IPL Infrastructure Plan
UPDATE: The IURC has approved IPL's proposal in a March 4, 2020 order.
Indianapolis Power & Light Co. (IPL) is seeking IURC approval of a seven-year, $1.2 billion infrastructure plan (Cause No. 45264). Under state law, the IURC must issue a final order on the plan by February 19, 2020. The OUCC filed testimony (Blakley and Krieger) on October 7, 2019.
If the plan is approved, then IPL will be allowed to seek incremental rate increases during the plan's life, as described below.
The IURC held public field hearings in September 2019. The OUCC issued an August 19, 2019 news release to invite consumer comments.
For more information on providing comments, please see the OUCC's guide to speaking out on pending cases.
Indiana Code 8-1-39 allows electric and natural gas utilities to submit infrastructure improvement plans for IURC approval. A plan may cover a 5- to 7-year range. The IURC must rule within 210 days once such a request is filed.
- Once a plan receives IURC approval, the utility may request incremental rate increases every 6 months to pay for the projects. The rate adjustment is referred to as the Transmission, Distribution and Storage System Improvement Charge (TDSIC). OUCC testimony is due within 60 days of the utility's filing. The IURC has 120 days to rule on such a request.
- Annual TDSIC rate increases are limited to no more than 2 percent of a utility's total retail revenues.
- The TDSIC rate mechanism (or tracker) allows the utility to recover 80 percent of the costs as they are incurred. The remaining costs are deferred until the utility's next base rate case, which must be filed before the end of the plan's lifespan.
This page will be updated based on case developments.