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 nearly 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. "This situation was predictable, it was obvious, and it was preventable."

Shragal said the company has even failed to respond when requests are made to trim trees growing near power lines.

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."

Jack Tipold, of Valparaiso, is the lead plaintiff in the lawsuit. He said he dealt with excruciating pain last week, after his dental procedure was interrupted.

"For my particular case, I was in surgery when the power went out," he said.

Afterward, Tipold said he couldn't get pain medication because of the power outages in the area.

"I don't know how y'all feel about oral surgery, or even a cavity. I had all my teeth removed, and no medication for 48 hours. Let me tell you something, it was a struggle," he said.

The lawsuit asks that customers be compensated for damages caused by the outages.

"Storms are going to happen, right? But this could have been preventable," Tipold said.

In a statement on the lawsuit, NIPSCO said, "We strongly disagree with the characterization of NIPSCO's vegetation management practices."

"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 said. "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."