May 26, 2026 · Tippecanoe · Marion · NIPSCO
NIPSCO TDSIC Cost Recovery Lands at the Indiana Supreme Court, And Two More Moves Indiana Manufacturers Should Be Tracking Now
Indiana Supreme Court heard NIPSCO's $1.64B TDSIC case May 21. Three regulatory moves C&I operators must track before the ruling lands.
The Indiana Supreme Court heard oral arguments on May 21 in NIPSCO's $1.64 billion TDSIC cost recovery case, and whatever standard the court sets will govern how NIPSCO, and potentially all four other investor-owned utilities in Indiana, can recover infrastructure cost increases from C&I customers. Today's brief covers that ruling, a $3.8 billion chip plant construction timeline at risk in West Lafayette, and a closing rebate window at AES Indiana with a hard deadline tied to a parent company ownership change.
01Statewide
NIPSCO's $1.64B TDSIC Overrun: What the Supreme Court Decision Means for Your Bills
On May 21, the Indiana Supreme Court heard arguments in IURC case 45557, NIPSCO's appeal over whether inflation-driven overruns on its $1.64 billion electric infrastructure plan can be recovered through the TDSIC tracker rather than a base rate case. The NIPSCO Industrial Group, a coalition of six major industrial customers including US Steel, argued that routing costs through the tracker bypasses the prudence review that protects customers from spending that isn't cost-justified.
02Tippecanoe
SK Hynix's $3.8B West Lafayette Chip Plant: Construction Exposure Your Contractors Need to Know
SK Hynix's $3.8 billion high-bandwidth memory facility in West Lafayette is being fast-tracked, with above-ground construction targeted for later in 2026 and mass production slated for the second half of 2028. A resident petition filed in late 2025, centered on the Purdue Research Foundation's role in structuring the land deal outside standard municipal transparency requirements, is still in hearing in Tippecanoe County Court.
03Statewide
AES Indiana's $1M DSM Rebates and the June 24 Deadline
AES Indiana has filed a new three-year demand-side management plan with the IURC targeting 118 megawatts of demand response and efficiency additions by 2028. For C&I customers above 1 MW of demand, rebates go up to $1 million per qualifying project.
Questions for Your Morning Huddle
Q: What's my actual TDSIC exposure across electric and gas if the Supreme Court sides with NIPSCO? A: Pull your bills and identify all TDSIC tracker line items on both electric and gas service. NIPSCO's TDSIC 6 billing period is already collecting for April through September 2025, and a separate $741 million gas TDSIC plan is pending, whatever standard the court sets governs both.
Q: Does the SK Hynix West Lafayette project create labor or supply chain risk for my contractors? A: If your firm or your contractors work in the construction trades in the Lafayette region, confirm compliance with CHIPS Act requirements now, either a project labor agreement or 15% registered apprenticeship utilization is required on this project. Construction mobilizing in 2026 on the largest single development project in Indiana history will tighten regional labor supply and drive water infrastructure rate additions across the greater Lafayette area.
Q: How do I lock in AES Indiana DSM rebates before the ownership transaction creates uncertainty? A: Pull the list of efficiency projects qualifying under AES Indiana's currently approved 2025-2026 DSM plan now. If you're above 1 MW of demand, you can seek intervener status in rate case cause 46258 or file comments with the IURC before the June 24 deadline, those are concrete levers available to you right now.
This brief
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