Consumer News... For You! Febuary 2023

Feb 2023
ASU Rates

The IURC's recent order in the American Suburban Utilities rate case will allow for a much lower increase than the utility's proposal. 

Monthly residential sewer rates for the Tippecanoe County utility will rise from $59.08 to $65.57. ASU initially requested a $99.66 monthly rate.

The Commission agreed with a number of the OUCC's recommendations. OUCC attorneys and technical analysts put considerable efforts into this complex and challenging case, presenting recommendations on the utility's capital structure, numerous line items for operations and maintenance, and ASU's request for an authorized return on equity that would have been much higher than returns the Commission has approved for other water and wastewater utilities in recent years.

AES Eagle Valley

A settlement agreement regarding AES Indiana’s Eagle Valley generating station has received Commission approval, ensuring that $21 million that could have been recovered through rates will not be passed through to customers.

The utility had sought to recover about $41.5 million in purchased power costs, following two outages that kept the plant off-line for approximately 11 months.

Among the approved agreement's ratepayer protections:

  • The remaining $20.5 million will be recovered over a two-year period rather than the one-year period the utility had requested, reducing the impact on monthly customer bills.
  • Ratepayers will receive a $6.8 million credit over a three-month period.
  • The utility agrees not to seek a return on any capital investment incurred to repair and replace damaged equipment as a result of the extended outages.

Parties to the agreement include the OUCC, a group of AES Indiana industrial customers, the Citizens Action Coalition, and AES Indiana.

CenterPoint Wind Case

Consumer comments are invited through Feb. 20 on CenterPoint Energy's request to purchase and operate a new wind generating facility. The out-of-state facility would be operational by 2025, with a cost estimate of $636 million. CenterPoint Energy's current integrated resource plan calls for the inclusion of 300 megawatts (MW) of wind capacity in its generation portfolio; the utility currently has 80 MW.

According to the utility's testimony, the proposal would add $19.86 to a monthly electric residential bill for 1,000 kilowatt hours (kWh), not including offsets from the potential sale of renewable energy credits. Rate changes would most likely take effect in 2024. The OUCC is reviewing the request with its primary focus on affordability concerns and whether the proposal would give the utility the most cost-effective means of meeting its customers' long-term reliability and resilience needs. OUCC testimony is due Feb. 27. 

Additional Case Updates