U. S. Steel Loses Case at Indiana Court of Appeals
03/11/2008 - United States Steel expresses disappointment over the Indiana Court of Appeals’ reversal of a previous Indiana Utilities Regulatory Commission decision involving a rate escalation provision in the company’s electric power supply contract with NIPSCO.
The Indiana Court of Appeals has reversed a previous decision of the Indiana Utilities Regulatory Commission
(IURC) involving a rate escalation provision in U. S. Steel's electric power supply contract with Northern Indiana Public Service Co. (NIPSCO).
The decision, handed down by the Court on Friday, March 7, 2008, held that a rate provision in a 1999 agreement between the parties applied to certain electric demand charges since October 1, 2005—that will continue until July 2009. The Court remanded the case to the IURC for calculation of the charges.
U. S. Steel expressed surprise and disappointment over the outcome of the case, which it had won on a summary judgment motion before the IURC. The company intends to seek a review of this decision by the Indiana Supreme Court, but expects to establish a pre-tax reserve of approximately $45 million in its first quarter results related to prior-year effects.
