Enough is Enough! I&M Wants You to Pay 22% More on Your Electric Bills (and the rate hikes won’t stop there).

Thu, 04/26/2012 - 12:51

 

 

 

 

 

 

Indiana Michigan Power wants the Indiana Utility Regulatory Commission (IURC) to let them raise your base rates by an unwarranted $147.8 million! TELL THE IURC TO SAY NO!!! I&M’s scheme for excessive rate increase hurts residential ratepayers by:

  • Forcing you to subsidize industrial customers by re-allocation of transmission, distribution and other capital costs;
  • Eliminating the $37.5 million annual credit you’re receiving on your bill right now as a result of CAC’s involvement in their 2009 rate case. I&M agreed to give you this credit because they sell extra electricity for profit on the wholesale market, and that electricity comes from power plants paid for by you as a ratepayer;
  • Increasing the monthly service charge on residential customers 14.7%; and
  • Increasing the energy charge on residential customers 40%, from 6.75 cents per kilowatt hour to 9.449 cents per kilowatt hour.

In addition to the $147.8 million rate hike, I&M is seeking:

  • An additional $1.414 billion for pollution control at the Rockport coal-fired power plant; AND
  • An additional $1.4 billion for major work scheduled for the Cook nuclear power plant in Bridgman, Michigan.

In testimony filed with the IURC, I&M calls the electric rates you’re paying “confiscatory,” implying that you, as a residential ratepayer, are stealing profit from them! I&M President, Paul Chodak, says in his testimony before the IURC that “I&M rates are not just and reasonable.” Chodak also complains that I&M only made $106.7 million in profit between June, 2010, and May, 2011. Apparently, raising YOUR RATES over 22% so I&M, a state-franchised monopoly, can realize excessive profits will make their rates “just”!

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