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Citizens Energy reports $81M loss, lower executive pay

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Citizens Energy Group lost $81.3 million in fiscal 2013, and its CEO’s pay dropped by $1 million from the previous year, when his bonus-fueled compensation provoked questions from regulators.
 
The loss far exceeded the $11.8 million in red ink Citizens recorded in fiscal 2012.

Operating revenue rose 15 percent, to $711.5 million, in fiscal 2013, which ended Sept. 30.
 
Meanwhile, CEO Carey Lykins earned about $1.9 million in salary and bonuses during the year, according to documents the company provided Thursday.
 
Lykins' pay dropped from $2.9 million the previous year, when he received a biannual incentive boost to his compensation. Last year, Citizens, a not-for-profit charitable trust, also bought Indianapolis’ water and sewage utilities, boosting the size of the organization and Lykins’ pay. He was paid $1.55 million in fiscal 2011.
 
Collectively, Lykins and the six senior vice presidents saw their compensation drop 26.5 percent in 2013, to a total of $5.9 million.
 
Citizens’ compensation for its upper brass brought the utility scrutiny from the Indiana Utility Regulatory Commission earlier this year as the state agency reviewed applications for water and wastewater rate hikes.
 
Those hikes, if approved, would cauterize losses—$8.7 million in the water division and $28.5 million in wastewater—that Citizens had in fiscal 2013 because of aging facilities, said Citizens spokesman Dan Considine.
 
The rates, set by the city-county council before the acquisition in 2011, aren’t high enough to keep up with the declining facilities and depreciation, he said.
 
Water rates would increase 13.3 percent, and wastewater rates would jump 21.6 percent initially and 5.6 percent later on, based on figures filed with the Indiana Utility Regulatory Commission.
 
Almost half of Citizens’ $81.3 million loss was attributable to ProLiance Energy, a natural gas marketer it owned a 39-percent stake in until last June.
 
Citizens and Vectren Corp., which owned the other 61 percent, sold the money-losing ProLiance to Dallas-based Energy Transfer Partners.
 
Citizens reported $39 million in losses associated with ProLiance.
 
Fueling the losses was the $11.5 million Citizens paid for for the demolition and remediation of a coke plant property it closed in 2007.

 

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  • Intentional Overcharging ???
    I was grossly overcharged for a meter read on my gas last fall (had to transfer money from brokerage account to pay my bill). Citizens indicated that it was an actual meter read which later turned out to be incorrect (I'd already figured that out) but I had to pay the bill to protect my service and credit. Eventually they adjusted but not until I'd pushed for the meter to be re-read. Not so strangely I just had the same thing happen with my water bill. It almost seems like these reDing errors are intentional efforts to float cash, many people don't even catch these errors....
  • Board of Directors pay?
    I seem to remember that the Board of Directors receives an enormous increase in their pay? They justified it because of the significant amount of extra work they experienced with recent increases in their responsibilities. Since all members of the Board also have other full time jobs, I wonder how they fit in the extra time. Did they short change their full time employers because they had to increase the work load for the Board position? Anyway, does anyone know if Board members also took a financial hit? I hope so...and I hope the hit was big.
  • Budget plan???
    I have been on the budget plan for the past few year. This year they had overcharged so much I have gone for 5 months with "no charge " and they haven't yet re-instituted the charges - seems odd, as it is December.
    • IURC Short Memory
      The Indiana utility regulatory commission is a joke. Citizens Energy buys the Indianapolis Water Company with high amounts of debt promising huge cost savings in operations, then turns around and buys another utility in Westfield and rewards executive with drastic compensation increases with NO proven cost savings, and now wants to increase our utility rates to cover their incompence of unsustainable debt and increased operating expenses.
    • Water rate rip off!
      Along with all the other issues caused by the acquisition of the former Indianapolis Water Company, we in Boone County are paying higher water rates to subsidize the ailing and outdated system the Mr. Morris and his former cronies left to us!
    • Crappy Citizens Energy Water Service
      Those bastards have destroyed my toilet seals, ice maker 2 times, Water Heater and Water Softener by running Water Pressure up over 110PSI into my home! This also makes the consumer's consumption go up by more than 30%. All about revenue!!!!! Just think about running your shower for 5 minutes unnecessarily using 30% more water. The higher pressure also ruins all your appliances as stated above. I put a PRV (Presure Relief Valve) on my home to maximize incoming pressure at 65PSI. My understanding it is a Federal Law the utility has to place for free the PRV on a consumers home if the PSI EXCEEDS 80. My home is less than 5 years old. Anyone else have thes problems or know of the federal rule?
    • The Banana Republic-City of Indianapolis favored Crony Business Network
      I am pretty sure Citizens has not read my gas meter since Feb 2012. Yet every month the meter reading says "actual" with a $12 delivery charge plus taxesand NO charge for gas. I am waiting for them to finally acurately read it and explain to me the GROSS MANAGERIAL INCOMPETENCE FROM LYKINS OFFICE ALL THE WAY DOWN TO HIS CRONIES! I am going to take my invoices which say ACTUAL READING on each and every one of them into court. How many other customers like this ? Unreliable & incompetent billing practices. Maybe if they fixed basic blocking and tackling billing processes any small business could do for cheaper and fire their current EXEC's and STOP OVERPAYING EXEC's (smells like Bell, CA City Govt) the loss would not exist. Come on IBJ dig deeper into the billing system!!!!!!!! Also they didn't take pay cuts as they greedily paid more money than they should of in 2012 from the Charitable Public Trust to their own inurement. None of those execs are worth what they paid in 2012 or 2013.

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