I&M Key Case Overview
Indiana Michigan Power (I&M) has filed several major cases before the Indiana Utility Regulatory Commission (IURC).
The Indiana Office of Utility Consumer Counselor (OUCC) represents consumer interests in all cases before the Commission.
Base Rate Case (IURC Cause No. 44075)
I&M was granted permission to increase its annual operating revenues by approximately $85 million in a February 13, 2013 IURC order. In a March 14, 2013 order on reconsideration, the IURC raised the increase to $92 million.
The utility requested an additional $170.1 million in its proposed order, while the OUCC recommended limiting the proposed increase to $30.7 million.
The OUCC has appealed the Commission's order to the Indiana Court of Appeals.
I&M’s previous base rates – which cover operating, maintenance and capital costs – were approved in March 2009.
The IURC held public field hearings in the rate case during the week of April 23 in Fort Wayne, South Bend and Muncie, in addition to evidentiary hearings.
More details are available at www.in.gov/oucc/2667.htm.
Rockport Pollution Controls (IURC Cause No. 44331)
I&M is requesting approval to install new pollution control equipment (for sulfur dioxide and nitrogen oxide) at its Rockport Generating Facility in southwestern Indiana as required by a federal consent decree. The utility also seeks approval to incrementally recover the project’s costs through rates, starting at least 6 months after construction begins.
I&M filed this request in April 2013, including a petition (15 pages) and testimony (672 pages), estimating the project's costs at $284.7 million.
The OUCC is scheduled to file testimony on July 2, 2013.
In a previous case (IURC Cause No. 44033), I&M sought approval for a $1.4 billion project at Rockport. The OUCC filed testimony and exhibits in July 2012 recommending denial of the request. I&M filed a motion to dismiss this case, which was granted on March 14, 2013.
For more information on these cases, visit www.in.gov/oucc/2673.htm.
Cook Nuclear Plant Life Cycle (IURC Cause No. 44182)
I&M filed a new case on April 13, 2012 requesting IURC approval of the Life Cycle Management (LCM) project for its D.C. Cook Nuclear Plant in Bridgman, Michigan. Approximately 65 percent of Cook’s energy is dedicated to Indiana customers.
The company’s September 2011 rate case testimony estimated the cost for this project – which will extend the lifespan of the Cook plant by 20 years – at "less than $2 billion." In its April 13, 2012 petition, I&M estimates the project's direct capital costs at $1.169 billion (not including financing costs).
The OUCC filed testimony and exhibits on August 30, 2012, recommending significant reductions in the utility's requested rate recovery.
To review the OUCC's testimony and get updates on this case, visit www.in.gov/oucc/2710.htm.
Trackers
Separately from base rates, I&M bills currently include cost recovery through several periodic rate adjustment mechanisms, also known as "trackers." I&M tracks costs for:
- Coal, nuclear and other fuel costs.
- I&M’s most recent fuel adjustment clause (FAC) order, approved in March 2013, will increase a typical residential bill by $1.73.
- The utility's previous FAC order, approved in September 2012, decreased a typical residential bill by $0.87.
- Clean coal technology/environmental compliance costs.
- I&M’s current environmental compliance rider (ECR), approved in April 2013, will increase an average monthly residential bill by $0.04.
- The utility's September 2012 ECR adjustment decreased such a bill by $0.12.
- Demand side management/energy efficiency efforts.
- The most recent tracker approved in December 2012 will increase a typical residential bill by $0.77.
- I&M's first annual tracking request for energy efficiency programs decreased a typical residential bill by $0.58.
- Power sales to the wholesale market.
- I&M’s current off-system sales (OSS) tracker, approved in December 2012, will decrease an average residential bill by $0.71.
- The OSS tracker approved in 2011 decreased the average customer’s bill by $0.97.
- Regional transmission costs.
- I&M’s most recent tracker for PJM Interconnection costs, approved in December 2012, will raise the average customer’s monthly bill by $1.76.
- The utility's PJM tracker approved in 2011 increased the average residential bill by $1.90.
All examples are for a residential customer using 1,000 kWh per month.
I&M’s FAC and ECR trackers are adjusted every 6 months following OUCC review and IURC approval. The other trackers are adjusted annually.
All 5 of Indiana’s large, investor-owned electric utilities use trackers to varying degrees.
Make Your Voice Heard
The OUCC invites written consumer comments in all IURC cases. The simplest way to submit written comments is through the agency's electronic contact form or by visiting the OUCC Website at www.IN.gov/OUCC and clicking the "Comment on a Pending Case" link in the page’s upper right corner.
Consumers can also send case comments to the OUCC by mail or by fax.
5-6-13
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