Wednesday, February 25, 2026
All Hoosiers deserve to have affordable utilities, which is why Senate Republicans unanimously passed the biggest ratemaking shift in over 100 years that will promote affordability, predictable monthly bills and service reliability.
House Enrolled Act 1002 would create a performance-based ratemaking framework where the amount utilities can collect is based on the quality of their service to Hoosiers.
Utilities would be put on a multi-year rate plan that includes performance incentives and disincentives in target areas such as service restoration, reliability and affordability.
Ratepayers would also have the option of predictable monthly utility expenses through fixed monthly payments and levelized billing plans, helping customers avoid big swings in their monthly energy bill.
The bill would also increase grace periods on termination of services that would add protections for struggling Hoosiers who have difficulty paying their bills throughout the winter and during heat waves when the temperatures exceed 95 degrees.
Senate Republicans remain dedicated to ensuring Hoosiers receive the most affordable rates possible. This progress builds on a 2022 law that ended the state's utility receipts tax, which saves Hoosiers $220 million.
HEA 1002 now heads to the governor's desk for final consideration.
