Democratic gubernatorial nominee Jennifer McCormick talks during a virtual news conference on Thursday. (Screenshot of Zoom)
Hoosier democratic gubernatorial nominee Jennifer McCormick on Thursday called on lawmakers to reinstate net metering as part of a plan to lower utility bills.
Net metering allows small-time renewable energy producers to sell excess energy back to the grid at retail rates.
She also proposed new utility lobbying rules, appointing ratepayer-friendly regulators and prioritizing energy efficiency to address affordability.
“Most Hoosiers understand that in order to have utility companies … it’s a business, and they have to raise those rates,” McCormick said, during a virtual news conference. “They’re questioning the pace and just the excessive amount at once.”
Indiana’s General Assembly in 2017 approved a phased-in end to net metering.
Before then, when Hoosiers with solar power panels generated excess electricity, utilities reimbursed them at retail rates at the end of each billing cycle. Regulators established that 1-to-1 credit system in 2004 to boost solar panel adoption at a time when the technology was newer and more expensive.
But because utilities typically buy energy at significantly cheaper wholesale prices and sell it at higher retail prices to cover costs, ratepayers without solar panels subsidized the credit deal.
Senate Enrolled Act 309 reshaped that system, cutting reimbursement and setting a timeline for utilities to phase it out completely.
“I hear that from so many people that the cost of investment when Indiana took that away has been very problematic,” McCormick said.
McCormick said a return to 1:1 net metering would encourage competition and renewable energy adoption, and lead to greater energy generation and lower costs.
Other proposals
McCormick’s campaign also sought to ban utilities from using ratepayer money for lobbying, advertising, trade association dues and political contributions.
Current law and regulations allow utilities to spend money on the above, then seek approval for customer reimbursement to cover expenses.
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“If they’re going to choose to do that, it just shouldn’t be out of that pot of money,” McCormick said. “We feel like that is a misuse of ratepayer dollars, especially at a time where we’re seeing such an increase (in bills).”
She said that, as governor, she would appoint ratepayer advocates to the powerful Indiana Utility Regulatory Commission (IURC), which oversees the state’s big five electric utilities and more.
“We hear from bipartisan mayors and town councils and city councils, business leaders that are very frustrated. They feel like the IURC is a rubber stamp,” McCormick said.
Her campaign said the picks would ensure the IURC applies “the same competitive pressure that would exist if utilities were not statutorily protected monopolies.”
Finally, she pushed for investments in energy efficiency as a means to lower utility bills — with a complimentary nod to efforts from a Republican former governor.
“Mitch Daniels put in a program that was doing very, very well during his term — Energizing Indiana — and saw some great returns for not just business, but schools and individuals,” McCormick said. “… Yet, Mike Pence did away with that program.”
The program involved home assessments and efficiency upgrades, along with weatherization and lighting options, according to a 2013 news release celebrating its one-year anniversary.
McCormick said her administration would bring the program back.
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