IBJNews

Citizens' CEO grilled on pay in rate-increase hearing

Back to TopCommentsE-mailPrintBookmark and Share

State utility regulators kicked off a week-long hearing Monday on a proposed water rate increase for Indianapolis residents by putting the CEO of Citizens Energy Group on the hot seat.

CEO Carey Lykins—under scrutiny for a significant boost in compensation last year—was the first witness called Monday morning by the Indiana Utility Regulatory Commission.

Lykins tried to make a case for a 14.7-percent increase in water rates for 300,000 Citizens customers in Marion and surrounding counties. He also had to explain his nearly $3 million in compensation last fiscal year, as well as the pay and bonuses other top executives received.

Citizens filed a request with the IURC in February to increase its annual operating revenue from water rates 14.7 percent, or $25.3 million. The hike would raise the average residential customer’s water bill from $31 to $34 per month.

Lykins told commissioners the utility needs to boost its revenue because it previously has relied too heavily on debt to pay for capital projects.

“It’s not a healthy or sustainable system,” he said.

Recent pay bumps for Citizens' top brass have drawn additional scrutiny of the utility’s need to increase costs for consumers.

Last December, IBJ reported that  Lykins earned $2.84 million in salary, bonus and incentive pay for the year ended September 2012—compared to $1.5 million in 2011.

IURC Chairman Jim Atterholt pressed the issue Monday after Lykins said his and his executives’ pay was in line with market rates based on data from consultating firm Mercer.

Atterholt noted that the Mercer study made comparisons to much larger energy companies. Comparing Citizens, which has 1,200 employees, to those firms would be akin to 1,700-employee ExactTarget paying its leaders like 430,000-employee IBM does, he said.

Lykins criticized Indianapolis media for how it has reported on his pay.

“It seems to me that there have been some sensational sound bites, let me say, around my compensation and others,” he said.

The IURC’s evidentiary hearing on the rate increase is scheduled to run through Friday.
 

ADVERTISEMENT

  • sensational soundbite
    What about his nearly 100% salary increase is not sensation? When we find ourselves paying private corporate rates for public good projects that are privately managed, we are doomed. If Lykins will not accept 1M as salary and no more, find someone to replace him. He clearly thinks to highly of himself and not very highly of his public obligation. Keep the sensational soundbites coming.
  • not following through on what Ballard said
    The paragraph below is copy/pasted from the April 10, 2010 article titled "City Approval of Citizens Energy Deal Could Come in May" Critics have questioned whether proposals from other firms might have raised more upfront cash for the city. Ballard contends Citizens, as a public trust, ensures a stable future for the utilities and should keep downward pressure on rates because of merger synergies Just sayin
  • Marine57
    That $3,000,000 bonus for the CEO cost the 300,000 citizens $10 each last year...
  • Commission Talks But No Action
    When will the utility commission members do their job? Without a forced rollback in the salaries of this monopoly the hearing is just a formality to absorb some of the heat from irate customers like myself.
  • Water
    Salary hikes vs water rates increase. Big brother understands the difference but will concede to water increases. These hearings are a formality but do expose vital evidence that once again Citizens can make water increases grow into salary increases.
  • Politics as Usual
    From the first day I read about Citizens, the nonprofit, taking over and using the funds to repair infrastructure, not raising rates, etc., I knew all this was coming. It never made any sense. Can we get the former water company back?
  • Absurdly Overpaid
    I cannot understand why anyone would be so absurdly overpaid. Keep investigating these guys. They are stealing from us all.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Now if he'd just stay there...

  2. Daniel - what about the many US citizens who do NOT follow what the Bible teaches? The Hindus, Jews, Muslims and others who are all American citizens entitled to all rights as Americans?? This issue has NOTHING to do with "What the Bible says..." Keep all Churches separate from State! Pence's ongoing idiocy continues to make Indiana look like a backwards, homophobic state in the eyes of our nation. Can't we move on to bigger issues - like educating our kids?

  3. 1. IBJ should link to the referenced report. We are in the age of electronic media...not sharing information is lazy. Here is a link http://www.in.gov/gov/files/Blue_Ribbon_Panel_Report_July_9_2014.pdf 2. The article should provide more clarity about the make-up of this panel. The commenters are making this item out to be partisan, it does not appear the panel is partisan. Here is a list of the panel which appears to be balanced with different SME to add different perspectives http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=138116?formation_id=189603 3. It suggests a by-pass, I do not see where this report suggests another "loop". 4. Henry, based on your kneejerk reaction, we would be better off if you moved to another state unless your post was meant as sarcasm in which case I say Well Done. 5. The article and report actually indicates need to improve rail and port infrastructure in direct contradiction to Shayla commentary. Specifically, recommendation is to consider passenger rail projects... 6. People have a voice with their elected officials. These are suggestions and do not represent "crony capitalism", etc. The report needs to be analyzed and the legislature can decide on priorities and spending. Don't like it, then vote in a new legislature but quit artificially creating issues where there are none! People need to sift through the politics and provide constructive criticism to the process rather than making uninformed comments in a public forum based on misinformation. IBJ should work harder to correct the record in these forums when blatant errors or misrepresentations are made.

  4. Joe ... Marriage is defined in the Bible ... it is mentioned in the Bible often. Marriage is not mentioned once in the US or Indiana Constitution ...

  5. Daniel - Educate me please: what does the Bible have to do with laws? If the government wasn't in the business of marriage to begin with, then it wouldn't have to "define" marriage at all. Marriage could be left as a personal, religious, or otherwise unregulated action, with no ties to taxes, legal status, etc. Then people could marry whomever they want, and all this silliness would go away. Remember to vote Libertarian in November.

ADVERTISEMENT