INDIANAPOLIS (AP) — Customers of Northern Indiana Public Service Co. will pay a lower rate of increase than the company proposed under an agreement.

A statement from NIPSCO says the settlement must be approved by the Utility Regulatory Commission. New rates should not take effect until the second half of this year.

Rates will increase for residential customers by 5.4 percent. That’s down from the 11 percent NIPSCO originally proposed in October.

The fixed monthly rate charge will increase 28 percent, to $14. That is lower than the $20 charge proposed.

The deal was reached among NIPSCO, the Indiana Office of Utility Consumer Counselor, the power company’s industrial customers, the Indiana Municipal Utility Group and the United Steelworkers. There was no opposition from La Porte County.