Hoosiers hoping for immediate relief from soaring electric and natural gas bills won't be getting any help this year from the Indiana General Assembly.
The Republican-controlled Legislature gave final approval Thursday to legislation that may potentially slow the growth of future utility rate increases by beginning the process of implementing performance-based rate setting for Indiana electricity suppliers.
But the House and Senate repeatedly rejected outright, or scuttled using procedural tactics, nearly two dozen Democratic-sponsored proposals to actually reduce what Hoosiers currently are paying for electricity and natural gas use, such as exempting residential utility bills from the state's 7% sales tax.
"We cannot say as a body that we are fighting for utility affordability and then pass up on common-sense opportunities to do so. Empty words do nothing for the family deciding between groceries and utility bills, the chronically ill Hoosier who has to choose between health care and air conditioning, or the seniors on fixed incomes who pay their bills without fail yet still see them climb every month," said state Sen. Andrea Hunley, D-Indianapolis.
House Enrolled Act 1002, sponsored by state Rep. Alaina Shonkwiler, R-Noblesville, primarily directs the governor-appointed Indiana Utility Regulatory Commission to start setting electric rates based on a utility's performance, rather than guaranteeing a certain rate of return on its investments.
Specifically, the IURC would have to consider how an Indiana electricity supplier measures up against its peers on measures of reliability, affordability, resiliency, stability and environmental sustainability, as part of deciding whether its base rate should be allowed to increase or decrease over a number of years.
"Hoosiers deserve reliable and affordable utilities," Shonkwiler said. "House Enrolled Act 1002 updates our regulatory framework for ratemaking, holds utilities accountable for the outcomes Hoosiers want and gives residents options and tools for managing payments."
To that end, some Indiana electric customers will be forced onto a "levelized" billing plan July 1, where a customer pays the same amount each month for electric service except in the two "true-up" months where they'll be responsible for making up (or credited) the difference between what they've paid and their actual usage — similar to NIPSCO's "Budget Plan" billing.
The proposal also establishes a partial electric and natural gas disconnection moratorium during extreme summer heat, as well as a mandate that electric utilities offer a payment assistance program to low-income customers who also qualify for federal Low Income Home Energy Assistance, such as NIPSCO's CARE program.
"Our goal is to work with utilities to address needed improvements and continue upholding our five pillars of energy: reliability, resilience, stability, affordability and environmental sustainability," Shonkwiler said.
The measure was approved 94-2 by the House and 46-0 in the Senate. It next goes to Republican Gov. Mike Braun to be signed into law.
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