Regulators Fault High Pay at Indianapolis Utility

INDIANAPOLIS (AP) _ State regulators criticized the pay to top executives of an Indianapolis utility company in a decision to cutback a requested water rate increase.


The Indiana Utility Regulatory Commission says executive compensation at Citizens Energy isn't appropriate for a municipal utility and also faulted poor customer service response. The commission cited reasons for approving a 9 percent rate increase for the company's 300,000 Indianapolis-area customers rather than the nearly 15 percent it requested. 

 
The Indianapolis Star reports company CEO Carey Lykins was paid $2.9 million in 2012. The longtime natural gas company bought the city's water and sewer services in 2010.
 
Citizens spokeswoman Sarah Holsapple tells WISH-TV the rate hike is needed to update aging infrastructure. The company says it has cut executive compensation by an average 27 percent.