Governor attempts to protect utility consumers

By Heather Mangold
City Editor

California isn't the only state worrying about its utilities.

On Wednesday, Gov. Frank O'Bannon urged Indiana Hoosiers to help him encourage lawmakers in the State Senate to protect utility consumers.

According to a news release, Indiana homes and businesses depend on utilities for basic services, such as electricity, telephones and water. The release said Indiana, unfortunately, has had several recent examples when Hoosier consumers were not treated fairly, and the state did not have the tools to protect our citizens like other states.

"We are currently among the bottom 10 states in our ability to protect utility consumers," O'Bannon said in the release. "Indiana utility consumers deserve as much protection as citizens in other states. The State Senate needs to take action to level the playing field to ensure Hoosiers are protected."

Dan Schuster, project manager for engineering utilities and construction at Purdue, said that some of those problems involve consumers' complaints about customer service from their utility providers. Schuster added that there is concern in Indiana about what will happen in the summer involving utility prices.

"We could be hurting a little if we start getting a prematurely hot summer," said Schuster.

Schuster said stations for electricity use natural gas as their fuel and although Indiana has an adequate transmission system, problems could develop.

Angeline Protogere, a spokesperson for CINERGY/ PSI Energy, said that Indiana regulations and authority for providing utilities are not the problem.

"Surrounding states have about the same fining authority as what Indiana has," said Protogere. "The difference here in Indiana is that the Indiana Utility Regulatory Commission has to go through county prosecutors in order to fine, whereas other states do not."

O'Bannon said that he wants lawmakers to vote in favor of two bills that would provide consumer protection.

House Bill 1181 would give the Indiana Utility Regulatory Commission the power to impose fines or other sanctions against public utilities that don't give Indiana customers reliable service. The bill also promotes local phone competition in Indiana to ensure rules are fairly applied and any anti-competitive behavior is penalized, according to the release.

House Bill 1924 would allow the Indiana Utility Regulatory Commission to review utility holding company mergers so it can better protect Hoosier ratepayers.

"These two bills are necessary to ensure Indiana can prevent utility problems before they occur and to fix utility problems if they do occur," said O'Bannon in the release.

The failure of basic utility companies to provide services affects residential and business consumers, said O'Bannon.

Protogere said that her organization was not aware of any time when the commission has ever had to order CINERGY/ PSI Energy of Indiana to pay fines for not providing service.

The commission would require utility companies to pay fees when the company violates any portion of the Public Utility Act. An example of a violation would consist of a utility company charging fees to its consumers for rates other than what it has under file and under tariff.

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City editor:
Heather Mangold

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