SB 309 would impose harsh restrictions on towns like Bainbridge

Sunday, February 1, 2015

While senate bills may not be the most exciting topics, the future of Senate Bill 309 may very well affect municipalities like Bainbridge in offering competitive utility rates to drive growth, something Indiana's 72 municipalities are trying to combat, if only they would be heard by the bill's supporters.

The bill removes what is in current statute and would not only prevent municipalities from extending rates to properties annexed after May 12, 2015 but, would remove their right to petition decisions made by the Indiana Regulatory Committee (IURC) in regard to offering utilities to new customers, which is of major concern to the municipalities of Indiana.

"We don't want to throw the baby out with the bathwater," Carolyn Wright, vice president of government relations for the, Indiana Municipal Power Agency (IMPA) said.

"We think there is a great deal of value to let municipalities like Bainbridge to supply lower cost power to citizens of Bainbridge."

Municipalities make up only seven percent of all utility providers in the state according to Wright.

With a state population of just about 6.5 million people, municipalities supply utilities to under a half-million Hoosiers, roughly a quarter of the population of Indianapolis.

This minority status leads those opposed to the current version of the bill to question why they are unable to get the bill's supporters to budge, or to respond for that matter.

"It's a lot of mixed signals," Wright said of the IMPA's attempt at compromise.

Bainbridge utility superintendent Troy Elles highlights that municipalities are seeking revisions to the bill that are important to the future of many communities.

"We're against the bill as it is written now, " Elles said.

"It's just not good. It's not good for us and it's not good for our customers and that's who we're looking out for."

Proponents of the bill have made the argument that municipalities have a competitive advantage over non-municipal utility providers.

Although with only seven percent of the utility market being served (and less than a one percent rate of change in utility territories in over 25 years), it seems a tough argument to make.

"We're kind of facing a David-and-Goliath battle here," Wright said, elaborating that if municipalities pose a threat to the other 93 percent of the utilities market that "we must be doing something wrong."

Whether it is approved, amended or does not pass will be handled in the coming months.

"It's a long road to April," Wright said.

"We just want to make sure that the folks who live and work and have business in the town limits of these communities have the opportunity to use that municipal service."

Senate Bill 309 is currently slated to be heard in the Senate Utilities Committee on Thursday, Feb. 5.

Updates on the legislation will be published as they come available.

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