State approves rate hike for Citizens Thermal

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Citizens Energy Group will raise rates for about 250 customers that use the utility’s steam and chilled water services.

The Indiana Utility Regulatory Commission on Wednesday gave approval to Citizens to increase customer rates as a way to generate $7.6 million, or 10 percent more, in operating revenue.

Individual rate increases will differ customer to customer, depending on which rate class they fall into. The utility did not have those figures immediately available Wednesday afternoon."

Most of Citizens Thermal’s customers are large institutions, such as IU Health, IUPUI and Lucas Oil Stadium.

The funding will cover the costs of converting the Perry K Steam Plant downtown to natural gas from coal. The upgrades are supposed to lower emissions and reduce operating costs, among other benefits, said Sarah Holsapple, a spokeswoman for the utility.
Holsapple said.

Also, the rate increases will cover an existing line of credit and finance a system expansion.

Wednesday's IURC ruling is on top of rate increases that Citizens Energy has secured for other divisions. The utility received approval in March to raise water rates and in April wastewater rates.

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