INDIANAPOLIS — The cost of utilities continues to be a concern for Hoosiers, especially during this stretch of frigid cold.
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When temperatures drop, many residents turn their thermostats up a few degrees, but not everyone can afford to do that. A bill moving through the Indiana Statehouse aims to help low-income households struggling to pay their utility bills.
"It requires that electric utilities provide assistance programs no later than July 1, 2026, to low-income households, which is extremely important,” said Kerwin Olson, executive director of Citizens Action Coalition.
House Bill 1002 is a priority measure for Gov. Mike Braun and House Republicans. The proposed assistance program would be available for households that qualify for the Low Income Heating and Energy Assistance Program, with each utility company required to dedicate roughly $1.5 million annually.
The measure stipulates that electricity suppliers must fund their program at an amount equal to at least 0.2% of jurisdictional revenues from residential customers, plus any contributions from governmental agencies, other programs or third parties.
"We are getting multiple phone calls a day saying, 'We can't afford our light bill. We can't afford our gas bill.' So just an increase in numbers and this new way of doing lights is hurting our seniors,” said Joyce Beaven, senior service director for Catholic Charities in Indianapolis.
Beaven, who has worked for Catholic Charities for 13 years, said the organization has seen a 200% increase in seniors needing utility assistance. She said many income-based apartment complexes have switched to shared lighting plans, triggering steep bill increases for low-income seniors.
“We are seeing 500 and 600 dollars bills for one-bedroom apartments,” Beaven said.
The bill could ease some of the burden for nonprofits, while also requiring publicly traded utility companies to file quarterly reports on disconnection numbers, a step Citizens Action Coalition believes is crucial for effective policy-making.
"Some utility companies, we are seeing one in two customers receive disconnect notices on a monthly basis,” Olson said. “That sort of screams we've got an issue. But we need that data over a long period of time so we can examine trends as they arise and assure that utility service is, in fact, affordable.”
Olson added that some utilities have shared this data voluntarily since the COVID-19 pandemic, but making it a state mandate would ensure accuracy.
Another part of the bill would apply to all customers, automatically enrolling them in budget billing, a payment plan that averages bills over the year. Critics note that at the end of the billing cycle, customers sometimes still owe a large sum.
The legislation would require customers to opt out if they do not want to participate. None of the previous would apply to Co-op utilities or Rural Electric Membership Cooperatives. Only utilities that are regulated by the IURC.
House Bill 1002 has passed the House and now heads to the Senate for consideration.
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