Non-profit organization provides deep dive into Blackstone, a private equity NIPSCO stakeholder

INDIANA — A non-profit organization is taking a closer look at a private equity firm that holds a nearly 20 percent stake in NIPSCO as they try to figure out the rising costs customers are facing.

ABC57 News has been following the NIPSCO rate increases that impact many people in Northern Indiana. Many viewers have asked about their delivery fees and why they are sometimes higher than the cost of the actual service being provided.

Matt Parr is the Communications Director for the Private Equity Stakeholder Project, a non-profit watch dog organization.

"We do a lot of research on the impacts of private equity investments. One of the things that we've been keeping a close eye on is the private equity industry's investment into public utilities, which it's eyeing very, very closely," said Parr.

He is also a NIPSCO customer in Valparaiso. Parr has been looking into the impact Blackstone has on the pricey bills NIPSCO customers are receiving, as one of the country's largest private equity firms. Blackstone has about a 20 percent stake in NIPSCO, which Parr says is helping it with another utility acquisition.

"Blackstone is trying to acquire TXNM Energy, which operates utilities in New Mexico and Texas. Right now in New Mexico, the state's regulatory commission, similar to the Indiana Utility Regulatory Commission, is having Blackstone get permission from their commission to take over TXNM Energy."

Parr says the regulatory commission in New Mexico gave itself power the IURC does not have which allows it to grant approval before Blackstone acquires TXNM Energy.

He believes an Indiana law is what limits the IURC from granting approval or denial of utility acquisitions.

"They basically have taken the position, based on their interpretation of the Indiana statute, that they are there to try to bring transparency into this process, but they cannot approve or deny sales and acquisitions of the utilities in Indiana," Parr explained.

So, how does a multi-trillion-dollar private equity firm trying to acquire utility companies in Texas and New Mexico impact you?

"The private equity business model is basically these private equity firms, buy companies, make a large investment, like in NIPSCO, and they tend to keep that investment for a short amount of time, so usually five to seven years on average," Parr shared.

He tells ABC57 this is different than what most investors do; they invest and want to make a profit for as long as possible. Parr explains there are only so many ways to make a profit in a shortened amount of time.

"A lot of times that means rates are going to go up, which is what we're seeing with NIPSCO, rates going up very quickly."

This tool provided by the Energy and Policy Institute allows you to figure out how much of your bill goes to profit, meaning NIPSCO and its investors, including Blackstone. Simply put in your monthly bill and hit calculate.

Here is the link to the website.

So, you've received all this information about an out of state trillion-dollar entity you likely didn't know about. The question you may have now is what can you do?

"I would also encourage people to continue to try to reach out to their state senators or state representatives, because Indiana could give the IURC powers to approve whether utility is sold or transferred or, you know, reorganizes its control," said Parr.

He says this because of House Enrolled Act 1002, or HEA 1002. It's an energy utility bill signed into law on Feb. 26. The bill's goal was to make energy more affordable for the average Hoosier.

Parr said Rep. Pryor introduced an amendment to the bill but was voted down before the bill was signed into law. He shared the amendment would have required regulatory approval before a public utility could sell, transfer or reorganize its control.

NIPSCO Responses

ABC57 asked NIPSCO the following questions Monday afternoon. While NIPSCO was not available for a zoom interview, we received email responses.

Are recent rate increases and higher bills partially due to Blackstone's nearly 20 percent stake in NIPSCO?

What are NIPSCO's thought on HEA 1002? It was discussed multiple times at the IURC's Investigative Inquiry last Tuesday in Indianapolis - IGA | House Bill 1002 - Electric utility affordability

What role does Blackstone play (if any) in the spike in prices customers are seeing?

Does NIPSCO have a say in whether out of state investors become involved with the company?

Here is the full response:

"Blackstone Infrastructure Partners' 19.9 percent non-controlling equity interest is not a driver of NIPSCO's rate structure. NIPSCO is a regulated utility and cannot raise rates on its own. Any rate change must be reviewed and approved through a public, months‑long process by the Indiana Utility Regulatory Commission (IURC).

While rates have not changed during this winter period, some customers are seeing higher bills due to increased natural gas usage during colder weather. A customer’s gas bill is based on a per‑term rate multiplied by usage. In winter months, natural gas usage increases.

Natural gas bills include two components:

-Gas supply charges, which reflect market prices and are passed through with no markup by NIPSCO

-Delivery charges, which cover the regulated cost of safely delivering natural gas

NIPSCO understands customer concerns and remains focused on answering questions and supporting customers through energy assistance programs and flexible payment plans. Customers can learn more at NIPSCO.com/FinancialSupport or by calling 1‑800‑4‑NIPSCO.

Regarding, HEA 1002, we appreciate the General Assembly’s ongoing focus on energy affordability and reliability. Those are priorities we share as we work to meet the needs of approximately 1.4 million customers across 32 counties in northern Indiana that we proudly serve. Our commitment remains centered on listening to our customers and supporting them, particularly those most affected by rising household costs. NIPSCO continues to offer a range of energy assistance options to our customers.

NIPSCO recognizes that a predictable, multiyear rate plan structure can provide stability for customers and support long-term planning. This type of framework can allow for more efficient planning of the investments needed to maintain safe, reliable service. As we learn more about the implementation timelines and details associated with HEA 1002, we will work to ensure compliance while continuing to prioritize safe and reliable service for all customers.

NIPSCO remains committed to delivering safe, reliable and affordable energy to the communities we serve. Blackstone Infrastructure Partners’ 2023 investment—representing a 19.9 percent non-controlling equity interest—was structured to strengthen NIPSCO’s financial foundation and support our long-term strategy.

This equity financing helps us manage costs more effectively by reducing reliance on high-interest debt, which in turn protects customers from unnecessary rate pressure. It also enables us to invest in system resiliency and modernization, ensuring we can meet future energy needs sustainably and responsibly.

We remain focused on transparency, fiscal discipline and delivering value to our customers and communities across Indiana. "