Dive Summary:
- After being passed in the Indiana Senate, a bill allowing utilities to increase rates without going through the customary regulatory process is being weighed in the Indiana House of Representatives.
- The bill would allow utilities to use cost "trackers" to compute what they need to improve the grid.
- Utilities believe the bill would enable them to modernize infrastructure without bearing all the risk while consumer groups, commercial and industrial electricity customers oppose the bill as they fear an increase in costs.
- House Speaker Brian Bosma (R-Indianapolis) said he expects House Utility Chairman Eric Koch (R-Bedford) to revise the bill "in a reasonable way" so that Indiana can stay "competitive on utility rates" while simultaneously encouraging utilities to enhance the electric grid by minimizing the financial risk the would be taking.
From the article:
"... The Indiana legislature is considering a measure to allow utilities to increase rates on their own without going through the typical regulatory process, according to a story in the Evansville Courier and Press. The Senate has approved a bill that would let utilities use 'cost trackers' to calculate what they need to upgrade infrastructure. It's still a long ways from becoming law – it must still pass the Indiana House where it faces opposition from consumer groups. Even so, it is a glimmer that perhaps some states are realizing that the current system is causing utilities to fall behind. Far too often, they cannot get reimbursement until after they've made the expenditures and must run the risk that some or all of the improvements will be disallowed. ..."