While non-binding, this new resolution will be sent to the Indiana Utility Regulatory Commission (IURC), the state agency which can approve or deny the energy utility’s proposal.
CEI South — the local CenterPoint Energy — has filed a petition with the IURC that would raise monthly electric rates for a typical residential customer by about $28 dollars by 2026.
The increase in late 2024 would be $10, $6 in 2025 and $12 in 2026.
"We have worked diligently and responsibly in the 14 years since our last base rate case to make prudent investments and minimize the impact to customers as we continue to perform our essential work," said Noah Stubbs with CenterPoint, via email. This is in response to the draft resolution text. "We look forward to continuing to work constructively with various stakeholders through the regulatory process."
The entire response can be read at the bottom of this story, above the resolution text.
Commissioners Mike Goebel and Justin Elpers read sections of the resolution into the record at the Tuesday afternoon meeting.
“.... Whereas one major factor affecting businesses and residents when deciding on location or expansion is utility cost,” read Goebel. Proposed gas rate increases are about 30-percent, and CEI is also asking for a 114-percent increase in the monthly fixed charge.
“... Centerpointe has had the highest authorized return on equity or profit margin for shareholders for many years,” read Elpers. “In contrast, Indiana’s other four investor-owned electric utilities have an authorized return on equity below 10-percent.”
Increases would in part cover the costs of revamping coal-fired plants that are now set to be decommissioned — a cost the commission thinks shouldn’t belong to ratepayers.
Commissioner Cheryl Musgrave said the resolution will be sent to their entire legislative delegation, and shared on multiple platforms.
“And a copy can be distributed to anyone who would like it,” she said. “We hope that the IURC hears our petition.”
Technically, this is an official “comment” to the IURC. It also asks the Indiana General Assembly, that sales tax be stripped from energy bills.
"Just as food is exempt from sales tax, so should sales tax on utilities as they are also fundamental to sustain human life,” reads the resolution.
The Evansville City Council is researching how they may intervene to stop the rate hikes.
There is another hearing February 29 at the Old National Events Plaza.
CenterPoint Energy provided this response to the resolution:
"We have worked diligently and responsibly in the 14 years since our last base rate case to make prudent investments and minimize the impact to customers as we continue to perform our essential work. Our focus remains on maintaining a safe, resilient and reliable system to further meet the current and future energy needs of the southwestern Indiana region. We look forward to continuing to work constructively with various stakeholders through the regulatory process."
Support independent journalism today. You rely on WNIN to stay informed, and we depend on you to make our work possible. Give to grow our local reporting today. Donate now
Resolution language below:
RESOLUTION NO. CO.R-02-24-003 RESOLUTION OPPOSING THE VERIFIED PETITION OF SOUTHERN INDIANA GAS AND ELECTRIC COMPANY D/B/A CENTERPOINT ENERGY INDIANA SOUTH (“CEI SOUTH”) FOR RATE CHANGES BEFORE THE INDIANA UTILITY REGULATORY COMMISSION (IURC), CAUSE NUMBER 45990
WHEREAS, the Board of Commissioners of Vanderburgh County, Indiana recognizes the costs Vanderburgh County residents pay for electricity and natural gas;
WHEREAS, CEI South has filed a petition with the Indiana Utility Regulatory Commission that would raise monthly electric rates for a typical residential customer by about Ten Dollars in late 2024, nearly Six Dollars in early 2025, and by more than Twelve Dollars in early 2026;
WHEREAS, one major factor affecting businesses and residents when deciding on location or expansion is utility costs;
WHEREAS, the Board of Commissioners of Vanderburgh County, Indiana seeks to foster growth and development by providing the most competitive business and regulatory climate in order to reduce costs and expenses on its citizens and businesses;
WHEREAS, excessive and burdensome utility costs could threaten the growth and expansion of Vanderburgh County by adding burdens and impediments to new residents looking to relocate to Vanderburgh County, hinders business expansion by adding uncompetitive rates on local business and might deter new businesses from locating in Vanderburgh County;
WHEREAS, the Board of Commissioners of Vanderburgh County, Indiana has heard from many constituents and businesses opposing the requested rate increases;
WHEREAS, CEI South’s rates and taxes already rank the highest in the state since 2008 and among the highest in the region and this increase will only further the disparity between utility rates in Vanderburgh County and other nearby regions that might be competing for the same residents and businesses;
WHEREAS, the average customer will see their monthly electric bills increase of $47.24 (30.7%) by 2026 while 22% of CEI South customers who are electric heating customers (Rate EH), who will see their average monthly bill increase by $63.33 by 2026;
WHEREAS, CEI South also requests a 114% increase of the monthly fixed charge of $23.20 before you even use any electricity disproportionately impacting low- and fixed-income households (seniors, people with disabilities, homes with children and other vulnerable populations), while penalizing households that conserve energy and make their homes more efficient;
WHEREAS, CEI South and their predecessors spent over Five Hundred Million Dollars in pollution control equipment for aging coal fired power plants, but then retired 2 many of them before recovering these costs leading to this filing requesting the ratepayers of Vanderburgh County to cover CEI South’s business decisions while still ensuring a profit;
WHEREAS, CenterPoint has had the highest authorized return on equity, or profit margin, for its shareholders, for many years. In this case, CenterPoint Electric is proposing to keep its 10.40% return on equity. In contrast, Indiana’s other four investor owned electric utilities have an authorized return on equity below 10%; and
WHEREAS, the Board of Commissioners of Vanderburgh County, Indiana respectfully requests the Indiana General Assembly to waive sales tax on utility payments to provide some relief for its citizens and businesses. Just as food is exempt from sales tax, so should sales tax on utilities as they are also fundamental to sustain human life.
NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of Vanderburgh County, Indiana hereby opposes CEI South’s request as proposed.
So adopted this 20th day of February, 2024.
THE BOARD OF COMMISSIONERS OF VANDERBURGH COUNTY, INDIANA