Utility describes South Loop tie to Park 100, billing tracker error and power‑supply concerns

Tipton Utility staff told the board on Sept. 2 that the utility completed underground work to connect Park 100 to a more reliable circuit called the South Loop and plans to switch service to that circuit to reduce disruption for the large customer. Staff said the work required roughly 5,600 feet of underground bore and estimated the investment at about $3,040,000.

Staff described the switching capability as manual but rapid, saying the utility can switch circuits within about 10 minutes if needed to respond to outages on the South Loop. The staff member said Park 100 currently lacks backup generation and that a prolonged outage would significantly disrupt their operations.

The board was also briefed on a billing/tracker input error that occurred in the third and fourth quarters of last year. Staff said the tracker number was entered with the wrong sign in those quarters and that the state board of accounts discovered the error during an audit. To make customers whole, staff said they will correct the tracker for the current third and fourth quarters and run the reconciliations through those periods.

Staff also said a base residential charge was input incorrectly by a third‑party vendor (Keystone) as $10.15 instead of the intended $10.50, producing a 35¢ undercharge for 20 months. Staff and the state board agreed to leave the undercharge (about $7 per residential account over the 20 months) with customers rather than recover it.

The utility manager reported the average residential impact from the tracker correction will be about $2 to $3 per month. Staff said they plan a deeper review of larger commercial customers to ensure their bills are accurate and that any corrections benefit customers if they show overpayment.

Board members who attended the Indiana Municipal Power Agency (IMPA) meeting on Aug. 22 reported concerns about the Prairie States power plant and the political pressure to retire coal assets. The staff member said Tipton’s ownership share and outstanding bonds on the plant were factors raised in the discussion; the transcript records concerns about bond obligations through 2040.

No formal action was taken on the electrical investment or billing corrections during the meeting; staff said the billing fixes will be implemented administratively.