An IPL manhole cover is seen on Pennsylvania Street, Thursday, June 9, 2011. Kelly Wilkinson / The Star / Kelly Wilkinson / The Star

IPL penalized $10M by Indiana regulators

Indiana utility regulators have socked Indianapolis Power & Light Co. with a $10 million penalty for presenting an “overly simplistic” cost/benefit study on major upgrades to two coal-fired power plants.

The Indiana Utility Regulatory Commission on Wednesday said it needed to send “an appropriate message” that utilities need to present a better analysis of capital improvement proposals.

“IPL’s presentation of its case in this proceeding fell below our expectations given the size of the proposed capital investment, time frame in which this Commission was provided to make a decision and the contested nature of the proceeding that should have been anticipated,” the agency order said.

“Merely chastising” IPL would not have sent a clear enough message, the order said. Instead, the agency added $10 million to a credit that IPL must give its customers as part of the project.

“We believe $10 million is material and sends an appropriate message to IPL,” the order said.

IPL officials could not be reached for an immediate comment.

While scolding IPL, the agency approved its proposed environmental upgrade to the Harding Street and Petersburg power plants to meet federal mercury regulations. The upgrades will raise customer rates between 2 percent and 3 percent a year between 2014 and 2017.

Read the order and the Settlement Agreement that was filed yourself.

Download the order here: 44242order_081413