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Indiana’s electric system is changing—but not because of any one event or decision. Many of the power plants that serve Hoosiers today were built decades ago, and a large share of them are scheduled to retire over the next 10 years. Even if no new data centers or large factories were coming to the state, Indiana would still need to replace aging power plants and plan for steady growth in electricity use.
At the same time, electric bills are already rising. Since 2008, Indiana’s electric rates have gone up 60%, one of the fastest increases in the country. Yet during that same period, utilities added relatively little new power generation. Looking ahead, Indiana will need a significant amount of new electricity—about 60% more by 2035—and building that power will be expensive. Current plans could require billions of dollars in new utility-owned power plants, paid for by customers through higher monthly bills.
That reality is why lawmakers should consider practical solutions that help control costs without disrupting the entire system. One such option is Senate Bill 272, called the Energy Freedom & Fairness Act and sponsored by Sen. Stacey Donato.
This proposal does not upend the system or change how most Hoosiers get their electricity. Instead, it makes a small, targeted adjustment: allowing a limited number of very large businesses to buy their electricity from private power providers instead of the utility.
Why does that matter? Because when utilities build new power plants, everyone pays for them, whether they use the power or not—and utilities earn a guaranteed profit on top. If some large users pay for their own power needs and shoulder the investment risk, utilities don’t need to build as many new plants, and that helps keep costs down for everyone else.
This isn’t a silver bullet. It won’t solve every energy challenge Indiana faces. But it does reduce pressure on the system and helps slow the pace of future rate increases. And it can be done right away.
This approach already works. In fact, 24 states already allow some large businesses to purchase electricity from private suppliers. Importantly, 10 of those states still have traditional utility monopolies, just like Indiana.
Michigan is a good example. Since 2008, Michigan has allowed a limited share of large customers to shop for electricity. That program has been full ever since it started, serving more than 5,000 businesses, with thousands more waiting to participate.
The results are indisputable.
Utilities in Michigan avoided building nearly 3,000 megawatts of new power plants and are preventing billions of dollars of investment risk from being placed on all ratepayers.
In just one year alone, Michigan businesses saved more than $150 million compared with utility rates.
And Michigan utilities are still responsible for keeping the lights on. Reliability hasn’t suffered.
Indiana’s energy challenges won’t be solved overnight. But many proposals on the table today rely on years of construction and billions in new utility spending—costs that ultimately land on Hoosier electric bills.
SB 272 offers a more immediate, practical option: Let the large energy users that want to pay for their own power do it. By reducing how much utilities need to build, the state can limit future rate increases, encourage private investment and preserve flexibility as demand grows.
This isn’t a dramatic overhaul. It’s a targeted adjustment with real benefits—and a sensible step for Hoosier families already feeling the impact of rising energy costs.•
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Ercoli is the president and CEO of Retail Energy Advancement League, a national advocacy organization dedicated to the expansion and modernization of American retail energy markets.
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