Braun signs Koch bill to lower utility costs for Hoosiers

Local News X Gov. Mike Braun signs House Enrolled Act 1002 into law at the Statehouse on April 6, 2026. The new legislation, sponsored by State Sen. Eric Koch, overhauls Indiana’s utility ratemaking system with the goal of lowering energy costs and increasing accountability for ratepayers, including those in Brown County. Shown from left are Rep. Ed Soliday, Rep. Alaina Shonkwiler, Governor Braun, Senator Koch, and Indiana Energy Secretary Suzie Jaworowski. Indiana Gov. Mike Braun has signed a new law aimed at lowering energy costs and increasing accountability for utility companies, marking a significant shift in how utilities are regulated across the state. House Enrolled Act 1002, signed April 6, overhauls Indiana’s long-standing utility ratemaking system by replacing the traditional cost-of-service model, used since 1913, with a performance-based framework. Under the previous system, utilities were largely guaranteed a return on equity for their investments. The new law eliminates that guarantee, instead tying utility profits to their ability to meet specific benchmarks for affordability, reliability and service. Under the performance-based ratemaking model, utilities will operate under multi-year rate plans that include both incentives and penalties. Companies must now demonstrate measurable results in key areas such as restoring service quickly, maintaining reliable systems and keeping costs manageable for customers. Returns will depend on performance, rather than being built into the system. “Affordability is this administration’s top priority, and high electricity prices have placed a major burden on Hoosiers’ wallets,” Braun said in a statement. “I’ve taken action to put affordability for Hoosiers above profits for utilities, and this new law requiring utilities to meet performance benchmarks based on affordability and accountability is a big step forward for affordability.” The legislation also includes several consumer protections designed to ease the burden on households, particularly those with lower incomes. It expands access to fixed monthly payment and levelized billing plans, increases grace periods before utility shutoffs and adds safeguards for residents who struggle to pay bills during extreme weather seasons. State Sen. Eric Koch, a Republican from Bedford who sponsored the legislation, represents Senate District 44, which includes Brown County along with Jackson, Lawrence and Orange counties and part of Monroe County. “Utility affordability is one of the biggest concerns facing Hoosiers,” Koch said. “HEA 1002 will help Hoosiers better afford their monthly utility bills by putting protections in place for ratepayers and give utility companies the incentive to help their customers do that.” Koch, who chairs the Senate Committee on Utilities, played a key role in advancing the bill through the legislature, positioning the measure as a response to increasing concern over rising monthly utility costs in communities like those across Brown County. Braun has made energy affordability a central focus of his administration. In recent months, he appointed a new Utility Consumer Counselor and selected three commissioners to the Indiana Utility Regulatory Commission who prioritize ratepayer interests. Those appointments now form a majority on the commission, which is responsible for ensuring utility rates remain just and reasonable. Braun was joined at the bill signing by Koch, Rep. Alaina Shonkwiler, Rep. Ed Soliday and Indiana Energy Secretary Suzie Jaworowski. Featured Local Savings