Class action lawsuit filed against NIPSCO over weekslong Northwest Indiana power outages
As tens of thousands of Northwest Indiana residents remain without power following recent storms, a class action lawsuit has been filed against NIPSCO, the region's electrical utility.
The suit, brought by the Allen Law Group, comes as some residents have gone two weeks without electricity, raising questions about the company's reliability.
According to the Indiana Utility Regulatory Commission, NIPSCO charges the highest electrical rates of any utility in the state, at $233.62 per 1,000 kWh. Despite those rates, IURC records show NIPSCO also has the worst reliability record among utilities in Indiana — a gap that has fueled growing frustration among customers throughout the outage.
The lawsuit alleges that downed trees and vegetation are the leading cause of power outages, and that NIPSCO has failed to proactively trim trees on a five-to-seven-year cycle, despite knowing some tree species can grow back into power lines within five years. Instead, attorneys allege, the company simply reacts to outages after they occur rather than preventing them.
"This needs to change," attorney Otto J. Shragal said, arguing that proactive vegetation management could prevent many of the outages NIPSCO customers experience.
Thousands of Northwest Indiana residents are named in the suit, which seeks to hold NIPSCO accountable for harms attorneys say could have been prevented through proper vegetation management. Beyond property damage such as food spoilage and flooded basements, attorneys cite cases of physical and emotional harm allegedly tied to the outages — including residents unable to use medical equipment like nebulizer machines, a delayed emergency surgery, and a patient sent home without proper pain management following a dental procedure.
"This class action lawsuit demonstrates the immense power citizens possess when they stand together," attorney Kenneth J. Allen said, adding that the suit aims to "force change and impose accountability on NIPSCO for the foreseeable and preventable harm caused by its negligent vegetation management."
The lawsuit asks that customers be compensated for damages caused by the outages.
