CenterPoint Energy Electric Infrastructure Plan
A brief summary of the TDSIC law
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). The IURC has 120 days to rule on such a request.
- 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 term.
- Pending Plan (2024-2028)
CenterPoint Energy is requesting Commission approval of a new $454 million electric infrastructure plan. The plan (Cause No. 45894) would be effective through 2028.
The OUCC filed its proposed order for the IURC's consideration on Oct. 12, 2023. Under the law’s timing requirements, the IURC must issue an order on the proposed plan by Dec. 20, 2023.
A public field hearing was held in Evansville on Sept. 13, 2023. The OUCC issued a media release on Aug. 31, 2023 with more information.
The OUCC filed the following testimony on Aug. 16, 2023:
The utility filed its petition and the following testimony on May 24, 2023:
- Previous Plan (2017-2023)
The IURC approved the first seven-year infrastructure improvement plan for CenterPoint Energy's southwestern Indiana electric utility (formerly Vectren) in Cause No. 44910.
The OUCC's fact sheet, distributed at the IURC's May 2, 2017 public field hearing in Evansville, offers additional information.
The utility filed its request under a law (Senate Enrolled Act 560) passed by the Indiana General Assembly in 2013.
- The IURC approved Vectren's first electric TDSIC tracker request (44910 TDSIC 1) on December 20, 2017, raising a monthly residential bill for 1,000 kWh by 57 cents. The OUCC filed testimony (Blakley and Golden) on October 23, 2017.
- Vectren's second TDSIC tracker request (44910 TDSIC 2) received Commission approval on May 23, 2018. It increased the 1,000 kWh monthly residential bill by an additional 72 cents. The OUCC filed testimony (Blakley and Alvarez) on April 2, 2018.
- The third proposed tracker (44910 TDSIC 3) received Commission approval on December 5, 2018. It reduced the bill for 1,000 kWh by $5.49, under the terms of a settlement agreement in the IURC's investigation regarding the federal Tax Cuts and Jobs Act of 2017 and its implications for utility rates.
- The TDSIC for a 1,000 kWh residential bill was set at $2.55 under Vectren's request approved on May 29, 2019.
- The utility's November 25, 2020 TDSIC tracker adjustment increased the TDSIC charges for a 1,000 kWh monthly residential bill to $5.42.
- The utility's May 26, 2021 adjustment raised TDSIC charges to $5.77 for a 1,000 kWh monthly residential bill.
- 44910 TDSIC 9 received Commission approval on Nov. 24, 2021, raising the TDSIC charges for a 1,000 kWh monthly residential bill to $6.49.
- 44910 TDSIC 10 received Commission approval on May 25, 2022, raising the TDSIC charges for a 1,000 kWh monthly bill to $7.21. The OUCC filed testimony (Blakley and Haselden) on Apr. 4, 2022.
- 44910 TDSIC 11 received Commission approval on Nov. 23, 2022, raising the TDSIC charges for a 1,000 kWh monthly bill to $8.27. The OUCC filed testimony (Blakley) on Oct. 3, 2022.
- 44910 TDSIC 12 received Commission approval on May 30, 2023, raising the TDSIC charges for a 1,000 kWh monthly bill to $10.79. The OUCC filed testimony (Blakley) on Apr. 3, 2023.
The plans in these cases only affect CenterPoint Energy's electric utility in southwestern Indiana. Separate infrastructure plans for the company's Indiana natural gas utilities were approved in 2014.