What House Bill 1002 Would Change for Indiana Electric Customers

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Government and Politics
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January 22, 2026

House Bill 1002 has the potential to help Indiana residents, particularly low-income households and those vulnerable to extreme heat. The bill would make electric bills more predictable through budget billing, prevent shutoffs during extreme heat warnings, require utilities to offer low-income assistance programs, and increase oversight of utility performance.

However, the bill does not lower electric rates and its impact will depend heavily on how the Indiana Utility Regulatory Commission (IURC)  implements and enforces the rules. While it provides important protections, it is not a comprehensive solution to rising utility costs. Its effectiveness will ultimately depend on enforcement, public awareness, and continued community engagement.

On Tuesday, House Bill 1002 has advanced to the Indiana House floor, meaning it is eligible for debate and a vote by the full House.

Here’s what the bill would do.

 Automatic Budget Billing

Starting after June 30, 2026:

  • Most residential customers would be automatically placed on budget billing
  • Budget billing spreads energy costs evenly across the year

What customers should know:

  • You can opt out at any time without penalty
  • Utilities must offer an easy opt-out option by April 1, 2026
  • Bills must be reviewed and adjusted at least twice per year

Protection During Extreme Heat

When the National Weather Service issues an extreme heat warning:

  • Utilities cannot shut off power for eligible low-income customers
  • If power is shut off after a warning begins, utilities must restore service
  • Shutoffs may not resume until the warning ends

This protection applies to customers who qualify for Indiana’s energy assistance program.

💡 How Electric Rates Would Change

Beginning in 2027:

  • Utilities must submit three-year rate plans instead of raising rates year-by-year
  • Rates will be reviewed annually by the IURC

What this means:

  • Year 1 rates are set using the current process
  • Years 2 and 3 are adjusted based on actual utility performance
  • The IURC can reopen cases, adjust rates, and hold public hearings if needed

Utilities Graded on Performance

Utilities would be measured on:

  • Customer affordability
  • Power restoration after outages

Results matter:

  • Good performance = financial rewards
  • Poor performance = financial penalties

Help for Low-Income Customers

By July 1, 2026, utilities must offer a low-income assistance program.

Key points:

  • Eligible customers must be enrolled if they apply
  • Programs help cover monthly electric bills
  • Utilities must fund these programs
  • Utilities may ask to recover some costs, with IURC approval

More Oversight and Transparency

Starting in 2029, the IURC must publish annual reports showing:

  • Utility rate plans
  • Performance results
  • How incentives and penalties affect customer bills

📅 Key Dates to Know

  • Today: House Bill 1002 advances to the Indiana House floor
  • Next Step: Full House debate and vote
  • If Passed by House: Moves to the Indiana Senate
  • If Passed by Senate: Sent to the Governor
  • If Signed into Law:
    • Opt-out option for budget billing required by April 1, 2026
    • Automatic budget billing begins after June 30, 2026
    • Low-income assistance programs required by July 1, 2026
    • New three-year rate plans begin in 2027
    • Annual public performance reports begin in 2029
Author
Our Times Staff