Positive Aspects of SB 309 Overshadowed by Confusion Over Solar Energy Production

Three amendments were recently offered to SB 309 and approved during last week’s hearing – two by Rep. David Ober (R-Albion) and one by Rep. Ryan Hatfield (D-Evansville). One amendment clarified who qualified as an applicant for a CPCN, one for the study of self-generation by schools and one changes the deadline of installation to receive the 30-year grandfathered rate to December 31, 2017.

The Indiana Chamber testified in support of the bill and tried to clarify some of the confusion over net metering (no one is trying to kill the solar industry). We also expressed some of the concerns that some members have over co-generation (that they would like more flexibility). We emphasized that we do not want the bill to fail because it is truly a compromise of long-standing issues that industrial users and businesses, as well as residential ratepayers, have had with Indiana’s investor-owned utilities. It will not fix all concerns our members have expressed, but is a first step in helping businesses control costs and building a statewide energy plan. It will serve as a building block of the Chamber’s efforts to maintain Indiana’s competitive edge when looking at energy costs that have risen over the past decade.

On March 22, the House Utilities, Energy and Telecommunications Committee heard nearly a day of testimony on this bill in a full House chamber from many groups and individuals, both in support and against the bill. No vote will be taken until Wednesday.

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Bill to Change Net Metering for Those Investing in Wind and Solar Energy

The Senate Utilities Committee heard a full day of testimony on SB 309 on February 9 from both sides. No vote was taken and the bill will be heard again on February 16.

Most of the committee testimony was focused on net metering. Senator Hershman offered an amendment on the floor and Sen. Tim Lanane (D-Anderson) indicated he will be offering additional amendments to be considered at the next hearing. The Indiana Chamber gave testimony in support of the bill, including stating: the expectations for energy needs are diverse; our concerns about net metering if we do not make a step forward; the potential for rising costs through continued litigation; and the concern of numerous parties intervening in cases which will further slow down the process and increase costs to both utilities and ratepayers.

Overall, we testified the current bill is a step in the right direction and can be used as a building block going forward.

This bill is truly a compromise of long-standing issues that industrial users and businesses, as well as residential ratepayers, have had with Indiana’s investor-owned utilities. It will not fix all of the concerns our members expressed, but is a first step in helping businesses control costs. It has elements of competitive procurement, net metering, distributive generation and transparency of utility rates. It will serve as a building block of the Chamber’s efforts to maintain Indiana’s historical competitive edge, given the increase in energy costs over the past decade. With that said, we will need to consider all of the amendments before ultimately taking a final position on the bill.