IPL increase in fixed charge and rates approved. IURC rejects all of CAC’s recommendations.

Fri, 03/25/2016 - 14:54

On March 16th, the Indiana Utility Regulatory Commission (IURC) approved a significant increase in the monthly bills of electric customers of Indianapolis Power & Light (IPL). 

The IURC’s final order authorized IPL to increase rates by $29.6M per year. However, on March 23rd, the IURC issued a correction to the final order and authorized IPL to increase their rates by an additional $1.2M, raising the total annual increase in revenues to a little over $30.8M.

How much monthly bills of residential customers will actually increase will be unknown until IPL files what is known as a compliance filing, which will allocate the $30.8M increase in annual revenues to the numerous rate classes.

In addition to the $30.8M increase in rates, the IURC also approved IPL’s request to increase the monthly fixed customer charge of residential customers, which is the amount customers pay regardless of how much energy they consume.

Citizens Action Coalition, along with our partners at the Indiana Association for Community and Economic Development (IACED), the Indiana Coalition of Human Services (ICHS), the Indiana Community Action Association (INCAA), the Indiana State Conference of the National Association for the Advancement of Colored People, Inc. (Indiana NAACP), and the National Association of Social Workers Indiana Chapter (NASW-IN), intervened in the case and recommended the IURC reject the proposal to increase the fixed monthly charge. 

Unfortunately, the IURC did not accept our recommendation and authorized an increase in the monthly fixed charge on most customers from $11.00 to $17.00, a 55% increase! Low usage customer (primarily low and fixed income households, most notably senior citizens) who use 325 kWh or less per month will see their monthly fixed cost increased from $6.70 to $11.25, an astonishing 68%!

CAC and our partners also made the following recommendations, all of which the IURC rejected:

  • Recommended that the Commission direct IPL to implement a comprehensive low-income bill payment assistance program;

  • Recommended that IPL report monthly to the IURC and stake-holders data such as billing, receipts, arrearages, and disconnections, regarding general residential and low-income customer accounts;

  • Recommended that the IURC reject IPL’s proposal to continue reliance on declining block rates.

CAC is continuing to review the order and consider our options moving forward regarding appealing this unfortunate decision. Stay tuned for more information.

To view the IURC final order in the case, click here: http://www.in.gov/iurc/files/201603161357_44576__44602.pdf

To view CAC’s testimony in the proceeding, click here: https://myweb.in.gov/IURC/eds/Modules/Ecms/Cases/Docketed_Cases/ViewDocument.aspx?DocID=0900b631801ca031

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