CAC: “IPL wants a 51% increase in base rates. Tell them NO!”

Posted by Laura Arnold  /   March 06, 2015  /   Posted in AES, Indiana Utility Regulatory Commission (IURC), Indianapolis Power and Light (IPL), Office of Utility Consumer Counselor (OUCC), Uncategorized  /   1 Comments

IPL wants a 51% increase in base rates. Tell them NO! <Click this link for more details.

Information below is posted at

by Citizens Action Coalition (CAC) of Indiana

In December 2014, IPL filed their first base rate case (Cause No. 44576) before the Indiana Utility Regulatory Commission (IURC) since April of 1994.  IPL is asking the IURC for permission to raise their annual operating revenues by $67.8 million, significantly increase the amount you pay regardless of how much energy you use, and raise other fees by as much as 220%.

Charging more for using less has a disproportionate impact on low and fixed income households (seniors, disabled, and other vulnerable populations) AND penalizes households that are conserving energy and making their homes more energy efficient.

Specifically, IPL wants to:

  • Increase the monthly fixed cost on most customers to $17.00, a 55% increase. Low usage customers (low and fixed income households, most notably senior citizens) who use 325 kilowatt hours or less per month will see their monthly fixed cost increase by 68% to $11.25!
  • Increase per kilowatt hour charges for the first 500 kWh used each month by 44% and every kWh used thereafter by 66%.
  • Increase per kilowatt hour charges (over 1,000 kWh) for households that are electrically heated or have electric hot water heaters by 90%.

This would mean the residential base rate of $66.50 (for a household using 1,000 kWh per month) approved in IPL’s last base rate case would increase to $100.47 before taxes. A 51% INCREASE in base rates!

In the last 10 years despite not filing a base rate case, IPL’s monthly bills have increased nearly 44% for the average customer using 1,000 kilowatt hours per month.

During that same time period, the median annual income in Indianapolis has declined nearly 12%, or almost $7,000, while households struggle with significant increases in the cost of energy, health care, food, and other necessities.

This increase in monthly bills is being caused by IPL’s abuse of adjustable rate mechanisms, more commonly referred to as “trackers” or “riders”.  In this case, not only is IPL asking the IURC to let them keep all of their existing trackers, they want the IURC to approve three new trackers which will lead to even more frequent bill increases.

Moreover, this 51% increase in their residential base rate DOES NOT INCLUDE $1.137 billion in increases that IPL has already received approval for to build a new natural gas plant, convert two coal-fired units to natural gas, and install pollution control on their antiquated and dirty coal plants.

But wait, there’s more!

In addition to the $1.137 billion that is not included in this rate increase, this case also DOES NOT INCLUDE ANOTHER $332 million that IPL is currently seeking approval for before the IURC in Cause No. 44540 to install new wastewater systems at their power plants and convert Harding St. 7 from coal to natural gas.

That’s nearly $1.5 billion in approved or pending increases that IPL wants YOU to pay above and beyond the 51% rate increase they’re asking for in this case.

One Comment

  1. Ranjeet April 2, 2015 2:22 am Reply

    You can also Download IPL Schedule in PDF & IPL 2015 Fixtures in Excel format.

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