The monthly rate increases, if granted by state regulators, would likely be about $1.50 for the typical household customer in the first year. That monthly amount would increase by an additional $1.50 each year, or by about $10.50 over the seven years.
Vincent Parisi will become the fourth leader of IPL since 2015, managing a utility that serves about 500,000 customers in central Indiana.
Rafael Sanchez, who left his job as president and CEO of Indianapolis Power & Light Co. this year as part of a corporate restructuring, has been hired by another of Indiana’s corporate heavyweights.
Indianapolis Power & Light has agreed not to raise the fixed monthly rate it charges most of its residential customers, under a rate-case settlement it reached with the Indiana Office of Utility Consumer Counselor and other stakeholders.
In a sharp rebuke, the Indiana Office of Utility Consumer Counselor said IPL’s $96.7 million rate increase is unjustified. It is recommending a much smaller increase.
Democrat Jared Evans said the council members are hoping to “raise awareness” about the issue and persuade state regulators to drastically reduce the amount IPL raises its rates, “if they don’t decline this altogether.”
About 27,000 city-funded streetlights will be updated with the more energy-efficient, light-emitting diodes through spring 2021.
The utility is asking state regulators for permission to increase the “fixed charge” on its 490,000 customers from $17 to $27 a month, and increase energy-usage charges also.
The shakeup means that Rafael Sanchez, who has led the Indianapolis operations since June 2016, is out and will be replaced by a company official who will lead both Indiana and Ohio operations.
If state regulators approve the request from Indianapolis Power & Light Co., customers would see their rates rise by the end of 2018.
The city said it will use the savings from the more energy-efficient lights to add another 4,000 streetlamps.
Bradley and Montgomery has renovated the second floor of the Indianapolis Power & Light Co. building, adding modern touches while keeping some organic elements.
The utility says the increase, which would go into effect by the end of 2017, would be used to build one of the “cleanest, most efficient natural gas plants ever to be built in Indiana.”
Indianapolis plans to install another 25 streetlights by the end of the year, continuing Mayor Joe Hogsett’s push to light up neighborhoods with higher accident and crime rates.