OUCC Says IPL Rate Increase Unnecessary

Posted: Updated:
INDIANAPOLIS -

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

    • Mitigating Your Company’s Cybersecurity Risk

      Frequently, I encounter people who think that a software developer understands all languages and can “fix” anything tech related. While that may be true for a few, areas of expertise within tech evolve as rapidly as the technology itself. For instance, there was a time (not long ago) when operating in the cloud was revolutionary. Today, it is considered best practices for some or all of an organization to function within a cloud. Managed information technology began with...

    More

Subscribe

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

Events



  • Most Popular Stories

    • (photo courtesy Dax Norton)

      Whitestown Tops Indiana's Fastest-Growing Communities

      The Indiana Business Research Center at the Indiana University Kelley School of Business says Whitestown in Boone County is Indiana's fastest-growing community for the eighth consecutive year. The center says the town's population nearly tripled, from 3,132 in 2010 to 8,627 last year. Westfield in Hamilton County is not far behind. Its population grew 5.2 percent in 2018, according to information reported by the U.S. Census Bureau. Other communities on the list include...

    • (Image courtesy of the Indiana Economic Development Corp.)

      Indy-to-Paris Flight Celebrates One Year

      One year after the first nonstop flight from Indianapolis International Airport to Paris, Airport Authority Executive Director Mario Rodriguez says the flight is "fully meeting our expectations." He says, on average, more than 1,000 passengers per week fly between Indianapolis and Paris. Delta Air Lines Flight 500 marked IND's first year-round, nonstop transatlantic air service to Europe. The airline increases the route's frequency throughout the spring, summer and fall...

    • (photo courtesy of Farmer's Fridge)

      Farmer's Fridge Expands to Indianapolis

      A Chicago-based company is looking to make fresh, healthy food as convenient in Indianapolis as a candy bar. Farmer’s Fridge has expanded to more than a dozen locations in the Indy market with its "smart fridges" the size of vending machines, which feature a variety of freshly-made products such as salads, bowls and snacks. Rachel Rischall, director of communications for Farmer's Fridge, says the food is made fresh every day and shipped to nearly 300 fridges in...

    • The Waterside project aims to transform 100-acres of the former GM Stamping Plant site. (photo courtesy of Ambrose Property Group)

      Ambrose, Glick Partner on Waterside

      Indianapolis-based Ambrose Property Group has announced a key partnership for the redevelopment of the former GM Stamping Plant in downtown Indianapolis. The commercial real estate firm is teaming up with the Gene B. Glick Co. to build and manage apartments as part of the $1.4 billion mixed-use redevelopment project. Ambrose says the partnership is also part of plans to catalyze "philanthropic and community-centric strategies to strengthen Indianapolis." The firm also...

    • Pearl will take the position on May 22

      Bloomington Launches Online Economic Development Tool

      The city of Bloomington has officially launched its new online development tool. The platform will streamline public data for current and prospective business owners and entrepreneurs.