In 2014, Indiana Michigan Power Company (I&M) requested IURC approval of a long-term plan for electric transmission, distribution and storage system improvements, including incremental rate recovery of those costs as the projects proceed. I&M has filed its request under a law (Senate Enrolled Act 560) passed by the Indiana General Assembly in 2013.
The OUCC filed testimony on January 12, 2015 recommending partial denial of I&M's requested rate recovery. Please see the agency's news release for a summary.
The IURC denied I&M's requested Plan and Rate Mechanism on May 8, 2015.
OUCC News Releases:
- May 8, 2015: Statement on Commission orders
- January 12, 2015: OUCC Testimony
- October 31, 2014: Consumer Comments Invited
A brief summary of the 2013 law
Indiana Code 8-1-39 allows electric and natural gas utilities to submit 5-to-7-year infrastructure improvement plans for IURC approval. It requires the IURC to rule within 210 days once such a request is filed.
- Once a 7-year 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 total retail revenues each year.
- 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 7-year period.
All filings in the cases are available by visiting the IURC's Electronic Document System and entering the appropriate cause number (44542 for the proposed plan, 44543 for the proposed rate methodology).
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