Fixed charges in Indiana

What are fixed charges?

Your total utility bill is the sum of various charges, some of which increase or decrease depending upon how much electricity you use. Other charges, known as fixed charges, do not change, regardless of how much electricity you use.

Fixed charges in Indiana

Indiana investor owned utilities (IOUs) levy 4 of the 10 highest fixed charges of all Midwestern IOUs. For example, Indianapolis Power & Light (IPL) charges customers a $17 monthly fixed fee, the highest among IOUs in the region—and the charge would be even higher if IPL hadn’t settled with ratepayer interest groups in 2018. In recent years, Indiana IOUs have been some of the most aggressive in the country in their attempts to raise fixed charges for Hoosier customers.

Fixed charges undermine the economics of rooftop solar and energy efficiency by disincentivizing customers from using less electricity from their utility: why bother trying to cut down on your energy usage or produce your own energy when your utility bill can only go so low? Fixed charges also disincentivize the development of new efforts to put more power in the hands of consumers as part of a larger attempt to reform the electric grid. They ultimately lock ratepayers into higher rates and exempt utilities from having to find more innovative and cost-efficient ways to provide the services their customers want.

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