Indiana House Passes Electric Affordability Bill on Second Reading

Legislation aims to make utility bills more affordable statewide, including budget billing and protections against disconnections.

Jan. 28, 2026 at 10:31am

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During Tuesday's session, the Indiana House heard various amendments to House Bill 1002, a bill that aims to make electric utility bills more affordable statewide. The bill offers solutions such as automatically placing residential ratepayers on budget billing, prohibiting utilities from disconnecting low-income customers' services during extreme heat, and tying utility profits to performance metrics including affordability and service restoration.

Why it matters

The bill is a response to rising electricity costs in Indiana, with statewide electric utility bills increasing by over 17% on average and NIPSCO residential customers seeing a 26.7% increase in one year. The legislation seeks to address the affordability crisis and provide more protections for ratepayers.

The details

House Bill 1002 was introduced by state Rep. Alaina Shonkwiler, R-Noblesville, and co-authored by state Reps. Ed Soliday, R-Valparaiso, and Jim Pressel, R-Rolling Prairie. The bill passed the second reading in the House on Tuesday, with 12 of 20 proposed amendments being voted on. Shonkwiler's amendment to prohibit utilities from disconnecting residential service if the heat index is expected to be above 95 degrees was the only one that passed. Other failed amendments aimed to eliminate utility sales tax, require more public hearings for rate increases, and establish statewide community energy facilities.

  • The bill requires residential ratepayers to be placed on budget billing plans on July 1, if passed.
  • Utilities cannot disconnect services from December 1 to March 15, according to the bill.

The players

Alaina Shonkwiler

State Representative, R-Noblesville, and author of House Bill 1002.

Ed Soliday

State Representative, R-Valparaiso, and co-author of House Bill 1002.

Jim Pressel

State Representative, R-Rolling Prairie, and co-author of House Bill 1002.

Mike Andrade

State Representative, D-Munster, who introduced several failed amendments to the bill.

Cherrish Pryor

State Representative, D-Indianapolis, who introduced four failed amendments to the bill.

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What they’re saying

“House Bill 1002, I understand, is a meaningful step towards progress, and I'm glad to see bipartisan support when it comes to the affordability crisis that we're seeing. But there is more we can do today to ensure that our Hoosiers continue to see the benefits of this bill in the future.”

— Mike Andrade, State Representative, D-Munster (chicagotribune.com)

“I will continue to work across the aisle to ensure that we're passing meaningful legislation that will help our Hoosiers not only in my district and across Northwest Indiana, but throughout the whole state. This is not a Republican issue or a Democratic issue. This is something that we should be able to agree on across party lines. I will continue to push for reforms that lower costs and demand real oversight. This is about fairness and transparency, and this is about standing for the people that we serve.”

— Mike Andrade, State Representative, D-Munster (chicagotribune.com)

What’s next

The Indiana House will vote to send the bill to the Senate at a later date.

The takeaway

The passage of House Bill 1002 on second reading in the Indiana House demonstrates a bipartisan effort to address the rising cost of electricity and provide more protections for ratepayers, including low-income households and those facing extreme weather conditions. The bill's focus on affordability, performance-based ratemaking, and utility disconnection policies aims to make electric utility bills more manageable for Hoosiers.