STATEHOUSE — A bill sponsored by State Senator Eric Koch (R-Bedford) that will reform utility ratemaking was ceremonially signed into law by Gov. Mike Braun today.
House Enrolled Act 1002 creates a Performance-Based Ratemaking framework that ties utilities’ yearly revenue and profit to their ability to successfully meet the needs of residential consumers. This replaces Cost of Service Ratemaking, which has been used since Indiana began regulating utilities in 1913. Utilities will be put on a multi-year rate plan that includes performance incentives and disincentives in target areas such as service restoration, reliability, and affordability.
HEA 1002 will also:
- Make it easier for low-income ratepayers to be on fixed monthly payments and levelized billing plans;
- Increase grace periods on termination of services; and
- Protect Hoosiers who struggle to pay their bills during harsh seasons.
“Utility affordability is one of the biggest concerns facing Hoosiers,” Koch said. “HEA 1002 will help Hoosiers better afford their monthly utility bills by putting protections in place for ratepayers and give utility companies the incentive to help their customers do that.”
Koch is the chairman of the Senate Committee on Utilities, ranking member of the Senate committees on Commerce and Technology and Judiciary, and a member of the Senate Committee on Corrections and Criminal Law. He represents Senate District 44, which includes Brown, Jackson, Lawrence, and Orange counties, and a portion of Monroe County.
