City, IPL ask for $16 million electric rate hike for car share program

Indianapolis Power and Light and the city are asking state regulators for a possible $16 million rate hike to cover the cost of Mayor Greg Ballard’s proposed electric car sharing program.

In a filing with the Indiana Utility Regulatory Commission, IPL research analyst Kimberly Berry said the rate increase would amount to 44 cents a month for the typical customer beginning in January 2018.

Berry said it would cost $12.3 million to install charging stations at 200 locations across the city for the mayor’s car-sharing program and a little less than $4 million to extend electrical lines to those stations.

The city has contracted with the Bolloré Group, a French conglomerate, to provide 500 plug-in electric cars at sites across town that residents can rent for as little as 15 minutes to run errands.

Bolloré, which runs a similar program in Paris, will invest $35 million in the system. But IPL says the cost of building and powering up to 1,000 charging stations will cost $16 million and it needs to recover the cost from consumers.

Lotter described the city’s and IPL’s petition as permission to raise rates only if a profit sharing plan between the plug-in company and city doesn‘t pay for the installation costs.

Under the agreement the city and IPL will receive 15 percent of the revenues from the car share, with IPL getting the first $4 million.

Ballard said residents will benefit from the modest rate increase in the long run.

“The EV (electric vehicle) sharing program is a proven transit alternative for residents who cannot afford to own a car or for those who do not want to own a car,” Ballard told regulators. “EV sharing is also often less expensive than owning a car. Multiple studies show that car sharing is more cost effective immediately and over the long run.”

The city would also be responsible for paying its parking meter vendor, ParkIndy, at least $3 million over 10 years for removing meters to make way for all 200 charging stations but the cost could be as high as $16.8 million, said Director of Enterprise Development David Rosenberg in testimony to regulators.

The agreement with ParkIndy charges the city $45,000 for each meter it removes downtown and $29,000 for meters removed in Broad Ripple.

Mayoral spokesman Marc Lotter said the $16 million is a “worst case scenario” if all 200 charging stations are placed where there are meters.

“We have the right under the contract to move meters around with no charge and will be able to do that in most cases,” Lotter said. “In other cases we will find areas where we don’t have to displace any meters.”

City County Councilman John Barth said he never liked the 50-year parking meter contract and likes it even less now.

“The taxpayers are going to have to take a hit to get access to our own parking meters,” Barth said. He said the fee, combined with the possible rate hike, might be hard for some residents to accept.

“On balance we really have to weigh what the priority to the public is and when we ask for them to pay for services” Barth said. “I would say putting more police on the street comes before this.”

Barth estimated that $16 million would pay for 125 officers for the shorthanded Indianapolis Metropolitan Police Department.

Lotter noted that council Democrats have repeatedly defeated a Ballard proposal to raise $9 million annually to hire 100 more cops by eliminating a homestead exemption.

The electric car sharing service would be the largest in the United States and would complement Ballard’s plan to convert the city's 3,100-vehicle fleet to electric, natural gas or hybrid vehicles by 2025.

“This will immediately have a large impact on our community’s use of oil and demonstrate that EVs are a viable alternative today,” Ballard told IURC. “Once people experience the technology, I strongly believe people in our community and beyond will want to use and even may buy an EV. Further, the program will allow owners of EVs to charge at these chargers, which is extremely important.”

Call Star reporter John Tuohy at 444-6418 and follow on Twitter @john_tuohy.