By Leslie Bonilla Muniz
Indiana Capital Chronicle
Indiana utility customer advocacy groups on Tuesday released a slate of ambitious reforms they say would promote affordability for struggling residential and small-business ratepayers.
The document calls for policies benefiting low-income customers, like discounts and a summertime shutoff ban, along with changes to state oversight and regulations.
“Hoosier families are stretched thin, and they need relief now from monopoly utilities who’ve pushed policies for years that led to this crisis,” said Megan Robertson, the executive director of Indiana Conservation Voters, a clean environment and energy group.
“This plan gives state leaders a clear, practical path to lower bills that will protect Hoosiers most in need and build a more affordable, reliable energy future for every community in our state,” she said.
About 87% of Hoosiers were at least “somewhat” concerned about rising energy costs — with 59% “very” concerned — in a Bellwether Research poll conducted for Indiana Conservation Voters.
The survey of 800 registered voters statewide was performed Oct. 29-30 and Nov. 1, over call and text, and carried an error margin of plus or minus 3.5%.
Robertson’s organization was joined by Citizens Action Coalition, a utility ratepayer watchdog.
“For too long, Hoosiers have been footing the bill for decisions they didn’t make and policies they didn’t ask for,” said Kerwin Olson, the coalition’s executive director.
“Indiana’s regulatory system should be built to protect consumers, but that goal can only be achieved if lawmakers give regulators the tools and authority it needs,” Olson said. “The solutions have been ready for years. The need is now incredibly urgent, and we hope lawmakers will do their part.”
The Indiana Energy Association, which represents the state’s largest electric and natural gas utilities, said the industry is “listening closely to customers, stakeholders, policymakers, and state leaders” as regular legislative work approaches.
“We recognize that many policy proposals will be considered this legislative session, and we share the concern for how the current landscape is affecting the people we serve,” association President Danielle McGrath said in a statement to the Capital Chronicle. “We remain committed to keeping energy reliable and affordable for our customers.”
She noted utilities already have some options for cash-strapped consumers.
“Beyond providing power, the industry plays a critical role in supporting our customers and communities. We offer a range of assistance and affordability tools that help manage costs and consumption, such as bill payment assistance, notifications and alerts, and flexible payment options,” McGrath said.
She added that Indiana’s residential energy prices are below the U.S. average and rank the lowest in the Earth North Central region — Indiana, Wisconsin, Illinois, Michigan and Ohio — according to the federal Energy Information Administration.
The plan, however, indicated residents are still hard-hit.
“Hoosiers are paying some of the highest energy bills in the Midwest,” it read. “… Families, seniors, renters, small business owners — everyone is feeling the pain.”
White paper’s suggestions
Recommendations in the “Help Hoosiers Now Ratepayer Relief Plan” are ordered by “how quickly they will affect Hoosiers,” according to the document.
It centers on a pair of policies targeting low-income households.
Under the first, lawmakers would establish a discount rate for each of the state’s investor-owned utility companies, applicable to ratepayers who qualify as low-income. The Indiana Utility Regulatory Commission would set the rate, which the plan suggests could be based on a 3% or 4% income burden threshold. The concept is similar to the 30% of income standard often used for housing affordability.
The second would prohibit shutoffs during high summer temperatures for participants in Indiana’s low-income home energy assistance program. State law already bans shutoffs for such households during the winter, from Dec. 1 through March 15, according to the plan.
The organizations also aim to shake up the regulatory space. They recommended reforming IURC’s jurisdiction in mergers or acquisitions involving utilities or their parent firms.
BlackRock-owned Global Infrastructure Partners is close to purchasing AES Indiana, one of the “big five” investor-owned electric utility companies. Despite the potentially major implications, the state has no say, Axios Indianapolis reported.
Under other suggestions, lawmakers would require IURC to cap utility profit rates at the cost of capital and ban the commission from letting utilities include “political influence campaigns” in customer bills.
That would include activities related to lobbying, charitable giving, trade association expenses, litigation, investor relations and more. Utilities would file annual reports related to those activities, and the IURC would make them public.
Another proposal includes repealing or reducing cost trackers. Utilities can currently use them to adjust rates for certain expenses and recover those costs from customers on an ongoing basis.
Shrinking or getting rid of some trackers would “provide more stability in monthly bills and require utilities to go through the rate case process to pass along these costs,” the plan reads.
Other recommendations are longer-term endeavors.
That includes a revival of distributed energy generation policies, review of the state’s approach to controversial data centers and a requirement that big industrial energy-users participate in utility-led energy efficiency programs. They’d also help pay for the initiatives.
The plan additionally envisions a legislative confirmation process for IURC commissioners. The five members are appointed by the governor without lawmakers’ involvement.
And it delves into a contentious debate over utility-scale infrastructure siting. Indiana doesn’t have standards statewide, so it’s up to each of the 92 counties. Previous legislative attempts have failed amid pushback from local officials and residents.
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The Indiana Capital Chronicle is an independent, nonprofit news organization dedicated to giving Hoosiers a comprehensive look inside state government, policy and elections. The site combines daily coverage with in-depth scrutiny, political awareness and insightful commentary.
