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IPL Regulatory Rate Review

The Regulatory Rate Review: What Is It and Why Now?

At IPL, a powerful future is here. We understand our responsibility to find a balanced and efficient energy mix while fulfilling our mission of improving lives by providing safe, reliable and sustainable energy solutions. To achieve this, it’s necessary for IPL to request a regulatory rate review from the Indiana Utility Regulatory Commission (IURC) to raise our rates, which will primarily cover the cost of our new Eagle Valley natural gas plant, among other infrastructure improvements. IPL still remains a low-cost utility, maintaining one of the lowest residential rates among investor-owned utilities in Indiana.

The impact on individual customer bills is determined by their usage. For example, a typical residential customer who uses 1,000 kWh per month will see an increase of a little less than $14 per month on their bills.

Customers are encouraged to use IPL’s energy efficiency programs to help manage energy use. IPL’s Budget Billing is also a useful tool, which enables customers to even out their payments over 11 months and settle up on the 12th month.

New rates are expected to become effective by the end of 2018.

Residential & Small Business Rate Calculator How could a rate change affect your bill?

Enter the number of kilowatt-hours (kWh) usage from your most recent bill in the field below to estimate your monthly increase. (A kilowatt-hour is the unit of measurement for the amount of electricity used in a household. One kilowatt-hour is comparable to ten hours of TV-watching, or vacuuming for one hour.)

1

What is your residential rate code?

Where do I find it?

Whether you receive a paper bill or pay online, your rate code is listed as a line item on your bill under the section called “Metered Electric and Other Services.” It appears under the label “Rate.” Common rate codes are 2- or 3- letter abbreviations, for example “RS.”

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A message to all residential customers with rate codes other than RS, RC or RH as well as all non-residential customers:

You will experience a rate change specific to your current rates, and therefore this rate calculator cannot accurately predict your rate change.

2

What is your monthly kWh usage?

Where do I find kWh usage?

Whether you receive a paper bill or pay online, your monthly kilowatt-hours (kWh) usage is listed as a line item on your bill under the section called “Meter Reading Detail.” It is most commonly a 3- or 4-digit number (example: 1232) and it appears under the label, “Usage.” Use your most recent bill to get the most accurate increase estimate.

Calculate

3

YOUR ESTIMATED BILL INCREASE*

Monthly Increase

$

Daily Increase

$

* Your estimated monthly increase total is only an estimate; the Indiana Utility Regulatory Commission is in the process of reviewing the rate increase request and the final increase amount has not been determined. This estimate includes the “kWh Usage” figure only; taxes are excluded.

IPL small business customers should call the Business Call Center at 317.261.8444 for information on their specific rate increase. Large industrial customers should contact their IPL Account Manager.

FAQs: Top Questions About the Regulatory Rate Review

We want you to have information about possible impacts to your bill. Please read through the most frequently asked questions concerning the regulatory rate review request:

Why is this rate review needed?

We have a responsibility to find the balance between the need for environmentally friendly energy and the need for cost-effective solutions for our customers. With this in mind, IPL’s regulatory rate review request primarily covers the cost of the new Eagle Valley natural gas plant in Martinsville, Indiana, as well as other infrastructure improvements, which will serve our 490,000 customers. IPL’s new natural gas plant will provide a more balanced generation mix and generate electricity more efficiently and at a lower rate of environmental emissions so customers can breathe cleaner air. The natural gas plant will reduce sulfur dioxide (SO2), nitrogen oxide (NOx) and particulate matter emissions by more than 98 percent. Virtually, all mercury, lead and fluoride emissions will be eliminated, and water use will be reduced by 97 percent.

How much more will I pay?

While the impact on individual customer bills is determined by usage, a typical residential customer who uses 1,000 kWh per month could see an increase of a little less than $14 per month if our request is approved by the IURC.

When will my bill increase?

If approved, new rates are expected to become effective by the end of 2018.

What does this rate review request cover?

This regulatory rate review request will primarily cover the cost of the new Eagle Valley natural gas plant located in Martinsville, Indiana, among other infrastructure improvements. The new plant will generate about 670 megawatts of electricity more efficiently and with a lower rate of environmental emissions than the units it’s replacing.

Investments IPL makes for advertising and corporate sponsorships are paid for by shareholders and are not included in IPL’s regulatory rate review request.

Is the IPL Advancion® Battery Storage Array part of your requested rate increase?

Yes. The IPL Advancion Battery Storage Array is one of several projects that will be included in this request. The array is in full commercial operation and is providing primary frequency response to the regional electric grid on a 24/7 basis. With existing infrastructure, advanced technologies like battery energy storage solutions (BESS) will benefit IPL’s customers with safe and reliable service and a more resilient grid.

Now that IPL has filed for a regulatory rate review, what happens next?

IPL’s rates are set by the IURC. Now that IPL has filed a petition with the IURC, the following events will take place:

  • A prehearing conference to establish the filing and hearing dates
  • Filings of testimony from both IPL and any interveners
  • A field hearing so the general public can weigh in on the petition
  • An order by the IURC within 300 days of the filing of the petition
What help is there for low or fixed income customers?

Minimizing the impact on customers’ bills is a priority for IPL, which is why we offer a number of resources to help customers manage their bills including:

  • Budget Billing allows customers to pay the same amount for 11 months and then settle the difference on the 12th month.
  • Payment Extensions can be requested online at IPLpower.com or by calling our automated system at 317.261.8222 and selecting option 2 from the main menu.
  • Preferred Bill Date is offered for IPL customers who want a due date that best matches their paydays. This is especially useful for fixed income customers.
  • Financial Assistance is available by calling the Connect2Help line at 2-1-1.

IPL also contributes to the United Way’s Winter Assistance Fund. This program provides direct financial assistance to our customers who are having the greatest difficulty paying their bills.

What programs are available to help manage my household's energy use?

We have a long history of offering and delivering cost-effective energy efficiency programs for our customers. IPL’s energy efficiency programs are designed to make it easier to manage your energy use and electric bill. Some of the programs available to residential customers include:

  • IPL PowerView provides detailed, personalized information and allows you to see how your energy usage compares to other similar households.
  • CoolCents® provides up to $20 off your bill allowing IPL the ability to briefly and moderately reduce your air conditioner’s cycle time during peak electricity usage periods May through September by installing a device on your A/C unit.
  • Ditch Your Fridge helps you save money on your energy bill by letting IPL pick up and recycle your old (working) fridge or freeze for FREE — you’ll even get a $50 check.
  • Lighting Instant Rebates are an easy way to lower your energy bills. Receive instant rebates at local retail locations on energy-efficient ENERGY STAR® LED lighting options.

For more information on how to manage your household’s energy usage, visit IPLpower.com.

How will this proposed increase affect small business customers on rates for SS (Secondary Service – Small) and SH (Secondary Service – Electric Space Conditioning, Separately Metered)?

The actual impact on individual customer rates will be determined once IPL reviews the order and develops a new set of rate schedules. IPL offers a wide variety of energy efficiency programs for business customers to help manage their electric bills. For more information on ways to manage and reduce your usage, visit IPLpower.com.

For additional information on the rate increase request, call the IPL Business Call Center at 317.261.8444 or email us at BusinessCustomerServices@AES.com.

How will this proposed increase affect large commercial and industrial customers on rates for SL (Secondary Service – Large), PL (Primary Service – Large), PH (Process Heating) and HL (High Load Factor)?

The proposed rate increase will vary among business customers depending on rate class and usage. Large commercial and industrial customers with more complex rate structures who have questions should contact their IPL account manager by sending an email to IPL.StrategicCustomerAccts@AES.com for details about their rate impact. Please include your contact information for a response.

Streetlight and Security Light FAQs

Are there changes for street and security lighting customers?

Yes, IPL is proposing to add several light-emitting diode (LED) options to its tariff. Other than that, the company is proposing to continue lighting service offerings, which include a set of rates for “vintage” lights and a different set of rates that would apply to new lights. The new rates are now higher to reflect the increased cost of the lighting equipment, including its installation.

Why does IPL have "vintage" and new streetlight rates?

The new rates are generally higher priced than the vintage rates to reflect the increased cost of the lighting equipment, including its installation. Street and security lights existing before March 31, 2016 will remain on the vintage rates, while a newly activated street or security light will be placed on the new rates.

What light-emitting diode (LED) lighting options does IPL provide?

In addition to the decorative post lights that IPL has offered in the past, we are now offering LED streetlights and other light options.

Progress Toward a More Balanced Generation Mix

IPL Generation Resources

  • Coal
  • Natural Gas
  • Oil
  • Wind and Solar
2007 2017

IPL's Ways to Save

We have multiple programs geared toward making it easier to save on your electric bill. Valuable rebates and easy usage monitoring are just the beginning. Click through the options below to see which will be most beneficial to you. For information on more ways to save, visit IPLpower.com

PowerView® for Households(Requires an online account with IPL)

See how your energy usage compares to other, similar households.

View Your Energy Usage

CoolCents® Program

Participate from May through September and receive up to a $20 credit on your bill.

Enroll in CoolCents

Ditch Your Fridge

Receive a $50 rebate when you replace your old fridge or freezer and have IPL haul it away.

Get Your Rebate

Lighting Instant Rebates

An easy way to lower your energy bills. Receive instant rebates at local retail locations on energy-efficient ENERGY STAR® LED lighting options.

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