|
|
|
|
|
New Bill Would Allow Large Electric Customers In Indiana To Take Competitive Supply, Subject To Cap
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
A new bill, Senate Bill 272, has been introduced in the Indiana General Assembly by state Sen. Stacey Donato which would allow large customers to take competitive electricity supply
Customers eligible to shop for electricity would be a new or existing
nonresidential customer, or
an aggregation of two or more new or existing nonresidential customers, whose aggregate
electricity demand during the most recently concluded calendar
year exceeded 1 megawatt.
The bill would cap competitive electric sales at 20% of a utility's total retail sales,
normalized for weather, for the most recently concluded
calendar year, except that the cap would exclude sales to eligible customers whose
demand exceeded 75 MW at one
site
A queue would be established for customers seeking competitive supply if the cap is hit. The bill includes provisions governing periodic review and adjustment to the cap, as well as the treatment of new or expanded load of existing shopping customers
The incumbent utility would not be permitted to impose transition or exit fees on shopping customers
SB 272 would require that shopping customers be billed under dual billing
Competitive electric suppliers would be required to post a surety bond, or an equivalent
financial security instrument, of at least $1 million
An annual license fee of $10,000 would apply to competitive electric suppliers
The Retail Energy Advancement League (REAL) applauded Sen. Donato for championing legislation that would provide commercial and industrial businesses with a choice in their power supply.
"The concept is simple: allow large energy users to have direct access to an energy marketplace to meet their electricity needs the same way utility companies do," said Chris Ercoli, president and CEO of the Retail Energy Advancement League. "Allowing large energy users to access competitive electricity supply is a practical solution that can reduce their cost pressures, encourage new power generation from independent power producers, and ease the strain on utility systems -- benefiting all ratepayers in the long run. We applaud Sen. Donato for her comprehensive approach to help support Indiana’s energy needs."
REAL cited the benefits of electric choice in Michigan, including savings to both incumbent supply customers as well as competitive supply customers
REAL said, "In Michigan, 10 percent of a utility’s customer load is permitted to procure their own electricity. That cap has been fully subscribed since 2008, with more than 5,000 commercial and industrial customers served by a third party supplier. As of 2023, there’s an additional 5,000 customers in the queue waiting to participate in the program. This program has reduced the amount of power generation the utility needed to build and maintain by 2,798 MW -- the equivalent of four natural gas plants that could have cost all ratepayers $3.2 billion for the utilities to build."
REAL stated, "In 2023, the [MI] commercial customers that purchased from a competitive supplier saved more than $150 million compared to the utility’s commercial rate in Michigan, according to data from the U.S. Energy Information Administration."
ADVERTISEMENT Copyright 2026 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
January 14, 2026
Email This Story
Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW -- Account Executive (Commercial Retail Energy)
|
|
|
|
|