Class-action lawsuit filed against NIPSCO as storm power outages continue in NW Indiana

Community groups offering help to residents as storm recovery continues
Friday, August 21, 2026
LAKE COUNTY, Ind. (WLS) -- Thousands spent another day without power Friday in northwest Indiana.

Indiana Governor Mike Braun is now asking the federal government to issue a major disaster declaration to help with relief efforts across the state. The request estimates property damage costs have topped $5 billion.

Meanwhile, a class-action lawsuit against Northern Indiana Public Service Company has been filed. The lawsuit claims NIPSCO inadequately performed vegetation management in and around power lines and that fallen trees led to power outages that impacted people's lives.



As thousands of northwest Indiana residents remain without electricity following severe storms, families are struggling with mounting expenses, disrupted routines and growing frustration while awaiting power restoration.



Lori Bugielski, a Lake Station resident, said the ongoing outage has taken a toll on her family.

"It's mentally draining. I'm almost at my wits end," Bugielski said.

SEE ALSO | Track power outages in your area with the ABC7 Chicago Power Outage Tracker

On Friday, Bugielski brought her family to the River Forest Community School Corporation in Hobart, where meals and other services were being provided to residents affected by the outages.

Bugielski said her family has been without power since last week's storms and has been staying at hotels while waiting for electricity to be restored.



"We've had to be in and out of hotels, we've gone to libraries, and places where hotspots are so we can able to function have a job and work," she said.

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She estimated the financial impact has been significant.

"At least $1,500 between hotels and feeding the children throughout this whole ordeal," Bugielski said.

The River Forest Community School Corporation has been providing hot meals and hygiene products to affected families as outages continue across the region.



"Here at this site since Tuesday the need has grown everyday from 300 the first day to 550 yesterday, we're going to over that today," said Superintendent Kevin Trezak.

Some Indiana residents in one Gary community are dealing with another layer of issues due to these power outages.

People living in the Woods Park subdivision of Gary say they just got a new sewer system installed, but it needs power to work. It's causing pipes to backup and flood some yards.

Portable bathrooms and showers have been setup as the city works to get things back online, but some residents say those efforts aren't enough.

NIPSCO responds to lawsuit as NW Indiana storm power outages continue


A newly filed class-action lawsuit on behalf of Indiana residents alleges the widespread outages could have been prevented. Attorneys representing plaintiffs claim NIPSCO failed to properly manage vegetation and did not conduct adequate inspections of utility poles and power lines.



"This situation was predictable. It was obvious and it was preventable," said attorney Otto J. Shragal of the Allen Law Group.

NIPSCO denied the allegations, saying it maintains an active vegetation management program and plans to vigorously defend itself through the legal process.

The utility also addressed concerns from customers who remain without power while continuing to receive utility bills.

"With respect to customer's bills, we've suspended any kind of disconnection through the next week," said NIPSCO President Melody Birmingham. "We'll continue to work with our customers and put programs in place for any customers who have a difficult time paying that bill."

"So much damage was done, so many consumers were harmed, but it doesn't mean that the lawsuit is going to succeed," ABC7 Chief Legal Analyst Gil Soffer said.

Soffer said the plaintiffs face an uphill battle.

"Where were the trees in question? Were they within the zone for which the utility is responsible? Were they on private property? Were they outside of those areas? Each of those questions will have to be answered one by one," Soffer said.

NIPSCO issued the following statement:
"We strongly disagree with the characterization of NIPSCO's vegetation management practices in the Amended Complaint and the various press conferences held by the law firm of Kenneth Allen Law Group. We will vigorously defend the company through the legal process. NIPSCO's electric operations, including its active vegetation management program, are overseen by the Indiana Utility Regulatory Commission. NIPSCO's vegetation management spend has more than doubled since 2016, demonstrating our commitment and focus on maintaining a safe and reliable electric system. NIPSCO understands the impact that prolonged outages can have on our customers and communities, particularly following storms, and in particular, the severe weather events that caused unprecedented damage across NIPSCO's electric system that recently transpired. Safety and reliability are fundamental to how we operate, and we have established processes and procedures to maintain our electric system, including our vegetation management program. Our immediate focus remains on restoring service to affected customers safely and as quickly as possible."
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