HomeMy Public PortalAbout003-2022 - opting out of IURC1
RESOLUTION 3-2022
A RESOLUTION OF THE UTILITY SERVICE BOARD OF THE CITY OF
RICHMOND, INDIANA ESTABLISHING CRITERIA FOR FUTURE COST OF
SERVICE STUDIES IF THE RESIDENTS OF RICHMOND VOTE TO OPT OUT OF
THE JURISDICTION OF THE INDIANA UTILITY REGULATORY COMMISSION
(IURC)
WHEREAS, the City of Richmond, Indiana owns and operates its own electric Utility,
Richmond Power & Light (RPL) under the supervision and control of the Richmond Utility
Service Board of Directors (Board) pursuant to IC § 8-1.5-3-4; and
WHEREAS, at one time Indiana Municipal Power Agency (IMPA) members were
subject to the IURC jurisdiction, and now only six (6) of sixty (60) current Indiana IMPA
members continue to operate under IURC jurisdiction; and
WHEREAS, the Board passed Resolution 2-2022 recommending to the Common Council
of the City of Richmond (Council) to pass a resolution to opt out of the jurisdiction of the
Indiana Utility Regulatory Commission (IURC); and
WHEREAS, the Council passed Resolution 10-2022 certifying to the Wayne County
Election Board that the following public question to the registered voters of the City of
Richmond at the next election be considered as prescribed by IC § 3-10-9-4 and IC § 8-1.5-3-
9(b) (without quotations):
“Shall the municipally owned utility be taken out of the jurisdiction of the utility
regulatory commission for the approval of rates and charges and of the issuance of
stocks, bonds, notes, or other evidence of indebtedness?” [ ] YES [ ] NO
WHEREAS, the Board and RPL operate a municipally owned, not-for-profit utility in a
responsible and prudent manner, resulting in rates that are lower than all other Indiana for-profit
electric companies; and
WHEREAS, the Board uses Cost of Service Studies to establish a Rate Tariff (Tariff)
based upon the cost of providing electric services to the ratepayers; and
WHEREAS, the Board desires to establish criteria to be followed for future Cost of
Service Studies when determining future Tariffs.
NOW, THEREFORE, BE IT RESOLVED by the Utility Service Board that, if the voters
of Richmond elect to opt of the IURC in the November 8, 2022 election, the following criteria
will be used for future operations:
While there are no present plans to do so, the Board and RPL may desire in the future to
adjust the Tariff in accordance with costs of providing electric service to the ratepayers of
Richmond and future Cost of Service Studies will be performed in increments of no more than 5
years apart to help keep up with inflationary changes impacting RP&L’s operational costs; and
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Any future Cost of Service Studies will be completed by a third-party consulting firm
with expertise in assessing the costs associated with and rate structures associated with providing
electrical services by municipally owned electric utilities; and
Programs, such as the winter assistance program from the Interlocal Community
Assistance Program (ICAP), will continued to be honored; and
Guidelines established by the IURC for service disconnection due to non-payment and
reconnections will continue to be utilized as well as IURC parameters established for late fees;
and
Any future proposed rate adjustments for RPL require adherence to Indiana State Law
processes and procedures, including customer protection via the requirement for
nondiscriminatory, reasonable and just charges pursuant to IC § 8-1.5-3-8, customer input at
public hearings, and rate adjustments approved by elected public officials.
PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF RICHMOND
POWER & LIGHT THIS ___ DAY OF _____________, 2022.
BOARD OF DIRECTORS OF
RICHMOND POWER & LIGHT
By: _________________________________
Chairman
Attest: ____________________, Clerk