NIPSCO, in partnership with Franklin Energy Services, LLC, provides a range of incentive options. CHP projects may qualify for the Commercial & Industrial Custom Electric Incentive Program, Commercial & Industrial New Construction Electric Incentive Program, Custom Natural Gas Incentive Program, and/or Prescriptive Natural Gas Incentive Program, depending on the size and nature of the project.

Published in 2006, the Indiana Strategic Energy Plan includes the following goals: Reduce energy dependency and increase reliability; Make gas from coal versus importing natural gas; Improve energy efficiency ; Strengthen and expand energy infrastructure (including rail); Assist energy supply and infrastructure projects in federal, state and local regulatory proceedings to attain needed permits, approvals and tariffs; Provide incentives for energy efficiency investments that make power while maximizing the use of waste heat that can also be used in another process or for additional power, as well as fuel cells; Support alternative pricing regulatory mechanisms that encourage utilities to promote efficiency and conservation by their customers without incurring negative financial results.Planning efforts are currently underway for the release of a new state energy plan; The anticipated release was set to be spring/summer 2014.

Indiana utilizes collaborative oversight boards that monitor the progress and effectiveness of natural gas conservation programs. The natural gas boards (one for each of the three major gas utilities) bring together diverse perspectives and expertise. The boards use a consensus process in making key decisions regarding funding, program design, and evaluation. Monthly conference calls are used to review a "dashboard" of program results, monitoring expenditures to date, participation levels, call volume, and other key performance metrics. Such processes ensure that problems are identified in a timely manner, and provide a mechanism for program design adjustments and reallocation of resources as needed. Indiana permits gas utilities to recover costs associated with funding for natural gas energy efficiency efforts. These efforts may include, among others, energy efficiency programs, customer education programs and weatherization programs designed to benefit customers.On March 2, 2015 Vectren Energy Delivery of Indiana and the Indiana Office of Utility Consumer Counselor filed a joint settlement with the Indiana Utility Regulatory Commission to extend the utility's energy efficiency plan beyond 2015 to 2020. The plan will allow Vectren to operate under a modified rate design.

In 2013, the state legislature passed a bill that allowed for gas utilities to apply for a cost recovery tracker for infrastructure upgrades and extensions; under the legislation, utilities may propose a 7 year infrastructure plan to the IURC, and, if considered reasonable, the utility may recover its investment in a timely manner through a tracker on the customer’s bill.NIPSCO filed a 7 year plan with the IURC on 10/3/2013. A portion of NIPSCO’s plan will be dedicated to investments in extending natural gas service to rural areas Ind. Code § 8-1-39-2 provides that eligible improvements include, among other things, projects that a public utility undertakes for purposes of economic development, including the extension of gas service to rural areas, and that were either: (1) designated in the public utility's approved 7-year plan, or (2) approved as a targeted economic development project under Ind. Code § 8-1-39-11. NIPSCO did not request approval of any specific targeted economic development project, but instead proposed to include in its Plan approximately $99 million for the extension of natural gas lines into currently unserved rural areas. (Any project that includes both rural and non-rural applicants will be considered a targeted economic development project. Rural areas were defined as 1) a territory within the state of Indiana that is outside the corporate limits of a municipality, or 2) any incorporated community of less than 2,000 as of the 2010 census. This plan was approved on April 30, 2014.Vectren filed a 7 year plan with the IURC on 11/26/2013. A portion of the planned infrastructure investments include expanding gas delivery infrastructure to rural areas to promote economic and/or rural development and energy affordability. The Commission held that rural extensions shall be limited those areas within Vectren's service territories that are unincorporated. To the extent that Vectren believes a particular extension project to an area that includes an incorporated town should be considered a rural extension project because it could not otherwise receive natural gas service, then Vectren may propose such project for consideration in its annual update to its TDSIC Plans. In addition, consistent with prior decisions, the Commission further found that the approximate $14.2 million allocated for rural extensions is limited to the use of rural extensions identified in the TDSIC Plans and shall not be used to fund project cost increases or other improvement projects. The Plan included expanding gas infrastructure to rural areas served by propane and supporting economic development growth along the new I-69 corridor. The IURC approved this plan on August 27, 2014.

In 2013, the state legislature passed a bill that allowed for gas utilities to apply for a cost recovery tracker for infrastructure upgrades and extensions; under the legislation, utilities may propose a 7 year infrastructure plan to the IURC, and, if considered reasonable, the utility may recover its investment in a timely manner through a tracker on the customer’s bill.In 2008, Indiana Gas (Vectren Corp.) received approval to implement a tracking mechanism that allows the utility to defer expenses associated with investments in infrastructure and replacement projects. In 2006, Southern Indiana Gas and Electric Company (Vectren Corp.) received approval of a tracking mechanism for recovery of an accelerated bare steel and cast iron pipeline replacement program.NIPSCO field its 7 year plan with the IURC on October 3, 2013. Among the projects which NIPSCO will pursue over the next seven years: installing 80 miles of transmission pipeline and adding automated valves ($280 million); eliminating bare steel gas mains and replacing them with low pressure systems ($61 million); and retrofitting lines for in-line inspection ($46 million).This plan was approved on April 30, 2014.Vectren filed its 7 year plan with the IURC on November 26, 2013. The plan includes the replacement of 800 miles of bare steel and cast iron distribution mains with new mains in the 13,000-mile network in Vectren North, inspecting and upgrading its pipelines, and the expansion of gas delivery infrastructure to rural areas, which call for an estimated $650 million investment. The company will also replace 300 miles of bare steel and cast iron distribution mains with new mains in the 3,200-mile network of Vectren South, which call for an estimated $215 million investment. The costs will be recovered through a fixed charge to be included in residential customers' monthly bills. Gas bills will not be adjusted for these expenditures until 2015, with modest increases in adjustments up to 2021. The IURC approved this plan on August 27, 2014.On March 30, 2016, the Indiana Utility Regulatory Commission approved gas infrastructure modernization projects representing $890 million in investments supported by recovery mechanisms for Vectren as part of the company’s third update to its initial 7 year plan.

Citizens Energy Group owns 2 public CNG stations in Indiana and has a Compressed Natural Gas delivery service rate schedule (Gas Rate No. D7) in its tariff. This schedule is utilized by single end-use customers with one meter supplying a single premise for purposes limited exclusively to the conversion of such Gas to compressed natural Gas for use in fueling motorized vehicles. Vectren Energy Delivery (Vectren South) owns and operates a CNG station in Evansville, Indiana and has a Natural Gas Vehicle rate schedule (Rate 129) in its tariff. The tariff is designed to periodically adjust its distribution charge to make the Retail price at the pump follow average CNG prices in the surrounding area. This change was implemented in 2013 in order to avoid discouraging private CNG fueling station development, given the company’s previous below-market price. Vectren’s tariff for general terms and conditions has also been modified to allow behind the meter CNG sale-for-resale in standard tariff rate schedules.Integrys Energy Group subsidiary Trillium CNG owns and operates stations in Lafayette, Indianapolis, West Indianapolis, Fort Wayne and Griffin.WEC Energy Corp. subsidiary Trillium CNG owns and operates stations in Des Moines and Davenport.

Citizens Energy operates under a decoupling mechanism and a weather normalization mechanism.Vectren utilizes a decoupling mechanism and a Normal Temperature Adjustment (NTA) mechanism to eliminate the impact of weather deviations on gas distribution revenues.