Ameren Illinois Files For $69 Million Rate Hike
Ameren Illinois is seeking a $69 million rate hike it says follows the mandate to set up a “smart grid” program. If approved, it would mean increases of between $6.37 and $9.55 a month for the average residential customer.
Illinois’ smart-grid law calls for the state’s utilities to invest millions in the electric grid in exchange for a formula-based rate process that lets companies recoup costs quickly. “Rates have decreased significantly through the formula rate process,” Craig Nelson, the company’s senior vice president of regulatory affairs and financial services, said in written testimony submitted to the commission. “As a result, even with the full impact of this rate increase, most residential customers will be paying less in 2015 than they did in 2011.”
Utility watchdogs vowed close scrutiny. “We will do our best to eliminate unjustified spending and reduce the proposed increase as much as possible,” said David Kolata, executive director of the Citizens Utility Board, an Illinois consumer group.
More: St. Louis Today
INDIANA
Indianapolis Electric Car Program Spurs Call for $16 Million Rate Hike
The city of Indianapolis joined Indianapolis Power and Light in a request for a $16 million rate hike to fund the city’s proposed electric car sharing program.
The rate hike, which would cost the typical residential customer about 44 cents monthly, would go into effect January 2018.
IPL said it would cost about $16 million to build and power 1,000 charging stations for the cars, which residents could rent for as little as 15 minutes at a time. Bollore Group, a French concern, would provide 500 plug-in cars and will invest $35 million in the program.
The electric car sharing service would be the largest in the United States and would complement Bollore’s plan to convert the city’s 3,100-vehicle fleet to electric, natural gas or hybrid vehicles by 2025.
More: The Indianapolis Star
MARYLAND
Pepco Seeks $43 Million Rate Increase
Pepco is asking regulators for a $43 million rate hike, its third increase request in three years. The increase, which would go into effect July 4, would raise the average monthly bill for customers in Montgomery and Prince George’s counties by $4.80. This would come atop a 2013 increase of $27 million.
Pepco has been a magnet for criticism for several years, primarily due to its reliability record. “Pepco should not be allowed to request a rate increase from the [Public Service Commission] until it can prove that it can keep power on consistently for one month,” said Abbe Milstein, founder of Powerupmontco, a group that advocates for ratepayers’ rights.
Pepco CEO Joseph Rigby has said the company plans to file a rate increase request every year for the next couple years.
More: Bethesda Now; The Montgomery County Sentinel
NEW JERSEY
Fisherman Wind Project May Not Be Dead Yet
Fishermen’s Energy said it will appeal the Board of Public Utilities rejection of its proposed 25-MW offshore wind farm. “We are disappointed in this decision but not surprised,” said Paul Gallagher, Fishermen’s chief operating officer following a second BPU defeat last week. “We are grateful that New Jersey has an independent judiciary and look forward to having the merits of our application finally heard.”
Fishermen’s wanted the BPU to delay its ruling until the U.S Department of Energy came out with the final round of grants for demonstration offshore wind projects. Fishermen’s has complained that the BPU overestimated the end-price of the energy its project would generate. The board said last month that the $188 million project would be too risky for electric ratepayers.
The project’s five turbines would have generated about 25 MW of electricity, but the project depended on a mixture of subsidies and federal grants to make sure ratepayers didn’t get stuck with sky-high bills.
More: Philly.Com
PENNSYLVANIA
Polar Vortex-Related Rate Spikes Spur Retreat to Default Suppliers
Spiking power rates following the polar vortex spurred nearly 50,000 Pennsylvania electricity customers to back away from competitive suppliers, the Public Utilities Commission said last week. The PUC reported that the retreat from competitive suppliers came after wild price swings for variable rate customers. The PUC said that 2,177,499 customers are signed up with competitive suppliers, down 49,368, or 2.2%, from early March.
More: The Philadelphia Inquirer
PUC to Review PPL Request for Storm Money
The Public Utility Commission agreed to consider a PPL Electric Utilities request to increase customer fees to cover storm damage costs.
On April 3, the PUC approved a rider allowing the company to bill customers for any storm-related damage not covered by the $14.7 million already collected in base rates. The order limited the rider to 3% of PPL’s 2012 distribution revenue, or $25.5 million.
The PUC agreed last week to consider PPL’s request to base the cap on all distribution, transmission and generation fees. “We are seeking clarification on how that 3% cap is calculated,” said Bryan Hay, a PPL spokesman. “We don’t oppose the concept of a cap. We believe the cap is set too low.”
More: Citizens Voice
Sunoco Pipeline Files for Public Utility Status
Sunoco Pipeline L.P.’s application to become a public utility, which would exempt its planned 299-mile Mariner East pipeline from local zoning codes, has environmental groups up in arms. Four groups — the Delaware Riverkeeper Network, the Clean Air Council, the Pipeline Safety Coalition and the Mountain Watershed Association — filed requests to intervene in the case before the Public Utility Commission. The groups argue that Sunoco doesn’t qualify as a public utility.
Sunoco is converting a refined-oil pipeline to carry natural gas liquids from the state’s Marcellus Shale fields to an energy hub Sunoco is building at its former Marcus Hook Refinery.
Senate Majority Leader Dominic Pileggi supports shale-gas development but says he is against granting Sunoco’s exemptions. “The economic benefits of the Marcellus Shale industry must be carefully balanced with the potential burdens to our communities and the environment,” Pileggi wrote. “Requiring Sunoco to respect local ordinances related to pipeline construction will help to achieve this balance.”
More: Philly.com
WEST VIRGINIA
Marshall County Approves Combined Cycle Plant
The Marshall County Commission gave its go-ahead for the construction of a $615 million natural gas combined cycle generating plant. The 549-MW plant would be built on a 37.5-acre plot currently owned by Honeywell International.
The plant will need state and federal approvals, but developer Moundsville Power LLC says it is confident of a 2015 construction start, with the plant going into operation by 2018.
More: State Journal