- Utilizing long-term debt to fund one third of the costs of distribution system extensions and replacements instead of relying on three-fourths of the costs to be absorbed through higher rates.
- Reducing line items for the water utility's operating costs, including property taxes, chemical costs, purchased water costs and one-time, non-recurring expenses.
- Reducing the utility's depreciation costs and executive and employee incentive programs.
- Further reductions in the utility's revenue requirements due to interest income, payments from other utilities for notes receivable, and funds from a nationwide, class action settlement regarding atrazine contamination.
Thursday, June 20, 2013
Utility Consumer Counselor's Office Seeks Significant Reduction In Citizen Energy's Proposed Water Rate Increase
Citizens Energy is seeking a whopping 15% increase in water rates, or more than $25 million in operating revenues annually, following a string of double-digit rate increases in recent years. The Indiana Office of Utility Consumer Counselor thinks that's too high. It's urging the IURC to approve a rate increase one-fifth that size, or $4.6 million. The OUCC has several recommendations to reduce the size of the rate increase, including: