In response to growing customer outrage over high energy bills, the Indiana Utility Regulatory Commission announced Wednesday that it will conduct an investigation into affordability for the state’s “big five” investor-owned utility companies next month.
It’s an uncharacteristic move for the typically restrained IURC to take, new Chair Andy Zay admitted during a news conference at the agency’s headquarters in downtown Indianapolis.
“We’re a regulatory agency. … It’s not typically our style as a commission to get involved in these issues,” Zay said. He cited an influx of complaints from customers and leaders.
The IURC is charged with ensuring that utilities provide safe, reliable service at just and reasonable rates. By law, it serves as an impartial arbiter between customers and providers.
“That balance feels dramatically out of whack right now for many, many Hoosiers and today is the beginning of a process that we are labeling an investigative inquiry,” Zay said. “… We’re asking our five investor-owned utilities that we regulate on a week-in, week-out basis … to come to this room and have an open dialog about affordability.”
Those include AES Indiana, CenterPoint Energy Indiana, Duke Energy Indiana, Indiana Michigan Power Company, and the Northern Indiana Public Service Company.
“We’re going to ask questions on the rates, on the transparency of billing, and also on reflection, to understand better what we have done right and what we have done wrong, as a commission, to set a tone for what will come next,” Zay continued.
In a statement, Indiana Energy Association President Danielle McGrath said that the energy industry is “committed to serving our customers reliably and affordably.” The trade association represents the state’s investor-owned electric utilities and local distribution gas companies.
“The system investments driving today’s costs are the backbone of reliability ensuring power is available when families and businesses need it most,” McGrath said. “We will be prepared to address the cost of reliability before the Commission, including the underlying drivers and the steps being taken to control expenses.”
Zay stopped short of confirming that all five companies will participate, saying only, “I think they’ll be here” and “I believe they will be here.” All told the Capital Chronicle they would.
In a statement, CenterPoint said it “appreciates the Commission’s continued focus on energy affordability for all Hoosiers” and highlighted its own efforts: a commitment to keep rates stable for two years, offset an increase that took effect in the fall, invest in consumer efficiency and cost-saving programs, and more.
I&M spokeswoman Stephanny Smith said I&M “know(s) Hoosiers are worried about rising energy costs,” which is why the company announced Tuesday that it will file to reduce its base rates.
The inquiry is scheduled for 9:45 a.m. to 4 p.m. on March 24, in room 222 of the PNC Center at 101 W. Washington St. in Indianapolis.
Based on the results, the IURC could take informal or formal, docketed actions. The latter typically have longer timelines. Anything formal must occur at the agency’s weekly public meeting, where commissioners vote on orders, according to a news release.
New head regulator also plans constituent tour
Zay, a former state lawmaker, just started at the commission in January.
Gov. Mike Braun appointed him and two other commissioners, all “aligned” with his “commitment to making energy affordable for families and businesses.” It was a near remake of the five-member body, soon after his selection of a new customer advocate.
“From the beginning, my administration has been focused on kitchen table issues like affordability. That is why I appointed a strong consumer advocate in the Office of the Utility Consumer Counselor and appointed IURC commissioners focused on ratepayers,” Braun said in a Wednesday statement.
“This is exactly what I expected to see from my new appointments to the IURC and I expect Chairman Zay to keep the focus on addressing affordability, transparency, and reliability for ratepayers while holding investor owned utilities accountable,” he said.
Zay also announced he’ll embark on a statewide tour “to hear directly from the ratepayers,” prompting several lawmakers in attendance to personally invite him to their communities.
“Honestly, sometimes my constituents feel like the utilities have them over a barrel, and it’s about time that we took a deep dive,” said Rep. Jim Pressel, R-Rolling Prairie. Last week he called on the agency to review NIPSCO’s rates, and applauded the announcement.
Some lawmakers said the inquiry could inform their work next year.
“We have a longer runway before the next legislative session to not only hear feedback from Hoosiers, but then have the conversations as legislators … (and) deliver results,” said Rep. Alex Burton, D-Evansville.
“You’ll see additional legislation happening next session,” said Rep. Alaina Shonkwiler, R-Noblesville.
She authored a massive House Republican priority proposal intended to level out sudden fluctuations in utility bills. House Bill 1002 cleared both chambers and awaits Braun’s signature.
Update: This article has been updates with comments from the Indiana Energy Association.
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