Anderson board backs 12.6% electric revenue increase, authorizes bond cap to fund upgrades

The Board of Public Works of the City of Anderson voted to recommend revised electric rates and a bond authorization to the City Council on motions passed in the board meeting beginning at 1:30 p.m.

Attorney Chris Chinnock, representing the utilities, outlined procedures for electric-rate changes and noted electric actions are subject to final approval by the Indiana Utility Regulatory Commission. Jennifer Wilson of Crowe presented a revenue-requirement analysis showing the utility needs an additional $12 million in revenue, producing a 12.58% overall increase in revenues. Wilson said the capital-improvement plan totals $19.5 million, with roughly $5.0 million proposed for equipment leases and about $4.6 million intended to be bond-funded.

Paul Cyrus, director of Anderson Light & Power, described projects the bond and lease proceeds would support, including Meadowbrook Manor underground cable renewal, substation breaker replacements, adding a second transmission line to Range Line substation, the Plank 20 substation renovation, building repairs and cybersecurity and metering upgrades (TWACS). “All of these things will not only help our infrastructure and upgrade these to maintain reliability,” Cyrus said.

Wilson said the proposed rate design would shift from a two-block declining energy rate to a single energy block, which will increase bills for higher-usage residential accounts; the typical residential customer would see an increase in the range of $12–$18 depending on usage, and the monthly facilities charge would rise about $2.64. Wilson summarized the analysis: “Our overall revenue needs increase by 12.58.”

On board motions, members approved Resolution 1-26 recommending adoption of revised electric rates and Resolution 2-26 recommending the council approve electric utility revenue bonds to finance improvements. The board discussed bond terms and noted staff modeled a 20-year amortization while the ordinance would authorize up to 25 years depending on market conditions. Chinnock and staff said the bond ordinance includes an authorization cap up to $5.3 million to allow room for bids that come in higher than estimates.

The board approved both resolutions by voice vote; there were no recorded roll-call tallies in the meeting transcript. The matters will proceed to the Common Council and, for the electric rate changes, later to the IURC for final action.