RP&L wants local voters to let it leave IURC jurisdiction

RICHMOND, Ind. — The Richmond Power & Light board took a step Tuesday that would allow Richmond voters to decide if RP&L should withdraw from the Indiana Utility Regulatory Commission's jurisdiction.

Richmond Common Council, whose members serve on the RP&L board, must now pass an ordinance placing the question on the November ballot. Council members said RP&L should have withdrawn long ago.

"It's just ridiculous for us to stay in the IURC," said Larry Parker, who made the motion for the RP&L board to authorize withdrawal. "It was good in the beginning as an overseer."

Ron Oler said RP&L should have been the first municipally owned electric utility to withdraw. He noted that RP&L's board, because it is comprised of Common Council members, is accountable to voters.

The ballot question would read: "Shall the municipally owned utility be taken out of the jurisdiction of the utility regulatory commission for approval of rates and charges and of the issuance of stocks, bonds, notes or other evidence of indebtedness?"

Foster said RP&L is among seven of the 72 municipally owned Indiana utilities yet to withdraw from IURC jurisdiction. All 38 electric cooperatives have withdrawn.

The IURC is an agency created in 1988 that regulates a utility's rates and charges, its ability to borrow money and its rules and policies. It includes five governor-appointed commissioners.

Foster presented figures from RP&L's recent process to implement a three-phase rate increase that began last year. Working through the IURC cost RP&L $837,688.90 in legal, consultant and IURC fees. With about 22,500 metered RP&L customers, that cost each customer about $37.23.

Continuing fees associated with IURC membership will cost $18,762.50 during 2021 and 2022. As RP&L works through its coal ash solution and begins other projects, fees will continue to mount.

RP&L would still conduct less-costly, local rate studies prior to any rate changes, Foster said. A change would require approval of the RP&L board.

The current three-phase increase is the first increase in 15 years. Foster said RP&L for the future prefers smaller, more-frequent increases rather than the larger, infrequent increases. He said local control will result in better-planned rate increases.

Lower rate

RP&L's rates were lowered July 1 after the Indiana legislature repealed the utility receipts tax.

The rates are about 1.4% lower. Foster said a typical residential customer using 1,000 kilowatt hours per month would save about $24.40 annually.

A notice with that information is included on the front page of RP&L bills being sent for July and August.

Storm damage

Foster also updated the board about the June 13 storm that caused power outages.

RP&L needed to replace 25 poles and an industrial transformer to restore power. Mutual aid was supplied by crews from Lebanon, Washington and Scottsburg and Crawfordsville provided poles when RP&L ran out of 40-foot poles.

Foster explained how all RP&L employees contribute during an outage situation. He thanked all RP&L employees, saying they worked 16-hour days that totaled 783.8 hours of overtime.