Northern Indiana Public Service Company President and COO Vince Parisi testified Tuesday that the company has locked out around 1,600 employees and would utilize different union workers to build a data center project.
Parisi was questioned during an Indiana Utility Regulatory Commission hearing Tuesday discussing a special contract and power purchase agreement between NIPSCO, GenCo and Amazon to build a data center in Hobart.
GenCo is a NIPSCO subsidiary that allows the utility company “to serve large customers like Amazon without shifting costs to existing NIPSCO customers,” according to the company website.
The company has stated — and Parisi reiterated Tuesday — that the structure will save customers $1 billion that will be returned as credits on monthly electric bills over the course of the 15-year special contract.
“The GenCo approach provides an answer to how we ultimately can serve large load customers without subjecting our current customer base to the significant cost of new generation, new load side,” Parisi said.
Citizens Action Coalition of Indiana attorney Jennifer Washburn said there is a dispute about the significant cost that ratepayers would have to pay to build the data center.
Parisi testified that a confidential document shows a different number in customer savings. Parisi did not state the number for the record because of the document’s confidentiality.
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Washburn asked Parisi if the company has “a locked out union situation right now,” which Parisi confirmed was happening. Last Thursday evening, the company proceeded to lock out about 1,600 employees who are covered by United Steelworkers Union Locals 12775 and 13796 after the two sides didn’t come to an agreement on a new contract. The previous one expired on March 31.
Washburn referenced Parisi’s previous testimony in the case where he talked about local union work in building the data center and asked if that was the same union currently in dispute with NIPSCO. Parisi said he was referring to different unions.
United Steel Workers Local 12775 vice president Vern Beck said the company would hire outside unions to build the data center. But, the union has advocated for its workers to operate the data center once it is built, Beck said.
“We believe we should (operate the data center) because that’s what we do,” Beck said.
The concern the union has is that NIPSCO won’t advocate for its employees to operate the data center by using a common loophole of outsourcing the energy production, Beck said.
“We really don’t know where it’s going to land,” Beck said. “It’s a NIPSCO project no matter what name they give it.”
The operation of the data center hasn’t been brought up in contract negotiations, Beck said. Because the IURC creates its hearing schedules, it’s likely Parisi would have to testify Tuesday whether or not the company was in negotiations with the union, he said.
Since June 2023, Blackstone, one of the largest private equity firms in the world, has held 19.9 percent ownership stake in NIPSCO and 19.9 percent of Generation Holdings, of which GenCo is a subsidiary, Parisi said.
Further, Parisi testified that NIPSCO rates have increased by 26 percent from 2024 to 2025.
Washburn asked Parisi if he believed “there are some unique risks with this being the largest data center in the nation,” but Parisi downplayed any particular issues.
“There are risks in any special contract or any relationship,” Parisi said.
Washburn pointed to Parisi’s previous testimony where he stated that NIPSCO’s electric load and generation will double as a result of the special contract. She asked again if he believed that wasn’t a unique risk.
“I think the special contract and the GenCo structure helps to properly allocate and identify those risks,” Parisi said.
As Washburn asked Parisi about the electric cost to customers, she asked if he was disputing that NIPSCO has the highest electric bills in the state. Parisi said NIPSCO customers’ bills are on par with other utilities in the state.
“NIPSCO’s average residential bill is about $162 a month which puts it on par with the average residential bills for the other electric utilities,” Parisi said.
Washburn asked Parisi if he understands the concerns from residents that it appears NIPSCO has been focusing on revenues over the ratepayers. Parisi said NIPSCO has 1.4 million customers and that “customers experience our service in a variety of ways.”
Washburn asked Parisi if he thinks about and tries to protect customers from the private equity involvement in the company.
“Our GenCo structure is specifically created to insulate our traditional customer base from costs associated with large load customers,” Parisi said.
But Blackstone has nearly 20% involvement in GenCo, Washburn said. As CEO, Parisi said he focuses on NIPSCO’s customers, communities, growth, five pillars and employees.