GARY, Ind. (AP) -- Hundreds of people, many of them upset about Northern Indiana Public Service Co.’s proposal to raise residential electric rates by 15.6 percent, crowded into a public hearing to let state regulators know their opinions.

“What are the options of the people, heat or eat?” East Chicago Councilwoman Christine Vasquez asked the four Indiana Utility Regulatory Commission members present Tuesday night.

About 320 people attended the hearing at Indiana University Northwest and a similar number waited outside waiting for seats to open.

Pastor Willie Johnson, of Mission of Jesus Christ Church, was among five bus loads of church members brought by the Twin Cities Ministerial Alliance who waited to get in. They sang “We Shall Overcome,” then turned to chants of “Can’t hear out here.”

“Our parishioners are here to show the outrage they have with NIPSCO that they would try to raise their bills 15 percent,” Johnson said. “Most of our parishioners cannot afford it now.”

Johnson and other pastors repeatedly made the point there should be no rate increase while people are losing homes and jobs in the depths of a recession.

Eileen O’Neill Odum, NIPSCO’s chief executive officer, did not comment during the commission’s hearing, but defended the proposal in speaking with reporters.

“We know many of our customers have a keen interest and concern with this rate case,” Odum said. “So I am here ... to better understand what customer concerns might be.”

Odum said in a statement that it has been 21 years since NIPSCO, with about 450,000 electric customers across much of the northern third of Indiana, has sought a base electric rate increase.

Utility spokesman Nick Meyer said it is important for customers to realize that the 15.6 percent rate increase would apply only to the electric portion of their bill and not the natural gas portion. NIPSCO says a typical consumer would see an increase of $12.76 a month.

The hearing started with a succession of officials from local chambers of commerce and other community organizations praising NIPSCO as a good corporate citizen.

“NIPSCO is an excellent community partner,” said Tim Bietry, president of the Michigan City Chamber of Commerce. “They’re willing partner in deals that led to expansion of existing business and new growth. They’re not simply an energy provider, but a stimulus for growth in the region.”

The utility commission might not issue a final ruling on the case until next year.

Posted 3/4/2009