NIPSCO announced $57.5 million in savings for its electric customers, but one local activist questions how much help it will truly bring to ratepayers
In a Wednesday news release, NIPSCO announced that the average residential electric customers can expect to receive about $90 total in savings, or $5 per month for 18 months generated through data center development.
The savings will come to customers in a $5 bill credit, which will begin 30 days after the Indiana Utility Regulatory Commission approves the move.
“When our region grows, our customers share in the benefits,” Vince Parisi, NIPSCO president and COO said in a news release. “Putting the value from data center development directly back on the customers’ bills is one more way we’re turning growth into real savings for our families across northern Indiana.”
According to the NIPSCO release, electric customers can expect the first credits to begin in 2027’s first quarter and ramp up over time. The credit also builds on $1.75 billion in customer credits expected from previously announced agreements with Amazon, Alphabet and Amazon.
“Under those agreements, large-load customers will fund the infrastructure needed to serve them, while a portion of the revenues generated through their contracts will be returned directly to existing NIPSCO electric customers,” the release said.
The newly announced credit is “an expansion of the value being driven” through NiSource’s GenCo model.
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According to Post-Tribune archives, GenCo was approved by the IURC in September 2025 to shield retail customers from costs associated with serving new data centers. It operates as a separate entity from NIPSCO.
Ashley Williams, executive director of Just Transition Northwest Indiana, said in a statement to the Post-Tribune that a $90 credit “does little to alleviate the everyday hardships” NIPSCO customers have endured.
“It doesn’t come close to covering the rate increases families have already absorbed, or the suffering of those who went weeks without power after the August derecho swept through Northwest Indiana,” she said in her statement.
Williams also said the savings aren’t generated by data centers. NIPSCO sold more than 320 acres at its R.M. Schahfer Generating Station in Wheatfield to Amazon, according to an Oct. 15 IURC filing.
According to Post-Tribune archives, in June, the Northwest Indiana Forum announced a $7 billion data center in Jasper County called Project Rise. The Jasper County Council previously voted on tax abatements for NIPSCO and a resolution to create “a form of enterprise information technology exemption agreement” with Amazon.
The Jasper County Amazon data center has received harsh criticism from county residents, and Williams said it’s continued to cause nuisance for nearby homes and farms.
“Yet again, NIPSCO isn’t giving us the full picture,” Williams said in her statement. “NIPSCO wants to claim data centers lower bills, but we can see clearly what these credits actually are.”
Indiana Gov. Mike Braun directed the IURC to expedite its utility filings review to lower electric rates for Hoosier ratepayers, according to a Friday news release.
Braun specifically mentioned the NIPSCO credits, saying they’ll help offset electricity costs for Hoosier households. He encourages using new revenue from large-scale facilities to help lower utility costs.
“Affordability is my top priority, and every opportunity to save Hoosiers money on their electric bills requires urgent action,” Braun said. “When utilities come forward with proposals to lower rates, I want those savings getting into Hoosiers’ pockets as quickly as possible. I’m directing the IURC to expedite these filings and make sure families aren’t waiting any longer than necessary for relief.”