IMPA Increase Impacts Electric Rates

by | Jan 1, 2015 | Lebanon Utilities Blog

As of January 1, 2015, customers will experience a very slight increase in their electricity rates.

That increase was initiated by the Indiana Municipal Power Association (IMPA), a wholesale power organization of which Lebanon Utilities is a member and from whom we purchase 60 percent of our electricity. IMPA’s wholesale rate increase to its members is 2.98 percent; thus, we will be passing along an increase of less than 2 percent to our customers.

The cause of this increase is threefold, according to IMPA:

  • EPA Regulations
  • Increased RTO (Regional Transmission Organizations) Transmission Charges
  • Increased Fuel and Purchased Power Costs

Even with this increase, Lebanon Utilities’ rates will continue to be significantly less than those of surrounding providers including Duke Energy, Boone REMC and NIPSCO.

We believe IMPA is a fiscally responsible entity and partner for Lebanon Utilities. They recently refinanced approximately $190 million in power supply system bonds in an effort to minimize the rate increase. The present value savings from that reduction is approximately $26 million.

Rest assured we monitor markets, regulations and ancillary issues that may ultimately impact your utility bill; we do everything in our control to provide reliable, efficient utilities at the best possible price to all customers. However, we are especially sensitive to large organizations like yours for whom utility costs are a major expenditure and, perhaps, factored in to locating or even remaining in Lebanon. During the course of the last year, we have made several improvements and investments to our systems that improve both our reliability and electric capacity, including:

  • A $3.6 million improvement project that included replacing both the West and Central Substation transformers, replacing substation controls and upgrading from 4 to 12 kV circuits.
  • In December, an aging transmission line breaker at the North Substation will be replaced
  • We are currently planning a future substation along with the route and construction of a new 69 kV transmission line that will allow Lebanon Utilities to have a second transmission line loop in our system for improved reliability.

For more information, call 765.482.5100.