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Bipartisan-backed legislation that attempts to curb the impact of climbing electric utility costs on Indiana residents moved forward Tuesday as state lawmakers wrestle with addressing affordability issues.
House Bill 1002 would require companies to make billing consistent and predictable for customers. Another provision would transition utility companies to three-year rate plans subject to state approval.
The bill's author, Rep. Alaina Shonkwiler (R-Noblesville), said the goal of the legislation is “modernizing” how Indiana regulates electric utilities to benefit residents.
"The multi-year rate planning provides greater rate stability and predictability for customers, improved regulatory efficiency … and continued oversight and flexibility, including periodic reviews, public input," Shonkwiler said.
After discussing and then voting on several amendments, the House utilities committee approved the bill unanimously. It joins other Statehouse efforts to address energy costs, including a bill on nuclear power regulations.
HB 1002 would also create a summer disconnection moratorium, which would prohibit companies from shutting off service during periods of extreme heat. But lawmakers disagree over whether the final rule should be a time-based period as state law mandates in winter, or whether it should be tied to National Weather Service-declared heat emergencies.
Utility companies would be required to submit regular reports to the Indiana Office of the Utility Consumer Counselor under the bill. It would also reign in the ability of the Indiana Utility Regulatory Commission to freeze rates by calling an electric emergency. Instead, it allows the agency to request an emergency declaration from the governor.
In his State of the State address last week, Gov. Mike Braun said utility rates are too high and signaled support for Shonkwiler’s legislation.
“Affordability is why I support Rep. Alaina Shonkwiler’s bill to hold investor-owned utilities accountable to provide affordable energy before they can increase their profit margin,” Braun said.
Rep. Matt Pierce (D-Bloomington) appreciated a Republican amendment that addressed several concerns from Democrats, some of which he said could have prevented his caucus from voting on the bill.
“You’ll see from our amendments, we think that there are some other things that can be done to provide even more relief,” Pierce said Tuesday.
Some of their proposals failed, including amendments to prevent outstanding utility bills from impacting a person’s credit score, and to prohibit companies from charging disconnect and reconnect fees.
Committee chair Rep. Edmond Soliday (R-Valparaiso) directed two Democrats to work with Indiana Energy Association President Danielle McGrath on amendments that would require companies to share more information with customers on their bills. Those included a notice to customers when they hit 50% of their usage from the previous month and a provision for companies to include both the amount a customer owes for the month and the total outstanding balance on their bill.
The full House will take it up next.
Contact WFYI data journalist Zak Cassel at zcassel@wfyi.org.
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