IURC denies rate hike for electric car-charging stations

The future of the city's expansive electric car-sharing plan is uncertain after state regulators on Wednesday denied a $16 million rate increase to Indianapolis Power & Light Co. to pay for charging stations.

The Indiana Utility Regulatory Commission's decision, if it survives appeal, likely means the city and IPL will need to find alternative funding for the chargers before the BlueIndy cars can leave the curb.

"Our next step is to review the order and meet with the city and BlueIndy to determine whether the project can move forward," said Brandi Davis-Handy, a spokeswoman for IPL.

The commission reduced an agreement among the city, IPL and the Office of Utility Consumer Counselor to charge all Indianapolis electric customers 28 cents a month to cover the $16 million cost to IPL of building the powering stations. Instead, the IURC said the utility could pass along only $3 million in costs to extend power lines to the stations.

"We ultimately determined that there was insufficient evidence to justify the use of ratepayer funds to install infrastructure owned by a private company," Commission Chairwoman Carol Stephan said in a statement.

The ruling by the five-member commission aligned with opponents of the proposal, who contended that all ratepayers should not have to pay for a car rental that would be used by a small percentage of the population.

But the IURC said it was fair to charge consumers for the line extensions and upgrades because they would benefit economic development.

BlueIndy has been ready to roll out its car share for months but had been waiting until the IURC's decision before it started. Company spokesman Bob Briggs refused to comment on the ruling Wednesday or say whether it would force the company to delay or scrap the program.

On Tuesday, he said a ruling against IPL would not deter BlueIndy.

In a statement, Mayor Greg Ballard said the city was not giving up on the program and said the IURC ignored the good it could do for the community.

"Despite this finding, the city remains committed to working with our partners … to implement a successful electric vehicle car-share program for the benefit of our entire community," Ballard said.

"The order was contrary to recommendations of OUCC — the state's consumer protection agency — and contained little mention of the proposed program's public benefit or economic development impact."

The IURC called the program laudable and urged the city to try to keep it alive.

"We encourage the parties to continue to work together to provide this service to our community's residents and visitors," Stephan said.

The stations would power cars run by The Bolloré Group, a French conglomerate that wants to invest $35 million to provide 1,000 all-electric cars at 250 charging stations. It would be the largest electric car-sharing program in the country.

The Citizens Action Coalition, a utility watchdog group that opposed the hike, praised the IURC for its ruling.

"We applaud them for having the courage to say 'No,' " said Kerwin Olson, executive director of the coalition.

But Olson said ratepayers shouldn't have to pay for the line extensions, either, because IPL failed to show that it would make a profit from the BlueIndy program.

"No evidence was presented that consumers would be made whole eventually," Olson said.

Rep. Cherrish Pryor, D-Indianapolis, said the ruling showed the commission "will listen when the cause is just."

"I must say that I am shocked at today's news, but this is the best kind of surprise," she said. "The mayor of Indianapolis should have worked with the private company to find a way of funding this proposal without demanding participation from all IPL customers."

IPL has 20 days to appeal the ruling.

Call Star reporter John Tuohy at (317) 444-6418. Follow him on Twitter: @john_tuohy.