AML&P Rate Case (IURC Cause No 43411)

The following fact sheet was distributed at the IURC public field hearing and OUCC information meeting held on Apr. 14, 2008 in Anderson.

OVERVIEW – AML&P REQUEST

The City of Anderson is seeking an increase in its rates and charges for municipal electric utility service. The city’s request is pending before the Indiana Utility Regulatory Commission (IURC) in Cause No. 43411.

• If the request filed by Anderson Municipal Light & Power (AML&P) were approved, the monthly base rate for a residential customer using 1,000 kilowatt hours (kWh) of electricity would increase from $62.75 to $69.40.
• An AML&P customer’s electric bill is comprised of the base rate, in addition to a quarterly billing adjustment for the dollar-for-dollar recovery of wholesale power costs. The wholesale adjustment is subject to IURC approval.
• In addition to the rate request, AML&P is seeking IURC authorization to issue up to $5.89 million in long-term debt.
• In testimony filed with the IURC, AML&P states it is requesting the rate and financing changes to cover the costs of infrastructure improvements, including new meters and a new substation, along with increases in operating and maintenance costs.
• Any changes in a regulated utility’s base rates must be approved by the IURC before taking effect. Indiana law allows regulated utilities to petition for rate cases no more frequently than once every 15 months.
• AML&P’s current base electric rates were approved in April 2003.
• This case would only affect the city’s electric rates. Water rates are not at issue in this proceeding; municipal sewer rates and stormwater charges are exempt from IURC jurisdiction under Indiana law.

OVERVIEW – OUCC INVOLVEMENT

The Indiana Office of Utility Consumer Counselor (OUCC) is a separate state agency from the IURC, and is the statutory representative for the interests of all utility consumers (residential, commercial and industrial) in cases before the IURC.

• The OUCC has not yet taken a position in this case, with the agency’s legal and technical staff reviewing the utility’s request and evidence.
• The IURC has established a May 9 deadline for the OUCC to complete its review and file testimony.
• The OUCC’s testimony will be available online at after being filed with the IURC.

TIMELINE

December 21, 2007: The City of Anderson filed a petition with the IURC initiating this case.

February 6, 2008: The IURC issued a pre-hearing conference order establishing a procedural schedule.

March 5: The city filed testimony and exhibits in support of the AML&P request.

April 14: An IURC public field hearing is being held in Anderson.

May 9: The OUCC is scheduled to file testimony in this case.

May 19: The city is scheduled to file rebuttal testimony.

May 27: An IURC technical evidentiary hearing is scheduled to begin at 9:30 a.m. at the National City Center in Indianapolis. While evidentiary hearings are open to the public, participation is typically limited to cross-examination of technical witnesses who have filed testimony on behalf of the case’s formal parties.

IURC final orders are issued at the Commission’s weekly Conferences. Conferences are typically held on Wednesday afternoons, with agendas posted 48 hours in advance at: www.in.gov/iurc/procedures/2008/08_agendas/08agenda_index.html.

A settlement agreement is possible in any legal proceeding; all hearing and filing dates in any legal proceeding are subject to change.

WHAT WILL HAPPEN AT THE PUBLIC FIELD HEARING

An IURC public field hearing is a formal, legal proceeding. It is presided over by an Administrative Law Judge and recorded by a court reporter, with at least one Commissioner present.

Consumers may make sworn written or oral comments on the pending case. Consumer comments are given equal consideration whether they are written or oral.

Attorneys for the case’s formal parties – the utility and the OUCC – participate.

A public field hearing does not include a question and answer format; it is designed to allow sworn consumer testimony under oath. IURC Commissioners are not allowed to answer questions, as they will ultimately weigh the evidence and render a final decision.

No final IURC decision in the case will be made during the field hearing.

ADDITIONAL INFORMATION

All publicly filed documents in this case are available for review on the IURC Website by:

• Visiting www.in.gov/iurc
• Clicking the “Electronic Filing” link
• Clicking the “Search Cases” link near the upper left corner of the following page
• Entering docket number 43411 in the first field on the search page

Case updates will also be posted on the OUCC Website.

General Agency Information

Indiana Office of Utility Consumer Counselor (OUCC)

• State agency
• Represents the interests of all Indiana utility consumers – including residential, commercial and industrial customer interests – in cases before the IURC and federal utility regulatory commissions
• Staff of attorneys, accountants, engineers, economists, consumer services and support personnel

Indiana Utility Regulatory Commission (IURC)

• State agency
• Regulates many, but not all, Indiana utilities
• Regulates utility rates, financing, service territory, quality, etc.
• Neutral, fact-finding body required by law to make decisions that balance the interests of utilities and consumers