The Indiana Office of Utility Consumer Counselor (OUCC) is inviting public comments as it reviews Indiana Michigan Power's (I&M's) request for an increase in its electric base rates and charges.

The OUCC - the state agency representing ratepayer interests in cases before the Indiana Utility Regulatory Commission (IURC) - has not yet taken a position in this case but is scheduled to complete its review and file testimony on August 1.

Two public events regarding this case are scheduled for Tuesday, July 8 in Fort Wayne. Both events will take place at Homestead High School, 4310 Homestead Road:

• At 5:30 p.m., the OUCC will conduct an information meeting to discuss the regulatory process and describe public field hearing procedures.
• At 6:00 p.m., the IURC will conduct a formal public field hearing to accept oral and written consumer comments regarding I&M's rates. The comments will become part of the evidentiary record considered by the IURC in reaching its final decision. Commissioners are not permitted to answer consumer questions during the formal field hearing.

I&M - a wholly owned subsidiary of American Electric Power Company, Inc. (AEP) - provides electric utility service to approximately 455,000 residential, commercial and industrial customers in 20 northern, northeast and east-central Indiana counties. The utility's current base rates for Indiana customers were approved in 1993.

Electric utility base rates primarily cover infrastructure, operating and maintenance costs. This case is separate from I&M's semi-annual Fuel Adjustment Clause (FAC) process, which allows electric utilities to recover coal and other fuel costs on a dollar-for-dollar basis in addition to base rates. FAC cost recovery is subject to OUCC audits and IURC approval.

According to its testimony and exhibits in this case, I&M is seeking an additional $125.6 million in annual operating revenues from its Indiana customers through a base rate increase. A portion of the increase as proposed by I&M would be recovered through five new rate recovery mechanisms, or "trackers."

Trackers proposed by the utility would address regional transmission costs, environmental compliance expenses, energy efficiency programs, future infrastructure projects and off-system sales. The proposed trackers would provide for rate adjustments on a periodic basis, subject to OUCC review and IURC approval.

In its testimony, I&M advises that the proposed base rate increase is due to growth in operating and maintenance costs, along with numerous capital improvements to its transmission and distribution systems in Indiana.

Several additional parties have formally intervened in this case, including the City of Fort Wayne, City of South Bend, Citizens Action Coalition of Indiana, and a group of I&M's industrial customers (including General Motors Corporation, Praxair, Inc., Marathon Petroleum Company LLC, and others). The intervening parties are scheduled to file testimony August 1, the same date the OUCC's testimony is due.

In addition to the July 8 events in Fort Wayne, I&M customers are encouraged to submit written comments regarding the rate case to the OUCC. Comments should include the consumer's name, address, and a reference to IURC Cause No. 43306. Consumers can send comments to the OUCC by mail, fax or the Internet:

• Mail: Consumer Services Staff
  Indiana Office of Utility Consumer Counselor
  115 W. Washington St., Suite 1500 South
  Indianapolis, IN 46204
• Fax: (317) 232-5923
• E-mail: uccinfo@oucc.IN.gov
• OUCC Website: www.IN.gov/OUCC

The OUCC needs to receive all written comments regarding the I&M rate case no later than Tuesday, July 29. Additional information on this case, including links to the utility's testimony, is available on the OUCC Website at www.in.gov/oucc/2984.htm. Consumers with questions about submitting written comments can contact the OUCC's consumer services staff toll-free at 1-888-441-2494.

For additional information about the regulatory process and other utility consumer topics - including tips for managing energy bills and a guide to understanding electric rates - please visit the OUCC Website or call the agency toll-free.

 

(IURC Cause No. 43306)

The Indiana Office of Utility Consumer Counselor (OUCC) is the state agency that represents residential and business consumer interests in cases before state and federal utility regulatory commissions. To learn more, visit www.IN.gov/OUCC.

 

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