House Bill 1423 Lets Utilities Choose a Formula or a Regulatory Review

Is HB 1423 Putting the Foxes and Hawks in Charge of the Chicken house?

The City County Observer has published several articles in the past of an informative nature that have factually pointed out that here on the north side of the money saving bridge the basic charge for electricity for the average user is 188% higher than it is in Henderson and 133% higher than it is in Princeton.

Today the Indiana House of Representatives released a bill that was designed to allow utilities in Indiana including electrical, gas, water, and wastewater providers to choose between adjusting rates annually according to a “formula” or applying for rate increases the old fashioned way by applying to the respective regulatory board.

A majority of consumer groups oppose the bill on the grounds that consumers are better served by regulation of legislated monopolies than they are by subjecting themselves to complicated formulas that will have substantial input from the utilities. Consumers are also concerned with granting the utilities the privilege to choose which way to apply for increases. Intuitively speaking each utility would choose whichever method maximized their own revenue which would not benefit consumers.

Stan Pinegar the President of the Indiana Energy Association supports the bill on the grounds that customers will have more stable rate increases rather than be subject to rate spikes associated with regulation. Consumers presently have the option of budget plans with most utilities to desensitize their bills to extreme weather.

The sponsor of the bill is Republican State Representative L. Jack Lutz of the 35th House District that is northeast Indianapolis in the area between and around Anderson and Muncie.

The full text of the bill is at the following link:
http://www.in.gov/legislative/bills/2011/IN/IN1423.1.html

The most recent impact report is on the following link:
http://www.in.gov/legislative/bills/2011/PDF/FISCAL/HB1423.002.pdf