INDIANAPOLIS — The Indiana Utility Regulatory Commission is taking action on energy affordability after hearing from Hoosiers at listening sessions held across the state earlier this year.
IURC Chairman Anthony Swinger said the measures focus on implementing House Enrolled Act 1002, the 2026 energy affordability bill.
“Hundreds of Hoosiers have spoken out, both at the listening sessions and through written comments they have submitted to the Commission regarding energy affordability,” Swinger said. “Based on that input, we are focusing on practical solutions for Indiana ratepayers as outlined in the report we are releasing today.”
The key action items include:
Return on Equity Investigation: A formal review of the authorized profit rates utilities can earn under the new multi-year rate plans created by HEA 1002.
What that means: The commission is making sure utility companies earn a fair profit, so customers aren't overpaying.
Tracker Investigation: An examination of how periodic rate adjustments, known as trackers, will function under the new regulatory framework. Trackers allow utilities to recover certain costs between major rate cases.
What that means: The commission will review fees that can be added to your bill between major rate reviews.
Performance Incentive Mechanisms: A stakeholder process to develop financial rewards and penalties tied to how well utilities meet goals around reliability, affordability, and other state-mandated standards.
What that means: Utilities can earn bonuses or face penalties based on how well they serve customers.
TDSIC Guidance: New standards clarifying how utilities justify charging customers for infrastructure improvement projects, a practice in place for more than a decade.
What that means: Clearer rules on how utility infrastructure spending gets approved, so customers know what they're paying for.
The full IURC Energy Affordability Report is available here.
Reaction to the report poured in from lawmakers, advocates and state leaders. Here is what they had to say:
Kerwin Olson, Executive Director, Citizens Action Coalition, consumer watchdog for utility ratepayers since 1974:
“We applaud the IURC for taking a deep dive into issues that we believe are key drivers that led to the affordability crisis facing Hoosier ratepayers today. We have long been critical of tracking mechanisms which allow monopolies to increase bills outside of a rate case and which reduce the discretion and flexibility of regulators. There’s no question that the returns on equity of the Indiana utilities are unjustly high and disproportionate to the risk that investors face. Profit should be the reward for risk—it’s the ratepayers assuming the risk thanks to the tracking mechanisms authorized by the Indiana General Assembly. Ratepayers should be rewarded, not forced to pay inflated and unfair ROEs. We are hopeful that these investigations will lead to meaningful policy movement at the legislature and more affordable bills for consumers.”
State Rep. Alex Burton (D-Evansville), a member of the House Committee on Utilities, Energy and Telecommunications:
“Hoosier households cannot wait for another legislative session holding our breath and keep our fingers crossed for potential actions. There needs to be swift, yet responsible actions that directly relieve wallets and pocketbooks now. The Braun administration says that it wants to lower utility costs. It’s time for the rubber to meet the road.
“We’re in a moment that must be met with more than words, plans or promises. For nearly a year, Hoosiers have been consistently vocal in advocating for energy relief, but very little has been done to put ratepayers first. This time around, Hoosiers are refusing to be lullabied and distracted away from addressing our energy cost burden. This inequity has festered long enough.
“My aim and focus are on delivering responsible policies for Hoosiers that directly lead to more money in wallets and pocketbooks. I was encouraged to see some of my proposals and suggestions included on the list of action items. We must get there and I will continue to do all I can to improve outcomes for households. Specifically, Southwest Indiana has been overburdened for more than a decade. This remains an urgent matter. Hoosiers are ready for the state to deliver affordable energy to Hoosier households, maintain a strong (and reliable) grid and responsibly bring all forms of energy online.”
Governor Mike Braun:
“Affordability for Hoosiers is my top priority, and my appointees on the IURC have been tasked with making decisions that are fair for Hoosier families. Today’s announced action steps are a great step to making energy bills more affordable. Hoosier families work hard to make every dollar count, and utility companies must start doing the same.”
