INDIANAPOLIS -- Indianapolis Power and Light customers will soon be getting higher bills.
Wednesday, the Indiana Regulatory Commission approved a settlement with the utility that will raise the average customer's bill about $5 per month.
IPL initially requested a $124.5 million increase in December 2017, and lowered it to $88.3 million in June 2018, saying the money is needed to cover the cost of their new Eagle Valley natural gas plant and other infrastructure improvements.
The new rates are expected to go into effect by the end of 2018. IPL will use the money to replace outdated coal plants with cleaner, more efficient gas plants.
As previously reported, the OUCC says the settlement will impact customers in the following ways:
For customers using more than 325-kilowatt hours (kWh) per month, the monthly residential customer charge will remain at $17.00. IPL had proposed raising the charge to $27.00.
For customers using 325 kWh or less per month, the monthly residential customer charge will rise from $11.25 to $12.50. IPL had proposed raising the charge to $16.00.
The utility will have a 9.99 percent authorized return on equity (ROE). IPL had sought to raise its authorized ROE to 10.32 percent.
All issues regarding tax relief due to the federal Tax Cuts & Jobs Act will be resolved.
IPL will contribute $150,000 in shareholder funds to the Indiana Community Action Association to expand low-income weatherization projects.
Using $650,000 in shareholder funds, IPL will initiate a three-year pilot program to forgive low-income customer arrearages.
IPL will implement its proposed “roundup” program on a three-year pilot basis, and contribute $100,000 in shareholder funds for operational costs. The program, similar to those offered by many rural electric membership cooperatives (REMCs), will allow customers to round their bill payments up to the next dollar, with the difference going to low-income customer assistance.
It will provide additional benefits negotiated by the case’s parties.