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NIPSCO Overcharged 3,500 Customers, Delayed Reporting Issue

By: Charlotte Burke • March 18, 2026 • Indianapolis, IN
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(INDIANAPOLIS) - Newly unsealed records show NIPSCO overcharged more than 3,500 natural gas customers and did not notify state regulators for nearly a year.

According to 21Alive, the utility discovered the billing problem in October 2024 while installing new smart meters. Officials say improperly installed mechanical meters caused inaccurate readings, leading to 3,542 customers being billed roughly double their actual usage. Another 317 customers were underbilled.

NIPSCO did not report the issue to the Indiana Utility Regulatory Commission until September 2025.

The company has since credited affected customers more than $1.4 million. Those who were overcharged received credits covering 50 percent of gas usage for a 12-month period. Customers who were undercharged will not be required to repay the difference.

NIPSCO says less than one percent of its customers were impacted and that the issue was not limited to a single area.

The utility acknowledged its communication could have been more proactive and said it has since notified customers through letters, email and online postings.

State regulators are continuing to investigate, with a hearing scheduled for July.