By State Sen. Dennis Kruse (R- Auburn)
Recently, many questions have been raised about the Energizing Indiana program and its effectiveness.
Energizing Indiana is a state program, created in 2009, designed to help consumers reduce their energy consumption and promote efficiency.
Dennis Kruse
To pay for these efficiency initiatives, electric customers across Indiana have been charged $500 million. In the next five years, Hoosiers are projected to pay $1.2 billion for the Energizing Indiana program.
In the future, it will be difficult to achieve savings that justify the fees being charged. Also, many customers paying the fee haven’t received any direct assistance to increase their energy efficiency.
That’s why the General Assembly just passed a law pausing the program and requiring the Indiana Utility Regulatory Commission to analyze its cost and benefits.
The most important questions that must be answered are: Are these programs getting the intended results? Are they worth Hoosiers’ large investment?
In addition to the questions about the fairness of Energizing Indiana to Hoosier households, there are concerns that the program hurts employers.
Under these programs, companies are required to pay the surcharge for energy efficiency investments they already have made. They also may be forced to adopt cookie-cutter efficiency measures that are ill-suited for their business. These costs take a financial toll on the business, and part of the burden falls on consumers.
Unsurprisingly, large industrial companies have reported that Indiana’s surcharge for these types of programs is a significant deterrent to setting up shop in our state. These are jobs our state is losing.
Energizing Indiana seems to be based on a myth that businesses won’t use energy-efficient measures unless prodded to do so. In truth, many of Indiana’s large industrial facilities embraced sophisticated energy efficiency protocols years ago. They did so because it made financial sense.
For example, the Subaru plant in Lafayette is one of the most energy-efficient manufacturing facilities in the nation. The Lafayette plant recycles 99.9 percent of its leftover steel, plastic, wood, paper and glass. It was the first car manufacturing plant to achieve zero landfill status.
It’s my hope that by pausing Energizing Indiana, Indiana can determine if this program, funded by Hoosiers, is a worthwhile and valuable investment. Additionally, it will allow us to take a broader look at how we can promote energy efficiency without stifling innovation or unduly burdening Hoosier ratepayers and employers.
