Indiana Launches Utility Rate Review Under New State Law

The Indiana Utility Regulatory Commission is reviewing utility risks, profits, and charges to reduce electricity costs for consumers as the state transitions to a new regulatory framework. This shift follows the approval of House Enrolled Act 1002 by Governor Mike Braun and state lawmakers, which establishes a multi-year rate-making platform. Under this system, base rates and increases are scheduled over three-year periods, with utility earnings linked to service restoration performance and affordability.

Five investor-owned monopolies—AES Indiana, CenterPoint Energy Indiana South, Duke Energy Indiana, Indiana Michigan Power Co., and Northern Indiana Public Service Co.—operate under this oversight. Duke Energy Indiana is required to be the first to petition for rates under the new system by mid-December. Regulators are also reconsidering a $71 million base rate increase for AES Indiana.

The commission has launched investigations into how capital and expense trackers will integrate into the new framework. Additionally, the commission requested that the General Assembly consider repealing the 7% sales tax on utility bills, a move that would result in an annual cost of $615 million to the state.