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Rate Payers Under Attack

January 24, 2007

By Dave Menzer
Citizens Action Coalition

Action Alert -- Call your Legislators

Ratepayers are under attack this legislative session from a number of directions as Indiana’s regulated electric and gas utilities push several pieces of legislation to weaken regulation and allow for automatic rate increases without the benefit of the normal rate making process.

These efforts also known as trackers allow the utilities to increase rates to pay for everything from new power plants to new transmission effectively giving them a blank check to make investments that may not be needed or may not be in to the benefit of Indiana ratepayers.

Taken together, the following bills could result in major utility rate increases when alternatives such as energy efficiency, demand side management, and renewables such as wind can avoid the huge costs of new power plant construction, new transmission and the additional pollution which has a hidden cost to public health, the environment and global warming.

Please call your legislator as soon as you can and urge them to oppose the following bills.

SB 206 - "No"

SB 206 would take authority away from the Indiana Utility Regulatory Commission (IURC) to protect ratepayers from unreasonable and expensive investments in air emissions (pollution) controls on existing power plants, requiring the IURC to "rubber stamp" any such investments and provide financial incentives at ratepayers' expense. While SB 206 begins to address the problem of greenhouse gasses caused by emissions of carbon dioxide (good thing), it signals a public policy approach that rewards utilities for bad investments and shuts ratepayers out of the critical decision-making process (a very bad thing). Accordingly, please contact your Senators and urge them to vote "No" on SB 206.

Status: SB 206 will be heard on Thursday, January 25, 2007 at 8:30 a.m. in the Senate Utility and Regulatory Affairs Committee Room 233.

SB 410 - "No"

SB 410 provides financial incentives to electric utilities to invest in advanced metering infrastructure. The theory behind advanced metering is that it may help to reduce demand on electric consumption at peak times and conserve overall electric energy usage.

The reality is that investment in advanced metering infrastructure is extremely expensive. Federal law mandates the IURC to investigate whether or not investment in advanced metering is the most prudent and cost-effective way to address energy conservation and demand. The IURC is doing just that, and has initiated an investigation which will conclude this summer. SB 410 short circuit's the IURC’s investigation by assuming that deployment of advanced metering technology is the best investment.

Don’t let the Indiana legislature ignore all of the facts and stick ratepayers with the substantial costs associated with advanced metering infrastructure (AMI). Tell them to vote "NO" on SB 410, and let the IURC complete its investigation into whether AMI is a prudent investment for their constituents.

Status: SB 410 will be heard on Thursday, January 25, 2007 at 8:30 am in the Senate Utilities and Regulatory Affairs Committee Room 233. Committee members listed below.

HB 1722 - "No"

HB 1722 provides for utilities to recover the costs of new coal gasification for gas that is both experimental and risky and is a blatant attempt to legislate a current IURC investigation by mandating that ratepayers cover all of the risk for shareholders and agree to pay for the gas in gas utility rates no matter how costly.

Ratepayers should not be forced to issue another blank check because the utilities are worried about such risky investment.

Tell your Representative to vote no on HB 1722, and let the IURC complete its investigation into the viability and risk involved with such a massive investment.

Staus: HB 1722 will be heard on Thursday, Jan. 25th at 8:30 a.m. in the House Commerce, Energy and Utilities committee, Room 156c in the basement.

House Commerce, Energy and Utilities
Senate Utilities and Regulatory Affairs

Thanks for your help.

Dave Menzer
Utility Campaign Organizer
Citizens Action Coalition of IN
1-317-205-3535 or dmenzer@citact.org

St. Joe Valley Greens, South Bend, IN