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Class-Action Lawsuit Targets NIPSCO Following Prolonged Northwest Indiana Outages

By: Macy Gray • August 27, 2026
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VALPARAISO, Ind. (WLKI)- A proposed class-action lawsuit is seeking compensation from NIPSCO for damages allegedly caused by prolonged power outages following severe storms in Northwest Indiana.


Electricity has since been restored across the broader region. NIPSCO reported that restoration work connected to the Aug. 11 storm and subsequent weather was substantially complete as of Wednesday morning, although crews continued addressing a limited number of individual outage cases. NIPSCO outage update

The lawsuit, filed by the Allen Law Group, alleges the Northern Indiana Public Service Company failed to adequately manage trees and vegetation near electrical lines before the storms.


According to CBS News Chicago, attorneys contend that downed trees and vegetation were leading causes of the outages, which left some customers without electricity for nearly two weeks.


The plaintiffs allege NIPSCO failed to consistently trim trees on a five- to seven-year schedule despite knowing some species could grow back into power lines within five years.


Attorney Otto J. Shragal called the outages predictable and preventable.


"This needs to change," Shragal said.


The lawsuit seeks compensation for customers who allegedly suffered property damage, financial losses, physical injuries or emotional distress during the outages.


Reported losses include spoiled food and flooded basements. Attorneys also cited cases involving residents who were unable to operate medical equipment, a delayed emergency surgery and a patient who allegedly could not obtain pain medication after a dental procedure.


Valparaiso resident Jack Tipold is identified as the lead plaintiff. Tipold said power failed while he was undergoing oral surgery to have his teeth removed.

He said the outage disrupted the procedure and prevented him from obtaining medication for approximately 48 hours afterward.


"It was a struggle," Tipold said.


Tipold said severe storms are unavoidable but argued that better maintenance could have reduced the extent or duration of the outages.

Attorney Kenneth J. Allen said the case is intended to hold the utility accountable and force changes to its vegetation-management practices.

NIPSCO disputes the allegations and says it will defend itself through the legal process.


"We strongly disagree with the characterization of NIPSCO's vegetation management practices," the company said.

NIPSCO said its electrical operations and vegetation-management program are overseen by the Indiana Utility Regulatory Commission. The company also said its spending on vegetation management has more than doubled since 2016.


The utility maintained that the storms caused unprecedented damage throughout its electrical system, including downed lines, broken poles and damaged equipment requiring thousands of individual repairs.


NIPSCO said it recognizes the effects prolonged outages can have on households and communities but maintains that safety and reliability remain central to its operations.


The lawsuit also points to NIPSCO's rates and service-reliability record. The plaintiffs cite IURC information that they say shows NIPSCO charges Indiana's highest residential electrical rate at $233.62 per 1,000 kilowatt-hours while recording the state's poorest reliability performance.

Those assertions form part of the plaintiffs' case and remain subject to review during the litigation.


The widespread restoration of power does not end the lawsuit. The case focuses on whether NIPSCO's maintenance practices contributed to the outages and whether customers should receive compensation for resulting losses.


The claims are civil allegations and have not been proven in court.