INDIANAPOLIS (WLKI) - Gov. Mike Braun is demanding a state investigation into whether NIPSCO properly maintained its electrical system and used money approved for infrastructure and reliability improvements as promised.
Braun on Monday directed the Indiana Office of Utility Consumer Counselor to file a complaint and petition asking the Indiana Utility Regulatory Commission to open the investigation.
The regulatory review would focus on NIPSCO's vegetation management and right-of-way maintenance practices. It would also examine how the utility spent money authorized through IURC-approved tracking mechanisms.
According to the Indiana Capital Chronicle, Braun's action followed widespread outages that left thousands of homes and businesses in northwest Indiana without electricity for nearly two weeks.
NIPSCO reported about 10,000 customers without power as of midday Monday. About 3,900 of those outages were connected to the Aug. 11 storm and subsequent severe weather.
The utility expected restoration work to be substantially completed in Munster and Lake Station by Monday night. Gary and Portage were expected to reach that point by Tuesday night, although some individual outages could continue longer.
More than 350,000 outages were recorded after the storms struck the region.
Braun praised state employees and utility crews working in the field but accused NIPSCO management of failing to prepare adequately and provide timely solutions.
"NIPSCO is a monopoly utility that Hoosiers pay every month with the expectation that it will use its considerable resources to maintain its system, prepare for severe weather and restore service as quickly as possible when disaster strikes," Braun said. "NIPSCO has failed to keep its end of the bargain."
The requested regulatory investigation follows a proposed class action lawsuit filed in Porter County Superior Court. The lawsuit alleges inadequate vegetation management contributed to repeated and prolonged outages beginning in August 2024.
Valparaiso resident Jack Tipold and 16 other northwest Indiana residents are named as plaintiffs.
The complaint accuses NIPSCO of failing to inspect power lines and poles adequately, identify hazardous trees, respond to public complaints and maintain a sufficient vegetation management workforce.
Tipold alleges he was undergoing oral surgery when the power failed, forcing the procedure to end before he received adequate pain control. He also reported losing perishable household goods.
Other plaintiffs allege they experienced financial losses and physical or emotional harm.
The plaintiffs are asking the court to certify a class consisting of Indiana residents who suffered injuries or financial losses because of the utility's alleged negligence. They are seeking compensatory and punitive damages in an amount to be determined.
The case had not been certified as a class action as of Monday. No hearings had been scheduled, and NIPSCO had not filed a court response.
NIPSCO disputed the allegations and said it would defend the company through the legal process.
"We strongly disagree with the characterization of NIPSCO's vegetation management practices," the company said. "NIPSCO's vegetation management spend has more than doubled since 2016, demonstrating our commitment and focus on maintaining a safe and reliable electric system."
The utility said the severe weather caused unprecedented damage and that its immediate priority remained safely restoring electricity.
The lawsuit and Braun's requested investigation address some of the same concerns but would proceed separately. The lawsuit would move through the court system, while the regulatory review would be conducted before the IURC.
The OUCC represents consumers in proceedings involving investor-owned utilities. The IURC regulates utility rates, charges and service in Indiana.
Braun has also requested an expedited federal major disaster declaration for 54 counties. His request cited wind gusts of up to 99 mph near Gary and a near-total loss of electrical service across Lake County.
The governor mobilized the Indiana National Guard and personnel from several state agencies to clear roads, alleys and debris so utility crews could access damaged infrastructure.