HAMMOND, Ind. (AP) — A Lake County commissioner wants Northern Indiana Public Service Co.’s proposed 7.9 percent electric rate increase rejected, but a utility spokesman says it’s necessary.

The Times of Munster and the Merrillville Post-Tribune report about 150 people spoke out on the rate increase Thursday during a public hearing in Hammond.

County commissioner Gerry Scheub questioned the value of a rate increase when people are losing their homes. He noted that 15,000 county parcels are being sold for back taxes.

NIPSCO says its rates lag behind the national average. Under the rate increase the average bill would rise about $6 per month to nearly $81.

NIPSCO spokesman Nick Meyer says the utility needs the higher rates to improve customer service, invest in infrastructure and create programs to help customers manage their bills.

Posted 4/8/2011