Indiana families depend on reliable and affordable utilities, yet most households have no choice in who provides their electricity or heat. Across the country, states are adopting new policies to increase transparency, strengthen consumer protections, and ensure that monopoly utilities operate in the public interest. This page provides a clear overview of those reforms, along with a look at how Indiana compares. It is designed to help residents, community leaders, and policymakers understand the issues shaping utility costs and explore practical solutions that other states are already putting into place.
*sources listed below for reference
Why Utilities Matter to Every Hoosier Household
- Utilities are essential services
- Most Hoosiers have no choice in their provider
- Investor‑owned utilities operate as monopolies
- Other states are adopting reforms to protect consumers
A new national policy guide shows how states can protect residents from rising bills and strengthen accountability. These ideas are already being used in other states and offer a roadmap for keeping energy affordable, reliable, and transparent.
The Problems Identified
• Utilities can use money collected from customers to influence legislation and public opinion
• Rates often include profits that exceed the true cost of capital
• Families have little voice in rate cases where utilities request increases
• Consolidation has created mega utilities with significant political power
• New technologies like solar, microgrids, and electric vehicle charging face barriers
• Hidden fees and late fees hit low income households hardest
• Disconnections during extreme weather put lives at risk
What Other States Are Doing
The guide highlights eleven reforms that states are adopting to protect consumers. These include banning political spending with customer money, limiting excessive profits, improving transparency, supporting public power options, and ensuring fair competition for new transmission projects.
Why This Matters for Indiana
Indiana families have seen steady increases in utility bills. The Indiana Utility Regulatory Commission recently opened an affordability inquiry because of widespread concern about rising costs. Several recent laws have expanded utility authority, including the right of first refusal for transmission projects and the ability to charge customers for construction work in progress.
- Rising utility costs
- Affordability concerns raised by the Indiana Utility Regulatory Commission (IURC)
- Opportunities for Indiana to adopt proven reforms
- Importance of transparency and consumer protection
The reforms in this toolkit offer a set of options that other states are using to rebalance the system and protect consumers. They are not partisan ideas. They are practical tools for ensuring that essential services remain affordable and accountable.
Indiana Utility Reform Matrix
| Reform Area | Status in Indiana | Evidence | Notes |
|---|---|---|---|
| Ban political spending with ratepayer money | Not adopted | No Indiana statute prohibits utilities from using ratepayer funds for PR, trade associations, or influence activities | Indiana utilities are major political contributors according to Citizens Action Coalition |
| Align rate of return with cost of capital | Not adopted | Indiana uses traditional cost of service regulation | No statutory requirement tying return to market cost of capital |
| Intervenor compensation for rate cases | Authorized but limited | Indiana is listed as a state with an authorized but underused or dormant program in the toolkit | Participation barriers remain high |
| Block large utility mergers | No statutory limits | No Indiana law restricting mergers based on size or public interest thresholds | Consolidation continues nationally |
| Prevent monopolization of new technologies | Barriers exist | Indiana law restricts third party solar financing and allows utilities to influence DER policy | Indiana has expanded definitions of “clean energy” to include gas and nuclear, enabling cost recovery for utility owned projects |
| Independent Distribution System Operator (IDSO) | Not adopted | Indiana remains vertically integrated for major IOUs | No legislation creating an IDSO framework |
| Repeal Right of First Refusal laws | Indiana has a ROFR law | HB 1420 grants utilities the right of first refusal for transmission projects, blocking competitive bidding | This is one of the clearest conflicts with the toolkit recommendations |
| Ban junk fees and abusive late fees | Not adopted | No statewide ban on undisclosed utility fees or late fee caps | Late fees contribute to utility profits according to national data |
| Encourage public power and municipalization | Barriers exist | Indiana law does not prohibit municipalization but creates cost barriers | No recent municipalization efforts |
| Performance based regulation | Not adopted | Indiana uses traditional cost of service regulation | No PBR framework in statute |
| Ban abusive disconnections | Limited protections | Indiana has seasonal and medical protections but no broad ban | Shutoff protections vary by utility |
Source Links
Below are sources that support the Indiana‑specific statements in the above matrix.
Indiana Utility Regulatory Commission (IURC)
General information, rate cases, affordability inquiry
🔗 https://www.in.gov/iurc
Indiana Right of First Refusal (ROFR) Law
Utility Dive coverage of Indiana’s ROFR statute
🔗 https://www.utilitydive.com/search/?q=Indiana+Right+of+First+Refusal+%28ROFR%29&selected_facets=&topics=
Federal Court Injunction Blocking Indiana’s ROFR Law (2024)
The Daily Reporter / IBJ coverage
🔗 https://www.greenfieldreporter.com/2024/12/11/judge-blocks-right-of-first-refusal-law
ROFR Laws (Midwest Overview)
Avisen Legal analysis
🔗 https://www.avisenlegal.com/recent-developments-in-state-rofr-law
Tools for Reining in Monopoly Utilities: A Guide for State Lawmakers
American Economic Liberties Project
🔗 https://www.economicliberties.us
🔗 Tools for Reining in Monopoly Utilities: A Guide for State Lawmakers
Disclaimer
Paid for by Citizens for Steele.
This page is provided for informational purposes only. It does not constitute legal advice and does not endorse or oppose any specific utility provider. All information is based on publicly available sources.