INDIANAPOLIS – Consumer groups are sounding the alarm about attempts by electric utilities in Indiana to increase their fixed monthly charge.

It's the base rate customers pay even before using any electricity.

NIPSCO's request to regulators would increase the base rate from $11 to $20 a month for residential customers. And a pending IPL case calls for a more than 50 percent hike.

John Howat, senior energy analyst with the National Consumer Law Center, says this shifts the burden of paying for the electric system to those who use it less.

"No matter how little you use or how small your house or apartment, you end up paying a similar amount as those living in a mansion or a larger business,” he points out. “So, there's a real fairness issue here."

According to the utilities, the increases are needed because they're selling less power as a result of increased energy efficiency and the use of renewable energy.

Opponents argue customers should not be penalized for being more energy efficient or for generating their own power through alternative sources.

Kerwin Olson, executive director of the Citizens Action Coalition, explains Indiana is a surplus state with plenty of electric capacity, and yet utilities are claiming the increased cost would ensure reliability.

"It's really scare tactics designed to scare the public into thinking that if rates are not adjusted upward, that somehow the lights are going to go out across the state of Indiana,” he states. “Nothing could be further from the truth."

Electric rates would also increase 11 percent under NIPSCO's request, with the average customer paying $17 more a month.

Howat calls this questionable public policy, because it disproportionately affects those who can least afford the increases.

"Lower income elders, households living below 150 percent of the poverty line and other low-income groups tend, on average, to use less energy than younger households, or higher-income households," he says.

The Indiana Utility Regulatory Commission is expected to issue a final order on the IPL case by early spring, and testimony is due in January on the NIPSCO request with a decision expected by the end of 2016.





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By Casey Smith for the Indiana Capital Chronicle.
Broadcast version by Joe Ulery for Indiana News Service reporting for the Indiana Capital Chronicle-Free Press Indiana-Public News Service Collaboration

House Republicans gave the final go-ahead Tuesday to a caucus priority bill that seeks to incentivize new power generation in Indiana.

A 63-23 party-line vote on House Bill 1007 set the measure on course for Gov. Mike Braun’s desk.

The bill will expedite approval processes for large-load customers like data centers and create cost recovery mechanisms for projects utilities take on to serve those big customers. 

It will also require a big prospective grid addition to make “significant and meaningful financial assurances” for such projects — reimbursing at least 80% of costs and protecting other existing and future customers from the expenses.

The bill, authored by Rep. Ed Soliday, Valparaiso, additionally gets tough with utilities planning to close — or convert to natural gas — any coal-fired plants of at least 125 megawatts. Current law mandates utilities that are not generating at least 85% of peak demand to report three-year projections to the Indiana Utility Regulatory Commission (IURC).

Utilities will instead be required to annually report the amount of resource generating capacity they plan to take offline. If, after an investigation, the IURC doesn’t think a utility can provide reliable service, it would have to block the utility’s plan or order it to either acquire or build capacity.

“We’re in competition with other states,” Soliday said. “We will not be the biggest incentive-offering state. (The bill) will put us in second. We won’t get a dime if they don’t come here, but if we are able to incentivize them to come here, we get 80% of something, not 100% of nothing.”

After strong pushback, senators removed more contentious provisions that intended to specifically boost small modular nuclear reactor (SMR) development — including a 20% sales tax credit for utilities. 

That tax credit remains in the bill, however, for Hoosier manufacturers that produce SMR technology which could later be used by utilities in Indiana or elsewhere across the globe.

Democratic Rep. Matt Pierce, of Bloomington, said Tuesday he has concerns about the remaining tax credit, which could cost taxpayers an estimated $280 million, according to a legislative fiscal analysis.

He worried, too, that the overall bill will “force more expensive, obsolete coal plants to remain online for a longer period of time” — given that SMR development has largely been proposed on existing coal plant sites.

“Imagine what we could do with $280 million when it comes to providing people with health care, childcare, other essential services that people may rely upon the state,” Pierce said.


Casey Smith wrote this article for the Indiana Capital Chronicle.


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Minnesota is becoming less reliant on energy imports to power up homes and businesses. That's a key finding in the latest summary of contributions from renewable sources.

The 2025 fact sheet from Clean Energy Economy Minnesota shows the state imported just 11% of the total electricity it used last year.

At the same time, carbon-free sources like wind and solar accounted for a majority of electricity generated in the state for a fifth straight year.

The group's Senior Manager of Marketing and Communications Peter Ingraham said that indicates renewables are proving their reliability - and they're not just complementary pieces of the energy puzzle.

"The people that have been operating these power grids, there's a reason that they allow these to keep going online," said Ingraham. "It's a great way for us to power our cities, to power our economies."

He said it's especially timely given the escalating trade war.

Industry experts note uncertainty about federal policy does still complicate Minnesota's clean energy sector in other ways.

That includes a desire among congressional Republicans and the Trump administration to repeal tax credits for adopting renewable energy that were approved in 2022.

Some other speedbumps have surfaced, including a slowdown in wind energy expansion. However, solar growth in Minnesota continues to take off.

Derrick Flakoll, senior policy associate at the research firm Bloomberg NEF, said both sources are becoming inexpensive to produce - but solar is in the driver's seat right now, as wind energy shakes off recent market forces.

"Wind projects are huge, and that means that it's a lot of money up front - meaning it's particularly sensitive to inflation and to interest rates," said Flakoll. "And we saw a sort of slowdown in wind build in a lot of parts of the United States as a ripple effect of some of that 2022 and 2023 era."

As for solar, new capacity grew by 35% in Minnesota last year.

In measuring electric vehicle adoption, Minnesota now has more than 65,000 EVs on the road - however, new registrations fell last year after a record high the previous year.

A new report outlines some of the barriers Illinois residents face that can make adopting solar energy more difficult and expensive than necessary.

The findings are based on feedback from residential solar installers across the state about their experiences with permitting offices and the challenges they face.

Study coauthor Theo Rosen, a campaign associate with the Environment Illinois Research & Education Center, said requirements like in-person application drop-offs and long and tedious review processes can prolong the approval time and add unnecessary costs.

"All that extra work that installers have to do, the cost of that gets passed on to consumers," said Rosen. "And the result is that it is harder and more expensive to 'go solar' in Illinois than it needs to be."

Rosen added that about 20% of Illinois residents cancel their applications for permits, because of delays in the permitting process. The report suggests standardizing permitting across the state.

The report also highlights inconsistencies in the permitting requirements across towns and cities.

It says some installers avoid certain areas altogether or charge a premium to do business there because they find the process so cumbersome.

Rosen said this lack of consistency also means it can be hard for new installers to work in the state.

"A lot of installers," said Rosen, "something that they spoke about was having to have someone's full time job be dedicated to maintaining these sort of databases of the varying code requirements, and the varying permitting processes in every municipality that they work in."

Rosen added that the report recommends the state use "instant permitting" software to streamline the process and eliminate barriers, both for installers and residents.

"Essentially, it is able to perform hundreds of code compliance checks and flag errors immediately," said Rosen, "and if a permit application is complete and it meets the requirements, approval is immediate."

The Residential Automated Solar Permitting Act is currently in the Illinois Legislature. It would require the state to implement automated solar permits, similar to what the report recommends.





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