Gov. Mike Braun continued his campaign against utility rates in a press conference Monday, reiterating the steps his administration has taken to make energy more affordable.
Braun’s comments come amid a turbulent time in Indiana’s energy sector as data center projects divide communities, regulators prepare to convene an investigative inquiry on electric rates and a consortium led by BlackRock-owned Global Infrastructure Partners announces it will purchase AES Indiana in a $33 billion deal.
Driven by a spike in demand for electricity, a recent study by consumer advocacy group Citizens Action Coalition found the average Hoosier paid 17.5% more on their electric bills in July 2025 than in July 2024.
On Monday, Braun blamed much of that increase to inflation under President Joe Biden’s administration, but said the government hasn’t done enough to help consumers.
“I think it’s been an imbalanced relationship between generators and ratepayers and now there’s a new sheriff in town,” Braun said.
Braun again emphasized action he’s taken in the past six months to try and bring rates under control, including supporting legislation to reform how companies set utility rates, naming a new commissioner of the Office of the Utility Counselor and appointing three new members to the Indiana Utility Regulatory Commission, or IURC.
Braun also addressed “fatigue” when it comes to new data center projects around the state, saying developers need to pay for the full cost of their impact to the electric grid, at a minimum.
“If you want to be a data center in this state, you’re going to prove that if you come here, you’re going to lower rates by putting more electrons onto the grid,” Braun said.
Lawmakers passed a measure in 2025 which requires data centers to pay for 80% of project costs attributable to their increased demand for energy. Braun’s call for data centers to pay the full costs of increased grid capacity is not in state law, but he said projects that don’t pay their full share won’t receive state tax credits or cooperation.
Democrats respond
Following Braun’s press conference, one local Democrat insisted the current utility rates are the result of Republican majorities passing laws favorable to the state’s five large investor-owned utilities.
Rep. Carey Hamilton, D-Indianapolis, told reporters the IURC’s hands are tied when it comes to energy rates, as utility providers often take advantage of “trackers” that allow them to recover much of the costs of new projects before a formal request before the IURC.
“I don’t believe in promises,” Hamilton said, “I believe in laws.”
Republicans ushered House Enrolled Act 1002 through the General Assembly this past session. The law changes Indiana from a cost-of-service model to performance-based ratemaking, which is designed to reward utilities if they keep costs down.
Most Democrats voted for the bill, though Hamilton said it could have gone further to address affordability concerns.
Democrats offered multiple amendments to HEA 1002 before passing it out of the house, including a measure that would give the IURC oversight over private equity firms purchasing utility companies.
The amendment was voted down by Republicans.
Last week, Braun briefly addressed reports that AES Indiana’s parent company, Virginia-based AES Corp., will agree to sell to a BlackRock-backed consortium.
“It doesn’t make any difference if it’s BlackRock or anyone else, they’re playing by the same rules,” Braun said at a March 2 press conference.
The following day, Indiana State Treasurer Daniel Elliott — whose office does not have a regulatory role in utilities — released a statement critical of the deal, saying he was “worried” about the impact the deal would have on Hoosiers and calling for thorough, transparent regulatory vetting.
Will Indiana suspend its gas tax?
While debates about energy rates continue, another concern is emerging as gas prices skyrocket due to U.S. military actions in the Middle East.
Oil prices jumped to over $110 a barrel on Monday, the highest point since 2022, and AAA reports the average price for gas in Indiana as of Monday morning was $3.48 per gallon.
Braun said he supports President Donald Trump’s military strikes against Iran and said it’s too soon to judge the long-term impact.
When asked if he is considering suspending the state’s sales tax on gas due to rising prices — a move Hamilton told reporters state Democrats would support — Braun didn’t reject the idea, but said he’s hopeful the situation in Iran will be under control quickly.
“If not, everybody will have to use the tools in their own toolchest to make sure you navigate it,” Braun said. “I’m not saying specifically what it would be. Don’t know what the [Trump] administration will do, but that’s the general framework of thinking.”
Indiana’s gas tax rate is currently set at 36 cents a gallon, per the Indiana Department of Revenue. Democrats pushed to suspend the gas tax in 2022 when prices rose in response to Russia’s invasion of Ukraine, but then-Gov. Eric Holcomb did not take action.