Indiana Utilities Corp Rates
Key components in a gas bill include gas costs and base rates.
Base rates cover "non-gas" costs for a utility, including operational, maintenance, and capital costs. A natural gas utility is allowed to earn a return on this portion of the bill.
Indiana Utilities Corporation is requesting a 24.4% base rate increase in a pending rate case before the IURC.
Written consumer comments are invited for the case record. The OUCC expects to file testimony on Sept. 19.
The utility filed its petition and the following testimony and exhibits on June 13, 2024:
All publicly filed documents in the rate case (Cause No. 46086) are available on the Commission's website.
Indiana Utilities Corporation's current base rates were set in February 2019. In its rate case order, the IURC approved a settlement agreement between the OUCC and the utility. It reduced the utility's requested increase from 5.24 percent to 4.29 percent.
Gas Costs
Natural gas utilities buy gas for their customers in a competitive wholesale market. Indiana law allows utilities to adjust rates periodically to recover changes in those costs, which can go up or down. These costs comprise a significant portion of a residential bill and are recovered through the Gas Cost Adjustment (GCA) process.
- Utilities may recover wholesale gas costs on a dollar-for-dollar basis but may not profit on them.
- Before adjusting rates to reflect the costs, a utility must demonstrate that it has shopped prudently in the competitive market.
- Each GCA filing requires OUCC review and IURC approval.
Indiana Utilities Corporation files gas cost adjustment requests every six months. Its most recently approved GCA (Cause No. 37357 GCA-116) received approval in April 2024. It will affect bills for May through October 2024.
Additional Resources
7-3-2024