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Electric utilities

Utility Companies Seek Regulatory Relief Amid COVID-19 Crisis

Strategic Insights

— 2 min read

Utilities across Indiana are facing significant financial strains due to the ongoing COVID-19 pandemic. A joint petition filed by nine major utility companies, including Duke Energy Indiana and Indiana Gas Company, has requested regulatory relief to defer certain expenses and revenue losses attributed to the pandemic. Additionally, the Indiana Office of Utility Consumer Counselor has proposed a generic investigation into the COVID-19 impacts on utility customers, with a focus on emergency relief for Indiana ratepayers.

Key Takeaways:

  • A joint petition filed by nine utility companies seeks to defer certain expenses and revenue losses attributed to the COVID-19 pandemic.
  • The petition requests authority to establish subdockets for each company to address repayment programs for past due customer accounts, approval of new bad debt trackers, and details concerning the future recovery of the COVID-19 regulatory asset.
  • The Indiana Office of Utility Consumer Counselor has proposed a generic investigation into the COVID-19 impacts on utility customers, with a focus on emergency relief for Indiana ratepayers.
  • Morgan County Rural Water Corporation has set up 11 active payment arrangements for customers with balances that would otherwise be past due and eligible for disconnection.
  • Payment arrangements prevent late fees, delinquency fees, and disconnection for non-payment, as long as payment is made as agreed.
  • Morgan County has provided a Payment Arrangements Update Report for July 2021, detailing the active payment arrangements and preventing utility service disconnection.

Statistics:

  • 9 utility companies have jointly petitioned for regulatory relief due to COVID-19-related expenses and revenue losses.
  • As of July 30, 2021, Morgan County Rural Water Corporation has 11 active payment arrangements set up for customers with balances that would otherwise be past due and eligible for disconnection.
  • Indiana ratepayers face potential utility service disconnection and payment arrearages during the global health and economic crisis.

Sources:

  • 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.
  • Petition for Generic Investigation into COVID-19 Impacts to be Conducted over Two Phases.
  • CAUSE NO. 45377 (Consolidated under Cause No. 45380).
  • Morgan County Rural Water Corporation's Payment Arrangements Update Report for July 2021.

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