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Please contact your State Representative and ask him/her to vote NO on SB 410!
PROTECT RATEPAYERS from Bad Investments of Monopoly Utility Companies!
Current Status: Senate Bill 410 has passed out of the State Senate and is now being considered in the State House.
Background: SB 410 gives monopoly electric utilities the ability to raise rates quicker and earn higher profits for investing in “advanced metering infrastructure”, or AMI. SB 410 would allow utilities to charge ratepayers different rates according to the time of day they use electricity. The “incentives” include:
- So-called “timely recovery” of costs, or raising rates every three months to pay for new investment costs in AMI;
- Charging for so-called “lost revenues” resulting from ratepayers’ reduced usage;
A higher return on the cost of capital investments than authorized in the last rate case;
- Other unspecified financial incentives the utilities can get the IURC to approve.
The stated purpose of SB 410 is to reduce electric consumption and improve distribution at peak demand. While worthy goals, the bill would do little to help customers reduce usage but give utilities new ways to raise rates and make profits.
SB 410 is an end-run around an IURC investigation currently underway.
Federal law requires the Indiana Utility Regulatory Commission (IURC) to conduct an investigation to determine whether or not it is appropriate for electric utilities to provide and install time-based meters and communications systems for each of their customers. An IURC investigation is currently underway, and a decision must be rendered on or before August 8, 2007. SB 410 presumes the investment is sound, completely removing the IURC’s authority to render a decision as contemplated by federal law and possibly forcing ratepayers to pay for investments which may be improper or cost-prohibitive.
SB 410 undermines the critical regulatory process.
SB 410 requires the IURC to issue a determination on the eligibility of electric utilities’ presumed investments in AMI and related programs not later than 120 days from the date of application irrespective of whether the evidence requires more time to examine or whether more public input is needed. SB 410 completely undermines the IURC’s decision-making authority.
Ratemaking provisions in SB 410 “throw ratepayers to the wolves”!
SB 410 forces ratepayers to pay for new technology that may be unnecessary and too expensive. It also allows electric utilities to collect a higher “return” on those new investments than was authorized in the last rate case and it makes ratepayers pay all of the costs for the current meters.
Conclusion: Because Indiana’s electric utilities are monopolies, and we do not have a choice, the current regulatory framework is the only thing that protects ratepayers from monopoly abuses.
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