AES Indiana wants state regulators to toss out two petitions seeking reconsideration of its rate increase, arguing they rehash arguments already rejected in the case.
The Central Indiana utility said in a July 17 filing that the petitions ignore evidence AES filed during the case and ask the commission to disregard state law and precedent.
“Nothing in this statute suggests that in considering affordability or any other factor, the Commission is free to ignore the record evidence or the law in reaching its decisions,” AES Indiana said in the filing.
The Indiana Utility Regulatory Commission oversees utility rate change cases and is required by state law to balance the interests of ratepayers and utilities while weighing five factors — affordability, reliability, resiliency, stability and environmental sustainability.
The Indiana Office of Utility Consumer Counselor, the state’s consumer watchdog, filed a petition for rehearing or reconsideration on July 7, arguing that the IURC did not fully consider affordability in its 3-1 decision in June.
A consumer advocacy group, Citizens Action Coalition, also filed a petition.
The state watchdog filed its challenge after Gov. Mike Braun denounced the commission’s decision. Braun subsequently appointed a new chairman to the five-member commission and one member resigned. July 22, Braun announced a replacement.
AES Indiana said the petitions repeat previous arguments, ignore evidence the company filed and ask the commission to depart from state law and precedent.
The company also said the evidence it filed in the rate case shows the company has taken steps to address affordability and minimize costs, and explains why the rate increase is necessary.
The OUCC’s petition argued that the rate increase decision unfairly placed the cost of some of the utility company’s expenses on ratepayers, such as major storm costs, vacant payroll positions and the company’s return on equity rate. It also pointed to a large volume of consumer complaints over billing that customers had filed with the state.
Citizens Action Coalition argued new information wasn’t available until after the case’s record closed, including a Google data center project in Monrovia and the announcement of a BlackRock-led investor group acquisition of AES Indiana’s parent company.
AES Indiana’s response rejected the claims for various reasons.
Last fall, the company entered into a settlement with several intervening parties — including Walmart, Rolls-Royce and others — and agreed to lower its rate increase request. In the commission’s June order, it decreased the amount further, leading to an approved operating revenue increase of $71 million.
AES Indiana said in the filing that the settlement and commission’s order show that the IURC accounted for affordability in its decision.
The IURC must address or rule on the petitions within 60 days — Sept. 8 — or they are considered denied, according to state administrative code.
Contact WFYI data journalist Zak Cassel at zcassel@wfyi.org
