Return on Equity and Utility Performance in NIPSCO Rate Case
Synapse was engaged by the Board of LaPorte County Commissioners to evaluate the reasonableness of Northern Indiana Public Service Company's (NIPSCO) proposed return on equity (ROE) in its 2024 electric rate case (Cause No. 46120). Melissa Whited testified that NIPSCO’s proposed ROE of 10.6 percent was excessive, given the utility’s poor performance on customer satisfaction and service reliability, as well as the significant affordability challenges faced by its customers. She recommended setting the ROE at the lower end of the reasonable range—9 percent—to better align utility incentives with performance and customer outcomes.
In her testimony, Ms. Whited showed that NIPSCO’s rates were already the highest among Indiana’s investor-owned utilities and that the company consistently ranked at or near the bottom in both reliability and customer satisfaction. Synapse's analysis played a key role in a settlement agreement that ultimately set the allowed ROE at 9.75 percent.