Opponents Charge Pence's New Energy Efficiency Program Uses Fuzzy Math

May 26, 2015

As new sources come online, energy should become more plentiful and cheaper -- unless the state allows companies to raise rates to compensate.
Credit Stan Jastrzebski / WBAA News

“Worse than doing nothing” – that’s how critics describe Indiana’s new energy efficiency effort crafted by Governor Mike Pence and the General Assembly. 

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. 

When pressed on the issue of utility companies recovering lost revenue by raising rates – which has the potential to keep costs the same for consumers, even as they use less energy -- Pence Tuesday stuck to his talking points.

“I really do believe, in energy policy, that we ought to take advantage of all the resources that we have; we ought to develop all the energy resources that we have," the governor says. "But that energy efficiency, conservation, alternative sources of energy all have to be a part of the equation.”

Pence administration officials admit utility bills will go up, no matter what; they argue energy efficiency will keep costs from rising as high as they otherwise would.  Any rate increases would still have to be approved by the Indiana Utility Regulatory Commission.