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Electric utilities

Utility Companies in Indiana Seek Regulatory Relief Amid COVID-19 Crisis

Strategic Insights

— 2 min read

The Indiana Utility Regulatory Commission is considering a joint petition from 11 utility companies to defer certain expenses and revenue reductions attributed to the COVID-19 pandemic. In a consolidated cause of action, the companies are requesting permission to establish repayment programs for past-due customer accounts, approve new bad debt trackers, and address the future recovery of the COVID-19 regulatory asset. Additionally, the Indiana Office of Utility Consumer Counselor is requesting a generic investigation into the COVID-19 impacts, divided into two phases, with emergency relief to alleviate Indiana ratepayers from the threat of utility service disconnection and payment arrearages during the global health and economic crisis.

Key Takeaways:

  • The joint petition of 11 utility companies seeks to defer expenses and revenue reductions attributed to the COVID-19 pandemic, totaling a regulatory asset.
  • The petitioners include Duke Energy Indiana, LLC, Indiana Gas Company, and Southern Indiana Gas & Electric Company, among others.
  • The companies are requesting permission to establish repayment programs for past-due customer accounts, approve new bad debt trackers, and address the future recovery of the COVID-19 regulatory asset.
  • The Indiana Office of Utility Consumer Counselor is conducting a generic investigation into the COVID-19 impacts, divided into two phases, with emergency relief to alleviate Indiana ratepayers from the threat of utility service disconnection and payment arrearages.
  • Duke Energy Indiana is providing additional data on disconnections, including the number of Disconnect Notice Bills, Accounts Disconnected, Accounts Reconnected, Late Fees Assessed, Security Deposit Fees Collected, and Reconnect Fees Assessed.
  • The company is offering 6-month payment arrangements for all residential customers through June 30, 2021, and flexibility in payment arrangement restructuring for customers who make their regular monthly payments.
  • Duke Energy Indiana is leveraging expected federal funding to ensure that customers have the opportunity to take advantage of all options available.

Statistics:

  • 11 utility companies have jointly petitioned the Indiana Utility Regulatory Commission to defer expenses and revenue reductions attributed to the COVID-19 pandemic.
  • The companies have reported a total of 2.5 million residential customers and 220,000 non-residential customers.
  • The number of accounts certified as eligible for energy assistance since October 1, 2019, is 143,440.
  • The number of accounts past due by customer class broken down by 30 days, 60 days, 90 days, and 120+ days past due is as follows:

+ Residential: 15,612, 5,256, 1,506, 390

+ Non-residential: 2,353, 985, 344, 128

  • The accounts receivable balances showing total, current, 30-day, 60-day, and 90-day by customer class are as follows:

+ Residential: $1.3 billion, $1.1 billion, $223 million, $71 million, $28 million

+ Non-residential: $222 million, $186 million, $34 million, $14 million, $6 million

Sources:

  • Indiana Utility Regulatory Commission, "STATE OF INDIANA INDIANA UTILITY REGULATORY COMMISSION VERIFIED JOINT PETITION OF DUKE ENERGY INDIANA, LLC, INDIANA GAS COMPANY D/B/A VECTREN ENERGY DELIVERY OF INDIANA, INC., INDIANA MICHIGAN POWER COMPANY, INDIANA NATURAL GAS CORPORATION, INDIANAPOLIS POWER & LIGHT COMPANY, MIDWEST NATURAL GAS CORPORATION, NORTHERN INDIANA PUBLIC SERVICE COMPANY, LLC, OHIO VALLEY GAS CORP. AND OHIO VALLEY GAS, INC., SOUTHERN INDIANA GAS & ELECTRIC COMPANY D/B/A VECTREN ENERGY DELIVERY OF INDIANA, INC., AND SYCAMORE GAS COMPANY FOR (1) AUTHORITY FOR ALL JOINT PETITIONERS TO DEFER AS A REGULATORY ASSET CERTAIN INCREMENTAL EXPENSE INCREASES AND REVENUE REDUCTIONS OF THE UTILITY ATTRIBUTABLE TO COVID-19; AND (2) THE ESTABLISHMENT OF SUBDOCKETS FOR EACH JOINT PETITIONER IN WHICH EACH JOINT PETITIONER MAY ADDRESS REPAYMENT PROGRAMS FOR PAST DUE CUSTOMER ACCOUNTS, APPROVAL OF NEW BAD DEBT TRACKERS, AND/OR DETAILS CONCERNING THE FUTURE RECOVERY OF THE COVID-19 REGULATORY ASSET ) ) ) ) ) ) ) ) ) ) ) CAUSE NO. 45377 ) (Consolidated under ) Cause No. 45380)
  • Duke Energy Indiana, LLC, "APRIL 2021 MONTHLY REPORTING REQUIREMENTS PURSUANT TO THE COMMISSION'S PREVIOUS ORDERS 2 In accordance with the Indiana Utility Regulatory Commission's ("Commission") May 27, 2020 Order in the above-referenced consolidated cause of action, Duke Energy Indiana, LLC ("Duke Energy Indiana") hereto provides the Commission with the following monthly reporting requirements requested by the Commission:"

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