RP&L explores prepay program

Richmond Power and Light customers might have the option to prepay for their electricity if the utility adopts the program it’s considering.

During RP&L’s ongoing cost of service and rate study, the utility is investigating two programs. One is for large industrial users and the other is for residential customers. Tony Foster, the utility’s general manager, explained both to RP&L board members, who are Richmond Common Council members, during their May 5 meeting.

The prepay program would be similar to a prepaid mobile phone plan, Foster explained. Residential customers would pay up front for their electricity, then receive smartphone notifications through the SmartHub app when their account balances are low.

Foster said RP&L previously considered a similar program, but did not pursue it. Now, however, other Indiana utilities have implemented prepay programs.

Participation would only be open to residential customers, and they would need the SmartHub app and an AMI meter that exchanges information with the app. A $50 minimum payment would be required initially, then additional payments of at least $25 could be made in person, through the website or on the SmartHub app. Customers choosing the program would be asked to remain on it for 12 months.

RP&L is also investigating the large-user rate for customers using 40 megawatts a day or more. Foster said the city’s current daily electricity demand is about 120 megawatts.

The Indiana Municipal Power Agency has adopted a large-user rate, so if Richmond attracted a customer using that much electricity, RP&L would need to adopt the rate. Such a customer would be served at market rate, would be required to pay for system upgrades necessary to serve the load and might be billed more frequently than monthly.

A large customer would enter a contract with IMPA and RP&L and might be required to guarantee payments if IMPA must enter new contracts to secure the required additional power. 

Foster also shared with board members that the green power program rate they previously approved is now in effect. Information about the voluntary rate for green power is available on the utility website at www.RP-L.com/green-power.

Board actions

• The bid for a 2024 Ford Ranger pickup truck that will be used by the engineering department was awarded to Wetzel Ford for $35,733 after trade. The truck is available immediately.
• Altec was awarded the bid for a 55-foot bucket truck that the line department will use. The bid was $305,677 after trade with an expected delivery time of 76 weeks.
• Foster opened two bids for an extended cab 4×4 truck with a utility body, and those bids were taken under advisement. Wetzel Ford bid $69,492 after trade, and Bloomington Ford bid $62,489.25 after trade. The Bloomington bid required the order be made before May 9.