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Some Question Utility's Need For Pricey PR Help

Contract Could Cost Ratepayers $120K Annually

POSTED: 5:36 pm EDT October 14, 2009
UPDATED: 7:28 pm EDT October 14, 2009

Indianapolis Water officials are taking heat after hiring a high-priced public relations firm in the midst of asking for a double-digit rake hike.

According to a memo written by Sease, Gerig & Associates and signed by Department of Water Chairman Samuel Odle, the company would bill a minimum of $4,000 a month and a maximum of $10,000 a month, or up to $120,000 a year, 6News' Joanna Massee reported.

It comes after the department's communications director -- who earned a part-time salary of $32,000 a year -- left her post.

Indianapolis Water officials said hiring the PR firm is a matter of necessity.

"The reason we've hired Sease, Gerig is because our communications person resigned, and we needed some immediate help to address the largest and most substantial rate case in the history of this entity," said Executive Director Matthew Klein.

In September, the utility requested a rate hike of more than 34 percent, just months after the Indiana Utility Regulatory Commission approved an 11 percent increase when the company slipped into debt amid the recession.

The Office of Utility Consumer Counselor was critical of the proposed public relations contract in a statement to 6News.

"OUCC believes (the) petitioner should be focused on reducing costs, rather than increasing them," Deputy Consumer Counselor Jeffrey Reed said in the statement.

Indianapolis Water customers also questioned the expenditure.

"(That $120,000 a year) sounds like an extreme amount of money," said customer Loretta Qadir.

"I don't believe something like that should be outsourced," said Traci Corbin. "I think you should hold that in house and save the money."

There will be public hearing held on the proposed rate increase in January and May. About 1 million customers are on Indianapolis Water's system.

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