Governor Mike Braun’s energy affordability priorities are delivering early wins for ratepayers. Governor Braun recapped Indiana’s new approach to lowering energy costs and strong commitment to affordability.
“Utility rates are too high, and my actions to stand up for ratepayers on appointments to the regulatory commission, bring new power to the grid, and overhaul how utilities are regulated to lower Hoosiers’ bills is starting to pay off. There is still more to do, but these early successes and recognition on the national stage are proof that our energy affordability strategy is delivering results for Hoosiers.” - Governor Mike Braun
Last week, Indiana Michigan Power announced it will propose a base rate deduction for customers due to increased revenue generated by large new electricity users, including data centers in Indiana. This is a significant payoff for Governor Braun’s ratepayer-focused strategy on data centers. Governor Braun has declared that data centers coming to Indiana need to bring their own power to the grid, and that data center can be partners in lowering ratepayers’ bills by supplying more power to the grid than they need.
Governor Braun appointed three ratepayer-focused nominees to the Indiana Utility Regulatory Commission (IURC), now constituting a majority, to make decisions in the public interest to ensure utilities provide service at just and reasonable rates.
Last month, the IURC announced an investigation into the state’s investor-owned utility companies. A public hearing on their affordability will be held later this month.
During the 2026 legislative session, Governor Braun worked with the Indiana House of Representatives to pass House Enrolled Act 1002, a major reform designed to modernize how Indiana regulates electric utilities.
Historically, the system guaranteed utilities a return on equity for both operations and capital investments, creating incentives for over-investment that could increase costs.
HEA 1002 introduces performance-based ratemaking, which requires utilities to meet measurable benchmarks for affordability and reliability through performance incentive mechanisms. Returns are no longer guaranteed, and utility companies now must be accountable for affordability.
Indiana’s policy changes to lower energy costs for Hoosiers are drawing national attention. U.S. Secretary of Energy Chris Wright on Wednesday highlighted Indiana as an example of how states can bring down utility costs and improve affordability for families on The Ingraham Angle.
In Northwest Indiana, NIPSCO has now announced additional short-term relief measures for customers through March 31, including waived late fees and reconnect fees, a pause on service disconnections for nonpayment, and reduced reconnect deposits for gas customers.
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