Indianapolis, January 31, 2026
House Bill 1002, spearheaded by State Representative Alaina Shonkwiler, aims to improve electricity pricing transparency in Indiana. The bill has passed the House and is positioned for Senate consideration. It seeks to empower consumers and hold utility companies accountable by introducing performance-based ratemaking and predictable billing options. This legislation reflects a response to rising electricity costs and aims to enhance consumer rights and protections, especially during extreme weather conditions.
Indianapolis, Indiana – January 31, 2026
House Bill 1002 Pushes for Fairer Electricity Rates in Indiana
New legislation aims to enhance consumer protection and utility accountability
Indiana lawmakers are making strides toward greater transparency in energy pricing with the advancement of House Bill 1002. Spearheaded by State Representative Alaina Shonkwiler, this legislation has successfully passed the House and is on its way to the Senate. As electricity costs rise, particularly in recent years, the proposed laws seek to empower consumers while holding utility companies accountable for their service quality.
With growing concerns about affordability and reliability, particularly after a $28 increase in average monthly electricity bills last year, the legislative initiative comes at an opportune moment. By providing new frameworks for ratemaking, the bill could very well foster a more favorable landscape for consumers and encourage efficient utility practices that benefit Indiana residents.
Key Provisions of House Bill 1002
- Performance-Based Ratemaking Framework: This initiative will link utilities’ annual revenue and profit to their capability to meet consumer needs, prioritizing reliability, resilience, and affordability.
- Multi-Year Rate Plans: Utilities will be required to submit comprehensive plans for rate increases that incorporate performance incentives and penalties related to service restoration and affordability.
- Predictable Billing Options: Ratepayers will have the ability to choose fixed monthly payments and levelized billing plans, facilitating better management of their utility expenses.
- Extended Service Termination Grace Periods: The bill proposes longer grace periods to help protect consumers during extreme weather, preventing service disconnections during notably hot or cold periods.
Understanding the Context for Change
The necessity for House Bill 1002 stems from a worrying trend of rising electricity bills that has sparked debate among consumer advocates regarding the effectiveness of current energy policies. This legislation aims to address these concerns by promoting a performance-based ratemaking approach that incentivizes utilities to deliver better service to their customers while ensuring that rates remain manageable. By prioritizing accountability and transparency, Indiana lawmakers hope to create a fairer energy market.
Anticipated Impact on Consumers
If enacted, House Bill 1002 is expected to enhance consumer rights substantially in the Indiana electricity market. By mandating utilities to demonstrate reliability and affordability, the legislation aims to provide essential protections for residents, especially during times of financial strain or extreme weather. With predictable billing options and extended grace periods, consumers will have more control and flexibility over their energy costs.
Next Steps for House Bill 1002
Following its successful passage through the House, House Bill 1002 is scheduled for discussion in the Senate. Stakeholders, including consumer advocacy groups and utility representatives, will closely monitor the bill’s progress as it represents a significant shift toward fairer utility operations in Indiana. The outcome could set a precedent for similar initiatives nationwide, encouraging a trend of consumer-centered energy policies.
Key Features of House Bill 1002
| Feature | Description |
|---|---|
| Performance-Based Ratemaking Framework | Links utilities’ revenue and profit to their ability to meet residential consumers’ needs, focusing on reliability, resilience, and affordability. |
| Multi-Year Rate Plans | Requires utilities to submit multi-year plans for rate increases, incorporating performance incentives and disincentives in areas such as service restoration and affordability. |
| Predictable Billing Options | Allows ratepayers to opt for fixed monthly payments and levelized billing plans to manage expenses more effectively. |
| Extended Service Termination Grace Periods | Provides increased grace periods to protect consumers during extreme weather conditions, preventing service disconnections in the hottest and coldest months. |
Conclusion
As Indiana moves closer to finalizing House Bill 1002, residents can look forward to a more equitable and transparent approach to electricity pricing. This legislation not only reflects the determination of local leaders to secure fair service for consumers but also underscores the importance of a regulatory environment that encourages accountability among utilities. Indiana consumers are encouraged to stay informed and engaged with these developments, as active participation can further bolster efforts to shape a vibrant economic future for the community.
Frequently Asked Questions (FAQ)
What is House Bill 1002?
House Bill 1002 is legislation introduced by State Representative Alaina Shonkwiler that aims to control electricity costs for consumers in Indiana. It has passed the House and is moving to the Senate for further consideration.
What are the key provisions of House Bill 1002?
The key provisions include a performance-based ratemaking framework, multi-year rate plans, predictable billing options, and extended service termination grace periods to protect consumers during extreme weather conditions.
Why is this legislation being considered?
Recent significant increases in electricity bills have raised concerns among consumer advocates about the effectiveness of existing energy policies. House Bill 1002 seeks to address these issues by implementing a performance-based system that holds utilities accountable for delivering reliable and affordable services to consumers.
What are the next steps for House Bill 1002?
After passing the House, House Bill 1002 now awaits consideration in the Senate. If enacted, the legislation is expected to bring more transparency and fairness to utility rate-setting processes, ultimately benefiting Indiana consumers.
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