Indiana customers could choose who supplies their power in stages

Covered customers could buy power from a licensed retail power provider. This covers industrial, commercial, and home customers of utilities with assigned service areas and state-approved rates. The customer’s utility would still deliver the electricity over its lines. The choice would start July 1, 2028, for industrial customers; January 1, 2029, for commercial customers; and July 1, 2029, for home customers.

Covered utilities would separate power supply from delivery in their rates and operations and sell or transfer some assets used to make power. The rate changes would cover every customer group served by a covered utility. Utilities could keep assets needed to supply power to customers who do not choose another provider. Sales to outside buyers or transfers to nonutility affiliates would need commission approval and must use fair market value. Utilities would have to complete these steps by June 30, 2028.

The state utility commission would license competing power sellers and continue overseeing utility delivery and power service for customers who do not switch. These rules cover competing power sellers, covered utilities’ delivery service, and power supplied by those utilities to customers who do not choose another provider. The commission would not regulate competing sellers’ power service beyond licensing them. Utilities’ rates for customers who do not switch must be based on market prices and be compared each year with regional averages for comparable service.

The state utility commission would license companies seeking to sell power directly to covered customers. This covers companies seeking to supply power to customers of covered Indiana utilities. Applicants must show they can serve customers, pay a $10,000 initial fee, and provide a bond or similar financial guarantee of at least $500,000. They must use written customer contracts, meet cybersecurity standards, and train a designated representative.

The state utility commission would provide a website for comparing power sellers and set up customers’ billing choices. The website would compare sellers serving a customer’s utility area. Billing choices would cover customers who choose a competing power seller. The website would show contract terms, prices, and power sources. Customers choosing a power seller could receive separate bills or one bill that lists power supply and delivery charges separately. The website would be due March 1, 2028; separate bills by June 30, 2028; and combined bills by June 30, 2029.