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Request a DemoWith rising electric bills, Indiana residents can voice their opinions to government
Update Sept. 8, 2023: After this article published, state regulators rescheduled a meeting with AES Indiana over storm outages. The new date is listed in the article.
The Gist
Many Indiana residents would see their electrical bills jump under new requests for rate hikes by three utility companies. Residents can provide comments during public hearings or in writing.
What’s happening
Three of the five major providers of electricity are seeking sizable rate increases right now. But utility companies must first gain approval from the Indiana Utility Regulatory Commission (IURC), and the state agency is providing an opportunity for residents to attend in-person hearings or submit written comments.
It’s important to note that electrical bills are routinely fluctuating because of the complicated ways that utility companies set prices and receive approval from state regulators.
Just as one example, a portion of the bill can be adjusted every three months to reflect the most recent prices for fuel. So it’s not as if the price that customers pay on their electrical bill is fixed, like a car payment. The prices are changing seemingly constantly.
But there are moments where the utility companies seek relatively large price increases. That’s happening right now with three of the five major providers of electricity in Indiana:
- AES Indiana, which services about 500,000 people in the Indianapolis area
- Indiana Michigan Power, which services about 476,000 customers in mostly northeastern Indiana
- CenterPoint Energy, which services about 150,000 people in southwest Indiana
A fourth utility company — NIPSCO — recently received state approval for higher prices for about 483,000 customers in northern Indiana.
Why it matters
Indiana residents once had access to some of the cheapest electricity in the country. Times have changed, though.
The average price of electricity in Indiana jumped nearly 35% between 2012 and 2022, according to a State Affairs analysis of federal and state data. In that same time, the national average grew by just 19%.
Average residential bills in Indiana closely tracked the rise. Customers who spoke at a public hearing in August for AES Indiana’s request described how challenging it is for their incomes to keep up with the growing electrical bills.
“A neighbor just down the road from me had to go to the pantry so he could pay his electric bill,” said Jessica Saenz, president of West Indianapolis Neighborhood Congress. “We’re really counting on the people in charge to look out for us … lives are on the line.”
Indiana was ranked 31st in electrical prices last year — trailing nearby states Kentucky, Ohio and Tennessee.
The cost of electricity among Indiana’s five investor-owned electric utilities is expected to continue to rise through 2025 by about 30%, according to the most recent state forecasts.
More about the price increase requests
To estimate the impacts on residents' bills, consumer advocates and utility companies tend to use a monthly bill of 1,000 kilowatt hours (kWh) as a base example.
Customers can find how much electricity they use by reviewing a monthly bill.
But under CenterPoint Energy’s proposal, homes using 1,000 kWh each month would see increases of:
- $2.55 per month in 2024
- $5.33 per month in 2025
- $8.34 per month in 2026
- $11.81 per month in 2027
- $14.68 per month in 2028
That’s according to the Indiana Office of Utility Consumer Counselor (OUCC), a state agency that represents customers before state regulator proceedings.
CenterPoint Energy says the money would pay for the replacements of transmission lines, substations and wooden poles, as well as additional security. It’s part of a new, $454 million infrastructure plan.
AES Indiana, meanwhile, is seeking to raise $134 million because of inflation, as well as to pay for infrastructure projects and add new ways for customers to pay their bills.
Residents using 1,000 kWh would see an increase of $17.49, according to the OUCC.
The Citizens Action Coalition, a consumer watchdog group, has published detailed information about the AES rate increase. AES' website also contains more information, including a calculator showing how the rate increase would affect each customer and a list of town halls that the utility company will hold. (The town halls are different from the public hearings.)
As for Indiana Michigan Power, the utility is seeking to boost its revenues by about $116 million, according to the OUCC. A monthly bill using 1,000 kWh would rise by $14.83 on average, the OUCC said.
The utility company aims to make infrastructure improvements, providing new payment plans and online access to customers, and study the future of the Cook Nuclear Plant that is located in Michigan but provides power to Indiana residents.
Finally, NIPSCO recently received state approval to raise prices. More about that process can be found on the websites for the OUCC, Citizen Action Coalition and NIPSCO.
How to provide comments
For customers of CenterPoint Energy, the regulatory commission will hold a public hearing at 6 p.m. Sept. 13 at Old National Events Plaza, 715 Locust Street in Evansville.
And for AES Indiana, the IURC already held one hearing last month. The next is set for 6 p.m. Oct. 2 at New Augusta Public Academy North, 6450 Rodebaugh Road in Indianapolis.
Separately, state regulators are requiring AES Indiana to provide information as part of a potential investigation into the utility company’s response to storm outages in late June and early July. That meeting on Oct. 2 will be live-streamed.
The IURC has not yet announced a public hearing for Indiana Michigan Power’s request.
For residents who can’t attend in-person hearings, the Indiana Office of Utility Consumer Counselor will collect written comments on its website, at [email protected] or by mail at:
Public Comments, Indiana Office of Utility Consumer Counselor
115 W. Washington Street, Suite 1500 South
Indianapolis, IN 46204
Residents should include their names, city and ZIP code, as well as the specific cause number:
- CenterPoint Energy: 45894 (Deadline for written comments is Sept. 15)
- AES Indiana: 45911 (Deadline is Oct. 5)
- Indiana Michigan Power: 45933 (Deadline is Nov. 8)
What’s next
It’s expected that the IURC will rule on CenterPoint’s request in December, and on the requests from AES Indiana and Indiana Michigan Power in spring 2024.
Contact Ryan Martin on Twitter, Facebook, Instagram, LinkedIn, or at [email protected].
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Header image: Three of the five major providers of electricity in Indiana are seeking sizable rate increases right now. (Credit: Ryan Martin)
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How McCormick, Braun view abortion, taxes and other key issues
A Democrat-turned-Republican and Republican-turned-Democrat will soon face off in the race to become Indiana’s next governor.
Sen. Mike Braun, who voted as a Democrat prior to 2012, captured the Republican nomination in Tuesday’s primary. Jennifer McCormick, formerly a Republican Superintendent of Public Instruction, will represent the Democrats.
Voters will decide the state’s next chief executive in November.
A State Affairs analysis of the candidates’ campaign platforms and public statements found key differences — and a few similarities — in their planned approaches to a variety of issues impacting Hoosier voters.
Here is how they match up.
Abortion
Braun: As a senator, Braun has long supported abortion restrictions.
In 2020, he called for the Supreme Court to re-examine Roe v. Wade.
In 2023, he proposed federal legislation that would have required parental notification before any unemancipated minor could seek an abortion. He said at the time: “Hoosiers put their trust in me to stand up for the unborn, and that’s what I’ve been proud to do every day in the Senate.”
He has since signaled support for the state’s abortion ban. His platform reads: “State lawmakers must work to ensure the gains we have made to protect life are secured and strengthened.”
McCormick: In a Tuesday interview with State Affairs, McCormick said her candidacy represented a referendum on reproductive rights.
“I’m going to fight to restore those rights under any authority I can, working in a bipartisan fashion, using our committees, board and our agencies. I also know, too, what everybody’s fear is: that they’re [Republicans] not going to restore those rights and will take [restrictions] further.”
From her platform: “Indiana’s Republican-led extreme abortion ban has taken away the right of women to make deeply personal decisions regarding their own health care.”
Marijuana
Braun: At a March 26 Republican primary debate, Braun suggested an openness to legalizing medicinal marijuana.
“It’s gonna hit all of us. I’m gonna listen to law enforcement — they have to put up with the brunt of it,” he said. “Medical marijuana is where I think the case is best made that maybe something needs to change. But I’ll take my cue from law enforcement there as well. … I hear a lot of input where [medical marijuana is] helpful, and I think that you need to listen and see what makes sense.”
McCormick: The Democrat’s platform also addresses medical marijuana legalization, while speculating on possible recreational use.
“We will fight for the legalization of medical marijuana as a source of state revenue established on a well-regulated marketplace and monitored by a Cannabis Task Force in order to study the issues, opportunities and potential obstructions associated with recreational marijuana legalization.”
McCormick said she would also support expunging low-level marijuana-related convictions.
Taxes
Braun: At a March 19 National Federation of Independent Business forum, Braun said the state’s property tax system “went out of whack because it couldn’t respond to inflation like we’ve never seen before.”
“The way you finance any lower taxes would be to bank on the government being run more efficiently,” he said.
His platform also calls for government spending cuts to finance lower taxes: “Reducing the size of government is the key to cutting taxes, and Mike Braun will work through every state agency to find ways to save money while delivering high-quality services to taxpayers.”
McCormick: McCormick also spoke about taxes at the March 19 forum.
“I agree with a revamp of our taxing system,” she said. “But also it’s about not just how we’re getting our revenue, it’s about our expenditures. Yes, we need to fix our gas tax. Yes, we need to look at the income tax. But here’s the thing: There are hidden taxes we’re not having a conversation about.”
Her platform also references the possibility of combining state agencies as a way to save money.
Education
Braun: In his platform, Braun supports broadening school choice and parental rights.
“As a former school board member, Mike Braun knows parents are the primary stakeholders in their children’s education and every family, regardless of income or zip code, should be able to enroll in a school of their choice and pursue a curriculum that prepares them for a career, college or the military,” the platform reads.
Braun also pledged to ensure critical race theory and discussions about gender are banned in public schools.
McCormick: Education is one of McCormick’s primary issues, according to her platform.
She calls for the elimination of statewide testing, increased early childhood reading and child care options and a minimum base salary of $60,000 for all K-12 teachers.
McCormick also addresses the state’s school choice movement.
“We will call for a pause in the expansion of school privatization efforts while requiring fiscal and academic accountability and transparency for all of Indiana schools that receive public tax dollars,” her platform reads.
U.S.-Mexico border
Braun: Braun’s television ads have touched on border security, and his platform calls for increased focus on the area.
“Joe Biden and the left have created a humanitarian and national security crisis on our southern border,” the platform reads. “As governor, Mike will continue to support and enact the America First policies that were working. Otherwise, every town will become a border town.”
McCormick: McCormick’s border-related plans are more focused on facilitating legal immigration.
“We will work with local, state and federal officials in supporting an immigrant system that creates a safe, timely, orderly and humane pathway for those seeking legal immigration while keeping our communities and those responsible for border security safe,” her platform reads.
Contact Rory Appleton on X at @roryehappleton or email him at [email protected].
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