INDIANAPOLIS, Ind. -- Indianapolis Power and Light Company on Thursday announced the request for a rate increase, all to fund a new natural gas power plant.
The request was submitted to the Indiana Utility Regulatory Commission and would go into effect at the end of 2017.
Customers rates will increase depending on how much electricity they use each month. An average customer is described as one that uses about 1,000 kWh per month. That customer would see a $10/month rate increase on their bill.
"There is never a good time to go in for a rate increase like this and we understand the impact it has on our customers," explained IPL Spokesperson, Brandi Davis-Handy.
The funds from a rate increase would go towards upgrading the outdated coal plant in Martinsville, Indiana. IPL said they are transitioning into using cleaner and more efficient ways to serve their customers.
"Natural gas will be the number one fuel that we are using within our portfolio," Davis-Handy said.
The IURC will have the final say on any rate increases. They could approve all, a portion, or none of the request. During the commission's approval process, IPL customers will have the opportunity to voice their opinions.
"Our customers will have a number of opportunities to weigh in," said David-Handy.
In the meantime, IPL customers are encouraged to find ways to manage their energy usage.
You can find out how much your bill might increase by clicking here.