CARMEL, IN – For a second consecutive year, 61 communities in Indiana and Ohio will see a decrease in their wholesale electric rates in 2018. The Indiana Municipal Power Agency (IMPA) announced an average 5.25% decrease in wholesale electric rates to its members, effective January 1, 2018.
“While prices seem to be on the rise for other utilities, IMPA is extremely proud to pass on a decrease in wholesale electric rates to our member municipal utilities for 2018,” commented Raj Rao, President and CEO. “Thanks to the visionary efforts of our founding fathers in the 1980s, who foresaw the benefits of creating an organization that would own and share generating resources amongst many utilities, our members continue to reap the benefits of municipal ownership and Agency membership. IMPA’s ownership in generation assets, combined with a reduction in regulatory requirements at the federal level and our strong financial position, has enabled us to pass on this decrease to our members.”
The decrease is the largest wholesale rate decrease in the Agency’s history. IMPA’s wholesale rates are based on the Agency’s operating costs, which are derived from its diverse generation and transmission ownership, purchased power, debt service and administrative and general expenses. This decrease is the result of IMPA’s investments in generation and transmission projects over the last two decades. All of the Agency’s newer units, including new solar projects, and a reduced regulatory burden are contributing to lower, sustained costs for 2018 and beyond.
The proposed rate decrease comes on the heels of an average 1% decrease in IMPA’s wholesale rates in 2017.
The Indiana Municipal Power Agency is the not-for-profit wholesale power provider to 61 cities and towns across Indiana and Ohio who own and operate the municipal electric distribution systems in their communities. IMPA member communities deliver electric service to approximately 330,000 individuals throughout the state. For more information, visit www.IMPA.com.