The state’s utility watchdog asked state regulators to stop a $71 million rate increase for Central Indiana electricity provider AES Indiana, arguing the regulatory commission didn’t fully weigh affordability in its decision last month.
The Indiana Office of Utility Consumer Counselor advocates for ratepayers, including residential, commercial and industrial customers of utility companies. It filed a petition for rehearing and reconsideration with the Indiana Utility Regulatory Commission, initiating an administrative process.
“Affordability is my utmost priority, and I believe the IURC needs to reexamine its position on things like shareholder profit and rate case expense,” said Utility Consumer Counselor Abby Gray in a statement after the filing. “Hoosiers should not be paying for expensive attorneys and other unreasonable expenses so that shareholders can pad their pockets. Ratepayers have been tightening their belts for years; it’s time for utilities to do the same.”
In its filing, the office argued that the rate increase decision unfairly placed the cost of some of AES Indiana’s expenses on ratepayers, including major storm costs, over a hundred vacant payroll positions, and the company’s return on equity rate.
“Basically, what the OUCC is asking is, ‘You made these judgment calls based on this evidence. We’re asking you to re-weight the evidence in a way that is more preferential to the people that we are statutorily asked to represent’ — so, ratepayers,” David Ober, a former commissioner with the regulatory commission, told WFYI.
The Citizens Action Coalition is a consumer advocacy group and a party to the case. Executive Director Kerwin Olson told WFYI it plans to join the OUCC’s petition and make a filing by the end of the day — the administrative deadline for a petition.
“We think affordability was ignored, especially understanding that residential customers are bearing the brunt of the burden here in terms of getting the largest increase of any customer class,” Olson said. “How does that meet the threshold of affordability?”
He also said they want to draw attention to the deal announced earlier this year for BlackRock and other investors to acquire AES Indiana’s parent company and the proposed data center in Monrovia.
“AES Indiana is reviewing the OUCC's petition for reconsideration and rehearing in our recently-approved rate order,” the company told WFYI in a statement. “We will continue to follow the process consistent with the state's regulatory construct. As always, our mission is to provide safe, reliable, and affordable electric service to our more than 530,000 customers across Central Indiana.”
In a separate statement after the petition filing, AES Indiana also announced additional programs to support efficiency and low-income customers.
The IURC approved the rate increase for AES Indiana last month. The decision drew criticism from Gov. Mike Braun, who initiated a shakeup of the commission and called for a different outcome.
Ober, the former commissioner, said the OUCC met the deadline for filing a petition. Now that the OUCC has filed a petition, other parties have time to respond. The IURC has 60 days to make a decision.
It can decide to uphold the original order, correct it, re-open the case for additional evidence, or reverse the previous order.
“If no action is taken within 60 days, then it’s deemed denied automatically,” Ober said.
Parties can ask the Indiana Court of Appeals for additional relief in that instance.
Contact WFYI data journalist Zak Cassel at zcassel@wfyi.org
