Energy Efficiency

Courtesy / State of Indiana

“Worse than doing nothing” – that’s how critics describe Indiana’s new energy efficiency effort crafted by Governor Mike Pence and the General Assembly.  But the governor insists the program will keep more money in Hoosiers’ pockets.

Environmental and consumer advocacy groups say the new energy efficiency program is going to drive up costs for residential consumers.  Under the approved legislation, each utility company must develop its own energy efficiency program, and they can raise rates to cover any revenue they lose because of decreased energy usage.

Brandon Smith / Indiana Public Broadcasting

Legislation a Senate committee approved Thursday creates a new Indiana energy efficiency program to replace the one lawmakers eliminated last year.  But critics say the bill unfairly favors utilities over ratepayers.

Indiana’s previous program set energy efficiency goals utility companies were expected to meet.  Legislation proposed by Indianapolis Republican Senator Jim Merritt – and crafted by Governor Mike Pence’s office – allows utility companies to set their own savings goals.  The Indiana Utility Regulatory Commission would then approve the utilities’ plans. 

Report: "Energizing Indiana" Was Cost Effective

Aug 19, 2014

A new report indicates the state’s energy efficiency program legislators eliminated earlier this year was cost effective—saving about three dollars for every one dollar spent.

The Indiana Utility Regulatory Commission report shows the biggest payback from the program—called Energizing Indiana—was in rebates given to commercial and industrial businesses that upgraded to energy efficiency equipment. For every one dollar in rebate, the companies saved more than five dollars in electricity costs.

Governor Mike Pence says he’s encouraged by the response he’s received from lawmakers as he  pushes for a new energy efficiency program. The program would replace Energizing Indiana, which was eliminated by legislation Pence allowed to  become law Thursday.