An Indiana House bill designed to help electric utility affordability statewide passed the Senate Utilities Committee after hearing multiple amendments and testimony on Thursday.
State Rep. Alana Shonkwiler, R-Noblesville, authored House Bill 1002, which moved to the Senate Appropriations Committee after its Thursday hearing.
“This legislation represents several years of thoughtful work by the General Assembly, Indiana Utility Regulatory Commission and stakeholders across the state, all focused on one central goal: ensuring that Hoosier families have access to reliable, affordable and transparent utility service today and in the future,” Shonkwiler said. “At its core, House Bill 1002 is about balance. It recognizes that Indiana needs strong financials to stable utilities that can invest in infrastructure, modernize the grid and meet growing demand at the same time.”
If passed, the bill would allow residential ratepayers to be placed on budget billing plans on July 1, and utilities will be prohibited from disconnecting low-income customers’ services during periods with extreme heat warnings. House Bill 1002 also ties utility profits to performance metrics, including affordability and service restoration, and utilities will use a three-year rate plan.
The bill introduces “performance-based ratemaking,” Shonkwiler said, and ensures that utilities are rewarded for delivering results that benefit Indiana residents.
During Thursday’s hearing, Shonkwiler proposed two amendments that passed the Senate Utilities Committee. One would refine language to improve “implementation, fairness and clarity,” Shonkwiler said, and would exclude municipal-owned utilities from some provisions related to reporting and assistance programs because municipal utilities are governed locally.
Another amendment would change the eligibility for budget billing, Shonkwiler said, and would exclude municipal-owned utilities from those rules and would only require those eligible for energy assistance to be placed on levelized billing plans. Other customers would opt-in for budget billing.
“I truly believe that levelized billing could help across the state,” she said. “If consumers were to be put on that, it would truly help us with the affordability conversation.”
The committee heard testimony from state energy experts Thursday, with the majority in support of the legislation.
Kerwin Olson, executive director of Citizens Action Coalition, said he appreciates multiple provisions in the bill, including its focus on vulnerable populations.
“(Citizens Action Coalition) opposed the bill as introduced, but the changes have moved us into a position of support,” Olson said. “We ask that as this bill continues to move forward, we have these conversations in future years.”
Robyn Skuya-Boss, chapter director for the Sierra Club Hoosier Chapter, testified in support of the bill Thursday, saying the organization appreciates the protections in place for Hoosier families during high heat days.
“It builds a framework for utility companies to measure and share their progress through performance-based ratemaking, and it ensures that utility companies are investing additional resources to support low income customer bill assistance programs,” Skuya-Boss said. “These provisions represent a positive step towards helping families afford their bills.”
Danielle McGrath, president of the Indiana Energy Association, testified in opposition to House Bill 1002. Her organization supports the bill as a whole, but is opposed to some language, including about affordability and reliability metrics.
McGrath also said Indiana’s rates have performed under the rate of inflation for the past five years.
“There are some cost drivers that are just non-negotiable and outside of our direct control,” McGrath said. “These include the cost of building and maintaining generation to meet resource necessary needs. … We have to comply with federal requirements. … When taking these factors into consideration, investment in electricity pricing can vary greatly depending on the region in which you’re operating, which makes it difficult to establish a baseline.”
The Senate Appropriations Committee will discuss House Bill 1002 at a later date.
