Scott Fadness has a main job, being Mayor of Fishers, the state’s fifth- or sixth-largest city. But he has a couple of other roles, one regional, the other statewide. He serves as the chair for the Central Indiana Council of Elected Officials. Fadness also chairs the group representing the interests of local governments around the state in the General Assembly, the Advancing Indiana Municipalities (Aim) Legislative Committee.
Fadness
Fadness issued a statement Wednesday, in all three roles, opposing rate increases that utilities in the state are requesting to make up for reduced revenue related to the COVID-19 economic downturn.
Fadness submitted the statement to the Indiana Office of the Utility Consumer Counselor (OUCC) as part of the proceedings before the decision-making body, the Indiana Utility Regulatory Commission.
Here is the entire Fadness statement:
The Indiana Utility Regulatory Commission plans to review a petition to allow a group of regulated utilities the ability to track revenue loss due to the decrease of usage during COVID-19 pandemic. This action is in anticipation of their ability to recoup that loss by raising rates. This is poor public policy at best and greedy at worst. Utilities are regulated in order to ensure that essential services that function as monopolies do not take advantage of the rate payer, the small business owner, the steel mill operator, the public school system, or your local government. The IURC does not exist to de-risk a sector of industry from any downturn in the economy, regardless of the cause of that downturn. This is undoubtedly a user-funded bailout of utilities.
Over the last nine weeks I have witnessed countless businesses, both small and large, make unbelievably difficult decisions as they face the realities of decrease in demand due to COVID-19. They have let go of long-term employees. They have burned through their life savings to maintain payroll. They have had to sell their assets. They have been forced to reinvent themselves. In Fishers, the business community has met almost 100% voluntary compliance with all of Governor Holcomb’s Executive Orders. Our civic institutions are also making the necessary adjustments by eliminating programs, not backfilling positions, and slashing budgets, among other actions.
Comparatively to the regulated utilities asking for their bailout, when a small restaurant in Fishers opens back up and the owner realizes the full measure of his or her financial loss, are they going to raise the cost on the menu to make up for it? No, because the forces of a free market will not allow for that. When local governments see significant reductions in revenue due to the downturn in the economy, will they seek to raise taxes without any accountability? No, because the residents have a voice and will hold government leaders accountable through systems in place.
To that end, I am asking the IURC to allow our regulated utilities to share the burden of the free market. Please do not proceed with the request to permit the utilities to recoup costs stemming from a decrease in market demand. In denying the request, you will not only act in the best interest of our residents and businesses, but you will ensure the equitable distribution of the burden of these very difficult times.
Sincerely,
Scott Fadness
Mayor, City of Fishers
Chair, Central Indiana Council of Elected Officials
Chair, Advancing Indiana Municipalities (Aim) Legislative Committee