summaries of clean energy regulatory developments in all 50 U.S. states. For more information, click here.