RPL board approves referral of revised rate tariff to Richmond Common Council

The Richmond Power & Light (RPL) board voted July 13 to approve Resolution Res 2-2026 and refer a revised rate tariff to Richmond Common Council for consideration.

Tony Foster, RPL general manager, told the board the cost-of-service study underpinning the tariff is intended to ensure rates recover operational and capital costs, rebuild depleted cash reserves and maintain equity across customer classes. “It’s important to periodically assess whether the existing rates are sufficient to recover costs and margins,” Foster said.

The tariff package would: (1) phase in an increase to the residential facilities (fixed) charge from the current $12.08 to a consultant-recommended $16.49 by 2029; (2) roll the energy cost adjustment (ECA) into the new base energy charge (Foster presented an example starting point of roughly 11.424¢/kWh after the roll-in); and (3) create two transparent riders — a federal environmental (CCR/coal ash) rider and a general-fund transfer rider — that would be listed separately on customer bills. Foster said the federal environmental rider would be effective Jan. 1, 2027 and charged per kWh; he emphasized the riders reflect existing expenditures RPL has already been setting aside rather than entirely new charges.

Foster summarized the financial rationale: RPL has been setting aside nearly $2.0 million per year for the coal combustion residual (CCR) project, accumulating about $12 million to date, but current estimates for the project have grown to nearly $30 million. He also told the board a 2024 equipment study found seven large power transformers will need upgrade or replacement over the next 10 years, and that the rate changes would help fund ongoing capital needs and rebuild cash reserves that have been stressed by recent inflation and unplanned equipment failures.

Using a 1,000 kWh/month customer example, Foster said the fourth-quarter 2026 rider would add about $1.85 to a typical bill; the largest single-year increase in the proposed phasing would be about $5.54 in 2027, with a further example amount of about $3.30 cited for 2029. Foster did not provide a definitive dollar figure for 2028 in the presentation materials shared in the meeting packet.

The tariff also includes several program and cleanup items: clarifying qualifying-facility (PURPA) interconnection language and cost responsibility for excess facilities, removing an obsolete EV‑charging rate (because local charging stations fit existing general power rates), and adding a proposed prepaid-billing pilot that would allow customers to prepay electricity with a $50 initial deposit and $25 minimum additional payments.

Foster identified NewGen Strategies and Solutions as the consultant that completed the study and said utility counsel (Chris Wheeler, Bose McKinney) helped draft tariff language. He also described outreach steps, including a scheduled large-customer meeting at IU East and placing the tariff and a frequently asked questions page on RPL’s website.

Board action and next steps Bill (a board member identified in the transcript) moved to approve Resolution Res 2-2026 and refer the tariff to Richmond Common Council; a second was made and the Chair called for a voice vote. The meeting record shows a voice vote in favor — “Aye” — and the Chair stated the motion carried. Foster said referral to council begins the municipal process; if the council accepts the referral it would introduce an ordinance and follow the usual committee review, two readings and a public hearing before any ordinance adoption.

What the tariff is intended to pay for Foster emphasized the tariff is intended to: rebuild operating cash reserves toward an industry‑recommended balance (about 200 days cash), fund capital replacements (including the seven large transformers identified by the 2024 study), and continue the annual set‑aside for the CCR project that may convert to bond financing depending on timing and cost. Foster gave multiple examples of spiking equipment prices and said the proposed phasing and riders were meant to limit abrupt year‑to‑year swings for customers while preserving RPL’s financial stability.

Public interest and outreach Foster said RPL will continue direct outreach to large customers and will make information available on the utility website and via QR codes on customer bills to explain the riders and how the changes affect individual bills. He also said RPL’s projected average residential bill at the end of 2029 would remain competitive with the July 2025 statewide average cited from IURC data used in the presentation.

The meeting concluded after the board approved the referral and the Chair adjourned the session. The tariff now moves to Richmond Common Council for its review and the statutory municipal ordinance process.