The Herald Bulletin

Morning Update

Local Business

June 17, 2014

Council approves electric rate hike

Some customers will see decrease

ANDERSON — Some customers with Anderson Municipal Light & Power will see a higher rate for electricity while others will see a decrease following action by the City Council.

The council on Tuesday OK'd a new rate schedule and charges as approved earlier this year by the Indiana Utility Regulatory Commission (IURC). The council adopted the ordinance by a vote of 6-to-0. Councilman Ollie H. Dixon, Rodney Chamberlain and Pam Jones were not in attendance.

The council approved through two readings the ordinance last Thursday, but a motion to suspend the rules to allow for final adoption was defeated.

The increase approved by the IURC and now the City Council is less than city officials projected in 2013. The city modified the rate increase several times at the request of the IURC, eventually determining approximately $250,000 less in revenue was required.

Several utility customers renewed concerns raised by the Indiana State Board of Accounts audit for 2013 that was critical of the use of utility funds to cover operating costs of city government.

Accountant John Skomp of Crowe Horwath said that once the issue of utility funds being used to pay government expenses is resolved, the city has to submit a filing with the IURC outlining the changes.

Kyle Hupfer, a consultant for the city, said last week the first rate increase sought through the Indiana Utility Regulatory Commission was based on 2011 and showed a revenue increase of 2.69 percent.

He said the IURC wanted the test year to be 2012, which resulted in a 3 percent reduction in revenues.

“Anderson has maintained electric rates at the current level since 2008,” Hupfer said.

Hupfer said until the new rates were approved the utility would be overcollecting from customers because of the new lower rates.

As part of the IURC decision the city was equalizing the revenues collected from the various categories of customers. Hupfer said the change would equalize the revenues collected from residential customers.

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