OUCC Says IPL Rate Increase Unnecessary

Posted: Updated:

The Indiana Office of Utility Consumer Counselor recommends Indianapolis Power & Light's request to raise nearly $97 million through a rate increase to pay for its new natural gas plant in Morgan County be denied. The OUCC is instead recommending a smaller increase of only $4.9 million.

The consumer advocate agency's advice was detailed in testimony with the Indiana Utility Regulatory Commission after a six month analysis of the request. “Between the rate increase IPL received only two years ago and the evidence filed in this case, there is no justification for the size of the requested increase or for IPL’s proposed changes to its customer charges,” said Indiana Utility Consumer Counselor Bill Fine. “Our careful analysis of the data shows that the utility already has nearly ample revenue to provide safe, reliable service to its central Indiana customers while providing appropriate returns to shareholders.”

Instead, the OUCC recommends: 

  • A flat, monthly customer charge of $11.25 for each residential customer. (IPL proposes, in this case, to raise this charge from $17.00 to $27.00 for residential customers using more than 325 kilowatt hours (kWh) per month. Customers using fewer than 325 kWh now pay an $11.25 flat charge that would rise to $16.00 under the utility’s request.)
  • Maintaining IPL’s flat, monthly customer charge for small commercial customers at $30.00. This charge would rise to $40.00 under the utility’s request.
  • Recognizing and appropriately applying federal income tax decreases as a result of the 2017 Tax Cuts and Jobs Act.
  • Reducing IPL’s authorized return on equity to 9 percent. The utility’s current authorized return is 9.85 percent, and it is requesting an increase to 10.32 percent in this case.
  • Recognizing that IPL’s current revenues can cover the construction and financing costs for its newly built Eagle Valley Generating Station in Morgan County.
  • Recognizing lower operating costs due to staff reductions since IPL’s last rate case in 2016.
  • Denial of IPL’s proposed increase in vegetation management expense.

IPL will give its rebuttal testimony on June 21, and an evidentiary hearing is scheduled for July 16. The IURC decision on the increase is expected later in the year. For more specifics on IPL's proposed rate increase, click here. IPL Chief Executive Officer Craig Jackson recently appeared on Inside INdiana Business with Gerry Dick. You can view that interview by clicking the link below.

  • Perspectives

    • How to Ensure Proper 401(k) Benefits Education

      From pay rate to wellness programs, there are many important areas that employers need to pay attention to regularly; however, there is one that is often forgotten — 401(k) benefits. A 401(k) plan provides employees with the opportunity to deduct a portion of their pay and use it as a contribution towards retirement. Properly saving for retirement is vital to ensuring a healthy lifestyle after an employee’s career comes to an end, but 50 percent of Americans claim to not...



Company Name:
Confirm Email:
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections


  • Most Popular Stories

    • Hoosier Schools Among 'Best Colleges in America'

      Nearly two dozen Hoosier institutions are included in MONEY magazine's rankings of the Best Colleges in America. More than 700 schools are on the list, which was determined by a number of factors in three categories, including quality of education, affordability, and outcomes.

    • I-69 Delays Causing More Bloomington Traffic Problems

      Construction to complete section 5 of I-69 will take longer than expected and will impact students returning to IU. The "substantial completion" date for the stretch of interstate was August 31, but INDOT officials now say despite an accelerated schedule of 16-hour work days and six-day work weeks, the work won't be done for several more weeks.  INDOT says the construction will pose challenges for drivers in and around Bloomington through the end of the ...

    • (Image courtesy of Inc.)

      Hoosier Companies Part of Inc. 5000

      An annual ranking of the fastest-growing private companies in the country includes 63 Hoosier businesses. Greenwood-based The Garrett Companies is again tops among Indiana companies on the Inc. 5000 list, breaking into the top 10 in the U.S. for the first time. Its number 10 national ranking is the highest for an Indiana-based business since 2016 when eLuxurySupply.com in Evansville placed fourth.

    • (Rendering of phase two of the Riverfront Fort Wayne project provided by the city of Fort Wayne.)

      Fort Wayne Riverfront Contract Pulled

      A proposed $2.5 million contract for the design work for the next two phases of the Riverfront Fort Wayne project has been pulled. Our partners at WPTA-TV report the Fort Wayne City Council withdrew the contract, which was set to go to Philadelphia-based DAVID RUBIN Land Collective.

    • Indy Airport Poised For Another Record Year

      A new report shows the Indianapolis International Airport is on pace to break last year's passenger traffic record. Through the first half of the year, the Indianapolis Airport Authority says passenger totals have risen 7 percent on the backs of record-breaking April, May and June traffic figures. In 2017, 8.77 million passengers flew through IND. In an interview with Inside INdiana Business, Executive Director Mario Rodriguez attributed the increases to...