(AUBURN) - The City of Auburn says it will begin the process later this month to opt its electric utility out of oversight by the Indiana Utility Regulatory Commission.
The Star Newspaper reports Auburn officials say the move is aimed at saving hundreds of thousands of dollars in regulatory and legal costs tied to future rate cases, financing approvals and power cost proceedings. Auburn estimates the local-control process would cost roughly $80,000 to $100,000, compared with as much as $380,000 to $600,000 under IURC oversight.
Even with the proposed change, the city says electric rates would still remain significantly lower than neighboring utilities, including NIPSCO and Indiana Michigan Power.
For a typical residential customer using 750 kilowatt hours per month, the city estimates the proposed adjustment would increase the monthly bill by about $7.50.
Auburn officials say the utility would still be subject to state audits, public hearings, independent rate studies and local approval by elected officials before future rate changes.
The city says 77 of Indiana's 80 municipally owned electric utilities have already opted out of IURC jurisdiction, and Auburn's water utility made the same move in 2023.