IndianaHB 1002Second Regular Session 124th General Assembly (2026)HouseWALLET

Electric utility affordability.

Sponsored By: Alaina Shonkwiler (Republican)

Signed by Governor

Summary

Requires an electricity supplier, other than a municipally owned utility, that is under the jurisdiction of the Indiana utility regulatory commission (IURC) to do the following: (1) Beginning with the first monthly billing cycle that begins after June 30, 2026, apply a levelized billing plan (plan) to all active residential customer accounts: (A) for service provided under the electricity supplier's standard residential tariff to a household that is eligible for and has applied for assistance from the state's home energy assistance program; and (B) to which a plan does not already apply. (2) Not later than April 1, 2026, offer each customer a mechanism by which the customer may opt out of a plan at any time without penalty. (3) Not later than July 1, 2026, for any plan offered by the electricity supplier and applied to an active customer account, amend or design the plan so that plan's account reconciliation mechanism is applied at such times during a calendar year to reflect typical seasonal patterns of electricity usage by residential customers, but not more than two times during a calendar year. Prohibits an electricity supplier from referring to or promoting a levelized billing plan as a "budget billing plan" unless the levelized billing plan also provides other specified forms of relief for customers. Authorizes the IURC to adopt rules to implement these provisions. Amends existing law granting the IURC the authority to take certain actions with respect to the rates and services of public utilities during emergency circumstances, as judged by the IURC, to provide instead that the IURC may recommend that the governor declare a disaster emergency or proclaim a state of energy emergency during which the IURC may take such actions. Specifies that the emergency must result from: (1) a national economic depression; (2) an act of war; or (3) a disaster of unprecedented size and destructiveness. Provides that an electric utility, other than a municipally owned utility, may not terminate residential electric service to a customer on any day with respect to which the National Weather Service has forecast, not earlier than 48 hours in advance, a heat index of at least 95 degrees for the location where the customer receives service. Requires an electricity supplier, other than a municipally owned utility, that is under the jurisdiction of the IURC for the approval of rates and charges to report to the office of utility consumer counselor (OUCC) on a quarterly basis certain data concerning residential customer accounts. Requires the OUCC to annually compile and summarize the information contained in the reports and include the summary in the OUCC's annual report to the interim study committee on energy, utilities, and telecommunications. Provides that an investor owned electricity supplier that is under the jurisdiction of the IURC for the approval of rates and charges must petition the IURC for approval of any change in its basic rates and charges through the submission of a three-year multi-year rate plan (MYRP). Beginning in 2026, requires each electricity supplier to file its first petition with the IURC for approval of an MYRP according to a prescribed schedule. Provides that the base rates for the first rate year of an MYRP shall be established by the IURC in the same manner that base rates would be established in a proceeding for a change in basic rates and charges that occurs outside an MYRP. Specifies that in a petition to the IURC for a multi-year plan, an electricity supplier must include certain information in its case in chief. Provides that for each rate year in an electricity supplier's MYRP, the following apply: (1) A customer affordability performance metric and an associated performance incentive mechanism (PIM) that: (A) is based on the electricity supplier's performance in meeting the customer affordability performance metric; and (B) provides financial rewards or penalties to the electricity supplier based on that performance. (2) A service restoration performance metric and an associated PIM that: (A) is based on the electricity supplier's performance in meeting the service restoration performance metric; and (B) provides financial rewards or penalties to the electricity supplier based on that performance. Sets forth the methods by which the IURC must calculate the prescribed performance metrics and determine the associated PIMs. Sets forth specified findings the IURC must make in approving an electricity supplier's MYRP. Provides that at any time before the expiration of an electricity supplier's approved MYRP, the IURC may, upon its own motion, or at the request of the OUCC or the electricity supplier: (1) examine the electricity supplier's rates under the MYRP; (2) conduct periodic reviews with opportunities for public hearings and comments; and (3) adjust the base rates or PIMs under the MYRP. Beginning in 2029, requires the IURC to include in its annual report certain information about: (1) the status of electricity suppliers' MYRP filings and current MYRPs; (2) electricity suppliers' calculated performance metrics for the current rate year; and (3) the impact of all applicable PIMs on customer rates. Requires the IURC to adopt rules to implement these provisions. Requires an electricity supplier, other than a municipally owned utility, that is under the jurisdiction of the IURC to offer, not later than July 1, 2026, a low income customer assistance program (program) that provides financial assistance to low income residential customers for the payment of monthly bills for utility service. Requires an electricity supplier to annually fund its program in an amount equal to: (1) at least 0.2% of the electricity supplier's jurisdictional revenues for residential customers; plus (2) any contributions from governmental agencies or programs or from other third parties. Provides that if a customer who applies for assistance is eligible for assistance under the program, the electricity supplier shall enroll the customer in the program. Provides that an electricity supplier may, but is not required to, petition the IURC for approval to recover eligible program costs. Provides that "eligible program costs" do not include costs recovered by the electricity supplier through contributions that are provided at no cost to the electricity supplier. Beginning in 2027, requires the IURC to include each year in its annual report specified information concerning each electricity supplier's program with respect to the most recently concluded state fiscal year. Requires the IURC to adopt rules to implement these provisions.

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 5 benefits, 0 costs, 5 mixed.

Electric bill help for low-income households

By July 1, 2026, electricity suppliers other than municipal utilities must offer low-income help with monthly electric bills. Customers must agree to pay for service and qualify for and apply to the state home energy assistance program. Suppliers must enroll eligible applicants when funding and program limits allow; qualifying existing programs can satisfy this requirement. By July 1, websites must explain applications and enrollment closures or reopenings; bills issued after June 30 must give a notice and application contact. The law also protects qualifying assistance programs from being treated as discriminatory under rate laws.

Shutoff protections for low-income utility customers

Electric and gas utilities cannot shut off qualifying households from December 1 through March 15. Households must qualify for and apply for state heating assistance; commission procedures must keep service on while eligibility is decided. Electric shutoffs are also barred at covered locations during National Weather Service heat-index forecasts of at least 95°F. Those forecasts must be issued no earlier than 48 hours ahead, and households must qualify and apply that calendar year. If an earlier shutoff notice's 14-day period ends on the forecast date, that period pauses until the first following day the forecasted heat index is not reached. By June 1, 2026, electric and gas utilities must post shutoff-relief notices with a toll-free number or application-information link.

Smoother electric payments with opt-out rights

Starting with the first billing cycle after June 30, 2026, covered residential accounts enter levelized billing unless customers opt out. This includes households on standard residential rates that qualify for and have applied for state home energy assistance. Equal monthly payments are checked against actual use; this does not lower the total charge for electricity. By April 1, 2026, suppliers must provide penalty-free opt-outs, written notices to qualifying customers, and online plan details. By July 1, 2026, account adjustments must follow seasonal use when possible and occur no more than twice yearly. Covered websites, bills, and communications cannot call these plans “budget billing” unless they also offer payment extensions, deferrals, or forbearance; the bill and communication restrictions apply after June 30, 2026.

Yearly funding for low-income electric assistance

Beginning in 2027, suppliers must fund their low-income electric assistance programs by March 1 each year. Required funding is at least 0.2% of regulated residential revenues, plus government and other third-party contributions received. When program limits block further enrollment, unused required funds must be kept separate and held in trust for the next year. This funding rule does not set any household's assistance amount.

Faster voice service in disaster areas

During a governor-declared disaster, Indiana's utility commission can speed up voice service in areas with no voice-service provider. It can issue orders to protect affected residents and businesses. An authorized provider can use any available technology or medium it chooses. The law sets no household payment or service price.

Capped rate increases for assistance costs

Electric suppliers can seek approval to recover eligible assistance-program costs through base rates or a separate rate adjustment. Separate adjustments cannot raise average total retail revenues by more than 2% for the covered 12 months. This is not a 2% cap on each household's bill; excess eligible costs can be sought in the next base-rate case. The commission must find costs reasonable, effects on other customers minimal, and approval in the public interest. Lost revenues and costs covered by no-cost government or third-party contributions are excluded, and forecast-based charges require later checks against actual costs.

Temporary utility changes during major emergencies

Indiana's utility commission can recommend emergency declarations for a national economic depression, war, or an exceptionally destructive disaster. During the resulting governor-declared disaster or energy emergency, it can temporarily change or suspend utility rates, service, practices, schedules, or orders. These powers last only during the emergency and remain subject to statutory time limits, required approvals, and legislative oversight of renewals. The law sets no particular rate increase or decrease.

Multi-year electric rates with customer safeguards

Covered suppliers must seek basic rate changes through three-year plans, subject to statutory exceptions. The largest supplier files November 16–December 14, 2026; others first file during 2027–2029 based on qualifying rate orders. Early filing by September 1, 2026 requires a first-year revenue reduction; interim relief after March 14, 2026 does not replace scheduled filings. First-year rates use ordinary rate-case methods; years two and three reflect specified changes in utility investment and accounting balances. After notice and a hearing, the commission must find rates fair and not suddenly and substantially higher. Certain temporary-rate review and reconciliation rules no longer apply after a plan petition; suppliers with approved infrastructure-charge plans also avoid a separate pre-expiration rate review when they have or seek a multi-year plan. Suppliers can defer consideration of new regulatory-asset costs not already recovered in rates, without guaranteeing later recovery; replacement plans are due 30–60 days before expiration.

Utility earnings tied to electric affordability

Each multi-year plan year, the commission compares five-year average yearly residential-bill changes with U.S. electricity price changes. The bill figures are adjusted for weather. If the supplier's growth exceeds the national measure by more than 2 percentage points, its allowed return must fall. If it trails by more than 2 percentage points, its allowed return must rise. Either adjustment is limited to 1 basis point, or 0.01 percentage point; the law sets no direct household bill change.

Utility earnings tied to outage performance

Each multi-year plan year, the commission uses a service-restoration score based on average customer outage duration, including major events. It compares the latest year with the preceding five-year average. A score above 5 requires an allowed-return increase; a score below negative 5 requires a decrease. Either adjustment is limited to 0.50 basis point, or 0.005 percentage point. The law does not set a specific change to household bills.

Sponsors & Cosponsors

Sponsor

  • Alaina Shonkwiler

    Republican • House

Cosponsors

  • Alex Burton

    Democratic • House

  • Andrea Hunley

    Democratic • Senate

  • Brian Buchanan

    Republican • Senate

  • Dan Dernulc

    Republican • Senate

  • Daryl Schmitt

    Republican • Senate

  • Ed Charbonneau

    Republican • Senate

  • Edmond Soliday

    Republican • House

  • Eric Koch

    Republican • Senate

  • Fady Qaddoura

    Democratic • Senate

  • Gary Byrne

    Republican • Senate

  • J.D. Ford

    Democratic • Senate

  • Jeff Raatz

    Republican • Senate

  • Jim Pressel

    Republican • House

  • Justin Busch

    Republican • Senate

  • Linda Rogers

    Republican • Senate

  • Liz Brown

    Republican • Senate

  • Mike Bohacek

    Republican • Senate

  • Nick McKinley

    Republican • Senate

  • Randy Maxwell

    Republican • Senate

  • Rick Niemeyer

    Republican • Senate

  • Spencer Deery

    Republican • Senate

  • Stacey Donato

    Republican • Senate

  • Travis Holdman

    Republican • Senate

  • Vaneta Becker

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 778 • No: 957

House vote • 2/19/2026

House concurred with Senate amendments

Yes: 94 • No: 2

Senate vote • 2/17/2026

Third reading: passed

Yes: 46 • No: 0

Senate vote • 2/16/2026

Amendment #16 (Pol) failed

Yes: 20 • No: 28

Senate vote • 2/16/2026

Amendment #6 (Pol) failed

Yes: 17 • No: 31

Senate vote • 2/16/2026

Amendment #14 (Hunley) failed

Yes: 23 • No: 26

Senate vote • 2/16/2026

Amendment #1 (Qaddoura) failed

Yes: 16 • No: 31

Senate vote • 2/16/2026

Amendment #5 (Qaddoura) failed

Yes: 16 • No: 31

Senate vote • 2/16/2026

Amendment #2 (Pol) failed

Yes: 18 • No: 27

Senate vote • 2/16/2026

Amendment #13 (Hunley) failed

Yes: 20 • No: 28

Senate vote • 2/16/2026

Amendment #18 (Pol) failed

Yes: 14 • No: 34

House vote • 1/28/2026

Third reading: passed

Yes: 89 • No: 4

House vote • 1/27/2026

Amendment #15 (Andrade) failed

Yes: 33 • No: 62

House vote • 1/27/2026

Appeal the ruling of the chair (Pierce M); ruling of the chair sustained

Yes: 63 • No: 30

House vote • 1/27/2026

Amendment #10 (Pierce M) failed

Yes: 34 • No: 61

House vote • 1/27/2026

Amendment #5 (Pryor) failed

Yes: 32 • No: 61

House vote • 1/27/2026

Amendment #4 (Hamilton) failed

Yes: 30 • No: 62

House vote • 1/27/2026

Amendment #6 (Pryor) failed

Yes: 31 • No: 63

House vote • 1/27/2026

Amendment #8 (Pryor) failed

Yes: 30 • No: 62

House vote • 1/27/2026

Amendment #7 (Pryor) failed

Yes: 31 • No: 61

House vote • 1/27/2026

Amendment #14 (Andrade) failed

Yes: 30 • No: 61

House vote • 1/27/2026

Amendment #13 (Andrade) failed

Yes: 31 • No: 63

House vote • 1/27/2026

Amendment #16 (Andrade) failed

Yes: 30 • No: 65

House vote • 1/27/2026

Amendment #19 (Andrade) failed

Yes: 30 • No: 64

Actions Timeline

  1. Signed by the Governor

    2/26/2026House
  2. Public Law 36

    2/26/2026House
  3. Signed by the President of the Senate

    2/25/2026Senate
  4. Signed by the President Pro Tempore

    2/24/2026Senate
  5. Signed by the Speaker

    2/23/2026House
  6. House concurred with Senate amendments; Roll Call 293: yeas 94, nays 2

    2/19/2026House
  7. Motion to concur filed

    2/19/2026House
  8. Returned to the House with amendments

    2/18/2026Senate
  9. Third reading: passed; Roll Call 171: yeas 46, nays 0

    2/17/2026Senate
  10. Senators Byrne, Bohacek, Maxwell, McKinley added as cosponsors

    2/17/2026Senate
  11. Senator Schmitt added as cosponsor

    2/17/2026Senate
  12. Senator Rogers added as cosponsor

    2/17/2026Senate
  13. Senator Raatz added as cosponsor

    2/17/2026Senate
  14. Senator Qaddoura added as cosponsor

    2/17/2026Senate
  15. Senator Niemeyer added as cosponsor

    2/17/2026Senate
  16. Senator Holdman added as cosponsor

    2/17/2026Senate
  17. Senator Dernulc added as cosponsor

    2/17/2026Senate
  18. Senators Deery, Brown L added as cosponsors

    2/17/2026Senate
  19. Senator Charbonneau added as cosponsor

    2/17/2026Senate
  20. Senator Busch added as cosponsor

    2/17/2026Senate
  21. Senator Becker added as cosponsor

    2/17/2026Senate
  22. Amendment #18 (Pol) failed; Roll Call 167: yeas 14, nays 34

    2/16/2026Senate
  23. Amendment #19 (Pol) failed; voice vote

    2/16/2026Senate
  24. Senator Buchanan added as second sponsor

    2/16/2026Senate
  25. Second reading: ordered engrossed

    2/16/2026Senate

Bill Text

  • Engrossed House Bill (S)

  • Enrolled House Bill (H)

  • House Bill (H)

  • House Bill (S)

  • Introduced House Bill (H)

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