Gas and electric companies in Indiana want to charge their customers for any debt incurred in relation to the executive order banning disconnections for nonpayment through June 4.
The companies, including Indianapolis Power & Light Co. and Duke Energy Inc., filed a request on Friday, asking the Indiana Utility Regulatory Commission (IURC) for permission to recover the lost revenue, saying in a petition that the coronavirus pandemic is causing “substantial adverse financial impact” on their businesses.
The other utility companies that signed the petition are Michigan Power Co., Northern Indiana Public Service Co, Vectren, Gas Co., Indiana Natural Gas Corp., Midwest Natural Gas Corp., Ohio Valley Gas Corp., Ohio Valley Gas, Southern Indiana Gas & Electric Co. and Sycamore Gas Co.
They said that businesses may not be able to reopen and that production, supply chains and markets have been disrupted.
However, they did not divulge any figures for their loss in revenue or a proposed increase in customers’ bills. According to the Indiana Business Journal (IBJ), the petition stated: “Many businesses have had to make difficult decisions to reduce and, in some cases, suspend their operations, which in turn has created significant financial challenges for residential customers.
“It is unknown at this time how long the event will last, whether it will recur, or how significant the impact will be on Indiana customers and the utilities that provide them with essential services.”
But consumer group Citizens Action Coalition of Indiana has responded, calling the petition “unprecedented utility greed.” Kerwin Olson, the organization’s executive director, said: “It is disgusting that during these unprecedented times, they are more concerned with quarterly stock reports than with the health, safety, and well-being of the Hoosier communities and consumers which they serve.”
Olson claimed that the utility companies are trying to categorize lower energy sales as an expense caused by the pandemic and charge customers for energy they did not sell.
However, the Indiana Energy Association (IEA), a trade group that represents utilities, said in an email, according to IBJ: “There is no immediate impact on customers from this step.
“The costs and revenue impacts would have to be reviewed and approved by state utility regulators in the context of a detailed, deliberative proceeding such as a company’s future rate case.”
According to the IEA, there are at least 29 other states that have approved similar regulations to what the Indiana utility companies are seeking.
If the IURC allows the utility companies to charge customers, they will have to plan how to recover their losses, which could include charging overtime. On Monday, the IURC said it is asking Indiana to investigate how companies handle the pandemic’s impact and wanted the state to extend the suspension of utility disconnections, as well as waiving all deposits and fees.
Indiana Utility Consumer Counselor Bill Fine said: “This extraordinary and unprecedented situation calls for new protections to ensure that all Hoosiers have access to essential services, especially consumers who are suffering loss of income through no fault of their own.”
