EVANSVILLE — CenterPoint Energy bills are poised to rise again as the future of the A.B. power plant was decided Tuesday afternoon.
The Indiana Utility Regulatory Commission approved CenterPoint’s request to replace its coal-burning plant with new natural gas combustion turbines. That means the utility can now ask for a customer rate increase to cover the cost.
The project was originally estimated to cost $323 million in total, with monthly bills rising $23 a month for residents using 1,000-kilowatt-hours of electricity, according to testimony CenterPoint filed to support its request last year.
For subscribers:CenterPoint bills have gone up in Evansville-area over last 5 years. Here's how much.
Tuesday, the total cost of the project was listed at $334 million, an $11 million increase. Despite that, a statement from the utility released right after the decision claimed customers will only see a bill increase of less than $10 per month.
CenterPoint spokeswoman Erin Merris said the $23 was based on the cost of what the turbines would be on their own.
"However the $23 a month did not take into account the combined savings to be realized through securitization and other bill reductions," she stated.
The company already has the overall highest residential rates of the five Indiana investor-owned utilities. It also has smallest customer base, at 140,000 ratepayers.
Construction will start immediately, and the rate increase will be requested in a subsequent IURC case. Merris said rate increases will not come until the rate review at the end of 2023.
More:Report: Evansville and all of Midwest could be prone to 'rolling blackouts' this summer
More:CenterPoint should explore alternative to rate-hiking gas turbines, according to OUCC
Approval of the project comes in spite of multiple intervenors and more than 2,000 pages of public comment, both in person and via letter, asking that the project not go forward.
Direct Action Against CenterPoint Energy, which advocates for ratepayers, formed last year in response to high utility bills and the ongoing request for this project.
On Tuesday, the group said in a release that members were disappointed to learn the IURC had approved the request.
“The IURC approval comes against the wishes of local residents, who submitted 2,156 pages of public comments regarding (the project),” he said. “In addition, all speakers in attendance at an Evansville field hearing on the matter in October 2021 asked for its denial.”
Members of DAACE are continuing to call for CenterPoint to stop the project, despite its approval, and seek an alternative to the building of the two turbines.
"When the mantra of 'reliability' is used to justify poor investments like these gas turbines, we also need to consider affordability for the consumers who ultimately pay for these projects,” the release states. “Natural gas has proven to not be affordable or have a reliable or stable price, as we all learned the hard way from our bills during the last heating season. We need to spend our money wisely on renewable generation that is not tied to unpredictable and speculative fuel markets."
Ratepayers saw natural bills skyrocket this winter amid a 271% increase in distribution charges.
Citizens Action Coalition Executive Director Kerwin Olson said inflation has increased costs for construction, likely meaning the cost to consumers will grow.
“This outrageous decision approves unneeded and expensive fossil gas power plants that will significantly raise the cost of electricity for CenterPoint customers,” he said. “The IURC’s approval of more expensive fossil gas plants in the middle of a utility affordability crisis and the climate crisis shows how out of touch our utilities and their regulators are with Hoosiers who are struggling to make ends meet and demanding a transition to clean, affordable energy solutions.”