IndianaIndiana regulators would weigh household bills in electricity rate cases
When regulated Indiana electricity suppliers seek higher basic rates, regulators would weigh household bills and company spending, hold public hearings, and explain their decisions.
What it does
For rate cases filed or pending after December 31, 2025, regulators would check whether the supplier’s average monthly residential bill would exceed 6% of a sample low-income household’s monthly income.
Regulators would compare shareholder payouts and stock buybacks with money put into the electric system and projects expected to start serving customers soon.
The regulator would hold at least two public hearings in each covered supplier’s service area, even when other hearing rules would not require one.
In its final rate decision, the regulator would report what it found about household bills and supplier spending and explain how those findings shaped its decision.
Argument forChecking bills against a low-income household’s monthly income could help regulators spot an increase that may be hard to afford.
Argument againstA single sample household could miss customers with different incomes or electricity use, leaving some bill pressures less visible.
More detail
The Indiana utility regulator would check whether a requested increase would put the average monthly residential bill above 6% of a sample low-income household’s monthly income. This applies to Indiana electricity suppliers seeking increases in their basic rates. The sample is a four-person household using 1,000 kilowatt-hours monthly, with income at the limit for home energy aid. Regulators must also consider avoiding shifts in costs between customer groups. The rule would apply to rate cases filed or pending after December 31, 2025, and would take effect retroactively on January 1, 2026, if enacted.
Regulators would compare shareholder payouts and stock buybacks with qualifying spending on the supplier’s electric system and upcoming projects. The comparison applies when a regulated Indiana electricity supplier seeks higher basic rates. System spending counts only if customer rates have not already covered it. Upcoming projects must have measurable costs and enter service within a reasonable time after the 12-month period used in the rate case. The past-spending period starts with the first full month after the supplier’s last basic-rate order and ends with the last month of the 12-month period used in the new case.
The Indiana utility regulator would hold at least two public hearings in the supplier’s service area. These hearings apply to covered electricity rate increase cases filed or pending after December 31, 2025. At least one hearing must be in the area’s largest municipality, the municipality with the most customers, or the county with the most customers, as the regulator chooses. The hearings must happen before the regulator issues its final decision.
The regulator would include its findings about household bills and supplier spending in the final rate order and explain how they shaped its decisions. This applies to Indiana electricity suppliers’ basic-rate increase cases filed or pending after December 31, 2025. The explanation belongs in the final rate order.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jan 8First reading: referred to Committee on UtilitiesLatest
- Jan 8Authored by Senator PolIntroduced
Environment & EnergyConsumer Protection