By DELANEY BARBER KWON
Guest Columnist
As Hoosiers endure the harshest energy cost crisis in two decades, Indiana Governor Mike Braun is preparing to select the next three appointees to the commission that essentially acts as the referee overseeing our state’s monopoly utilities and our electric rates.
The Indiana Utility Regulatory Commission, or IURC, is a regulatory body that most Hoosiers have never heard of but that holds tremendous power over the power in their lives.
The new commissioners, selected from a pool of candidates interviewed last month, will play an important role in shaping the state’s future energy decisions at a time when our energy outlook is increasingly uncertain – with costs rising and energy demand changing as data centers and other large customers compete for existing resources.
Gov. Braun has publicly committed to doing whatever it takes to lower Hoosiers’ bills and provide much-needed relief. Having three open positions on the five-person board means the new members will form a majority. And the Governor gets to pick the winning candidates now that the interviews are over. He has the power to reshape the IURC to put Hoosiers first.
It’s important to understand that the IURC doesn’t have its own power to act. Commissioners regulate based on instructions given to them by state lawmakers and information provided by utility companies.
Lawmakers often use the phrase “just and reasonable” when granting the IURC its regulatory authority. Absent strict direction from the legislature, the IURC has some latitude to determine what is “just and reasonable” for consumers, utilities and our state. That’s why the role of our commissioners is so important as our energy landscape continues to rapidly change.
When a utility wants to raise rates, build a new power plant, retire an old one or make major upgrades to its system, it usually has to get approval from the IURC. The IURC reviews those requests carefully to decide whether they make sense for both the company and its customers. It looks at the utility’s costs, projected needs and profits to ensure that any rate increases are fair and justified.
The IURC holds public hearings and ultimately issues formal decisions that carry the force of law. These decisions shape how Indiana meets its future energy needs, from how much power the state will require to what kinds of energy sources – such as coal, gas and renewables – will be used to meet that demand.
The goal is to strike a balance between affordability for customers and financial stability for the companies providing essential services. Right now, many Hoosiers feel like that balance is off.
This selection process presents an opportunity for Gov. Braun to select commissioners who will use whatever flexibility lawmakers give them to protect Hoosier consumers from unfair practices, ensure utilities deliver reliable services and help guide the state’s long-term energy and infrastructure planning.
Hoosiers deserve an IURC that works for them. Gov. Braun’s choices will determine whether the commission is a rubber stamp for utility interests or becomes a true advocate for fairness, transparency and affordable energy in Indiana.
Delaney Barber Kwon is Director of Government Affairs for Indiana Conservation Voters.