Indiana class-action lawsuit targets NIPSCO after prolonged power outages

CHICAGO - A class-action lawsuit is seeking to hold NIPSCO accountable after thousands of northwest Indiana residents endured prolonged power outages following severe storms last week.

NIPSCO faces lawsuit over outages

What we know:

The Allen Law Group says thousands of northwest Indiana residents are seeking damages and changes to NIPSCO's vegetation management practices.

The lawsuit alleges NIPSCO failed to proactively trim trees and other vegetation around power lines, leading to outages that could have been prevented.

"Instead of trimming trees proactively on a 5-7 year cycle to prevent foreseeable outages, NIPSCO simply reacts. This needs to change," attorney Otto Shragal said in a statement.

According to the law firm, Indiana Utility Regulatory Commission records show NIPSCO charges $233.62 per 1,000 kilowatt-hours, the highest rate among electric utilities in the state. The firm also says IURC records show NIPSCO has the state's worst reliability record.

Attorneys say residents affected by the outages have reported spoiled food, flooded basements and health-related problems. The firm cited residents who were unable to use medical equipment, had medical care delayed or struggled with pain management during the outages.

"This Class Action lawsuit demonstrates the immense power citizens possess when they stand together," attorney Kenneth Allen said.

The Allen Law Group held a press conference at 10:30 a.m. Friday in Chesterton to discuss the lawsuit.

NIPSCO responds

The other side:

NIPSCO released the following statement Friday afternoon:

"We strongly disagree with the characterization of NIPSCO’s vegetation management practices in the Amended Complaint and the various press conferences held by the law firm of Kenneth Allen Law Group. We will vigorously defend the company through the legal process. NIPSCO’s electric operations, including its active vegetation management program, are overseen by the Indiana Utility Regulatory Commission.  NIPSCO’s vegetation management spend has more than doubled since 2016, demonstrating our commitment and focus on maintaining a safe and reliable electric system."

"NIPSCO understands the impact that prolonged outages can have on our customers and communities, particularly following storms, and in particular, the severe weather events that caused unprecedented damage across NIPSCO’s electric system that recently transpired."

"Safety and reliability are fundamental to how we operate, and we have established processes and procedures to maintain our electric system, including our vegetation management program. Our immediate focus remains on restoring service to affected customers safely and as quickly as possible."

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