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HomeMy WebLinkAbout11-03-2011 City intervenes in I&M base rate case 45oU CH B O FAQ a; iF 2 U d L4 a..; le . a2 1865 Office of the Mayor NEWS RELEASE November 3,2011 10:00 am City intervenes in I&M base rate case Mayor seeks to retain competitive edge for business growth Contact: Mikki Dobski, Director of Communications&Special Projects, 235-5855 or 876-1564, Chuck Leone, City Attorney, 235-9241, or Attorney Shaw R. Friedman, 219-326-1264 Mayor Stephen J. Luecke announced today that the City of South Bend has intervened in the pending I&M electric base rate to retain a competitive edge for the greater South Bend area when it comes to business growth and economic development. The Mayor said the City has "successfully marketed I&M's comparatively low electric rates to help sell this area to prospective business, and we don't want to see our economic development efforts hurt by a big increase." The City, which spends more than $3.1 million annually on electricity charges on everything from facilities to streetlights, also is seeking greater collaboration with the utility on renewable energy alternatives, including net metering. Luecke said the city has hired two attorneys experienced in representing governmental entities and consumer interests in front of the Indiana Utility Regulatory Commission, LaPorte attorney Shaw Friedman and Indianapolis attorney Robert Wright, to represent the city's interests. "We've negotiated a discounted governmental rate with both attorneys. They will work to help keep I&M's base rate competitive with surrounding areas to give South Bend an edge when it comes to recruiting new businesses and jobs," Luecke said. "City government occasionally has to take a stand in front of the regulators, and I thought it was important we play a role in the process." I&M is requesting an increase in annual revenues of$178 million. I&M's last base rate case was started in June 2007 and concluded in March 2009. "We intervened in that case, along with other consumer parties, and were able to successfully get I&M's initial request of a 14 percent increase reduced to just 4.6 percent," Luecke said. A pre-hearing conference in the current rate case was held Oct. 20, and the administrative law judge in the matter has set the first round of hearings for Feb. 20, 2012,through March 1, 2012. I&M has filed its case-in-chief in the proceeding(cause number 44075)with Intervenor testimony not due until April 27, 2012. Luecke added that the city has joined with other organizations in requesting a field hearing be held in South Bend so that"utility commission members can hear from members of the public. I believe it's important that residents and business owners in South Bend have their say in front of the commission, and that's why we are seeking a field hearing up here." The IURC has granted the request for three hearings including one in South Bend. The actual dates for the hearings have not yet been announced.