Changes maybe coming to the bills of IPL customers

INDIANAPOLIS (WISH) – There could soon be changes to future bills for hundreds of thousands of Indianapolis Power and Light customers.

The state’s representative for utility customers says IPL should be forced to cut $90 million from its request to increase electric bills. This recommendation issued late last week could have a huge impact on IPL customer bills.

The Office of Utility Consumer Counselor says IPL “Already has nearly ample revenue to provide safe, reliable service to its Central Indiana customers, and give appropriate return to shareholders.” 

The OUCC says that’s especially true given IPL’s ‘s rate increase just two years ago. 

The office suggests IPL charge a flat monthly fee of $11.25 to all residential customers. However, IPL wants that fee to be $16 to $27 per month.

They also want IPL to pass along more of the tax savings from last year’s federal tax reform  to customers. The group also points out that staff reductions at the utility since the last rate hike have already meant lower operating costs for IPL.

IPL has said it’s plan would increase the average customer’s bill by $11.25 cents per month. The OUCC plan does not give an average increase per customer, but would be considerably less. The state is scheduled to hold hearings on the plan in July, and a final decision is expected by the end of the year. 

If they approve the rate request, customers would see the new rates on their bills in early 2019.

Recommendations in the OUCC’s testimony include:

•  A flat, monthly customer charge of $11.25 for each residential customers. 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 nine 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.