- $1.4 million for reduction in excessive executive pay paid to 16 executives;
- $1.6 million attributed to a projected drop in water consumption;
- $1.2 million for nonrecurring charges because Citizens had used 2 years' data from years when Veolia still operated the water utility; and
- $2 million savings from capital expenditures that would have been allowed for current and 2015 infrastructure investments.
Wednesday, March 19, 2014
IURC Slaps Citizens Energy On The Wrist And Then Okays 9% Water Rate Increase
Citizens Energy initially asked for a 14.7% increase in Indianapolis water rates, or a hike of $25.3 million in operating revenues. During the hearing of its rate increase, the nonprofit utility lowered its rate increase request to 13.26%, or $23 million in annual operating revenues. The IURC today approved a 9% increase that will generate about $15.7 million in annual operating revenues. That's a lot higher than the 2.6% rate increase the Indiana Office of Utility Consumer Counselor contended that the rate increase evidence justified. So we wouldn't feel too bad about the decision, the IURC put out a press release to scold Citizens Energy for paying excessive salaries to its top executives and tells us it's going to investigate the utility's billing and customer service practices. Here are the numbers the press related provided to explain the IURC's reduction from 13.26% to 9% rate increase: