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[BUSINESS] · United States · 4 sources

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Gary, Indiana, faces investigations and lawsuits after prolonged power outage

Following an August 11 derecho that caused widespread damage, the city of Gary, Indiana, is navigating a complex recovery process. The storm, which produced hurricane-strength winds, left more than 38,000 homes and businesses without electricity for nearly two weeks.

In response to the prolonged blackout, Indiana officials have launched an investigation into Northern Indiana Public Service Company (NIPSCO). The inquiry focuses on the utility's preparedness, its restoration response, and how it utilized customer-funded investments. Meanwhile, residents have filed a class-action lawsuit alleging failures in infrastructure maintenance. Critics have also raised concerns that NIPSCO's focus on developing GenCo to serve the growing data-center industry may be diverting resources from residential grid reliability.

On the ground, the City of Gary has transitioned into a debris removal phase. The city has contracted AshBritt, Thompson Consulting, and EGIS to conduct a 30-day expedited cleanup of tree limbs and construction materials. Mayor Eddie Melton emphasized that the city is working to restore neighborhoods and rebuild stronger following the storm, which officials estimate caused up to $5 billion in damage to the region.

Entities

AshBritt · Blackstone · Eddie Melton · Gary · NIPSCO

Claims

What the coverage asserts, and how many sources carry each claim.

  • [○ 1 SOURCE] NIPSCO was authorized to spend nearly $77 million on vegetation management from 2023 to 2025 and over $2 billion on infrastructure and reliability since 2016. www.urbanmag-online.com
  • [○ 1 SOURCE] The storm is estimated to have caused up to $5 billion in damage across Gary and surrounding communities. truthout.org
  • [○ 1 SOURCE] The City of Gary hired three contractors, including AshBritt, to manage a 30-day expedited debris cleanup following the August 11 derecho. chicagocrusader.com
  • [○ 1 SOURCE] Residents have filed a class-action lawsuit against NIPSCO alleging failures in infrastructure maintenance. www.urbanmag-online.com
  • [○ 1 SOURCE] Indiana officials have launched an investigation into NIPSCO regarding its preparedness, restoration response, and use of customer-funded investments following the prolonged outage in Gary. www.urbanmag-online.com
  • [● 2 SOURCES] Blackstone acquired a 19.9% stake in NIPSCO for $2.16 billion. www.urbanmag-online.com · truthout.org