Cinergy-PSI plans to increase rates before 2003

INDIANAPOLIS -- Cinergy-PSI plans to ask state regulators before the end of the year for permission to increase its electric rates, a spokeswoman for the utility said.\nThe increase would not take place until 2004, spokeswoman Angeline Protogere said Wednesday.\nWhile Protogere said PSI has not yet determined how large an increase it will seek, Citizens Action Coalition attorney Mike Mullett said he anticipated it would be more than 10 percent.\n"They haven't given us a number, but I am expecting them to propose something in double digits," Mullett said.\nThe average monthly bill for one of PSI's 700,000 customers is currently about $67. PSI's rates are about 15 percent lower than state average, Protogere said.\nPSI is seeking the rate increase to recover costs related to various improvements, including reducing nitrogen oxide emissions at its power plants and tripling the capacity of its Noblesville plant and converting it from coal to gas power.\nPart of the increase also might go toward the cost of purchasing two peaking power plants from PSI's Cincinnati-based parent Cinergy Corp., if the Indiana Utility Regulatory Commission approves.\nThe natural gas-fired plant near Cadiz in eastern Indiana and another near Madison, Ohio, are designed to provide electricity during periods of peak use.\n"We're waiting to hear from the IURC before we make a final calculation on the proposed rate increase," Protogere said. "If the commission approves the purchase, then the cost would be a part of our rate petition."\nDon Miller, a member of Concerned Citizens of Henry County, which opposes PSI's purchase of the two power plants, said an increase would burden customers during tough economic times.\n"I expect that ratepayers are going to be surprised if the Cadiz plant is dumped on them along with the rest of the stuff," he said. "With the low electric price these days, customers ought to get a rate reduction instead"