Indiana’s rising utility bills have quickly become the latest front in the Statehouse affordability wars.  On Monday, Governor Mike Braun rolled out what he described as an aggressive strategy to rein in energy costs, tying the initiative to the broader affordability agenda that has already included fights over property taxes and health care pricing.  But within hours, House Democrats held their own Statehouse news conference, arguing the governor and Republican lawmakers have failed to deliver meaningful relief for Hoosier families struggling with rising costs.

Braun: Utilities Are the Next Target

Braun framed the issue as part of a larger economic squeeze facing Hoosiers.  Speaking at a Statehouse event focused on affordability, the governor pointed to inflation — which he said rose roughly 25% over the past three years — as the backdrop for rising utility bills. “The prior administration left us with structural problems that have been building for years,” Braun said.

He argued Indiana’s five investor-owned utilities have historically operated in a system tilted in their favor, adding that previous governors often avoided confronting the industry because of its political influence.  Braun said his administration intends to change that. A key part of that strategy is personnel. The governor highlighted his appointment of a new head of the Office of Utility Consumer Counselor (OUCC), which represents ratepayers in regulatory cases. The office is currently challenging a major rate increase request from AES Indiana. According to Braun, AES sought a 20% increase, while the consumer advocate has recommended a 10% decrease.

Braun also noted that three of the five members of the Indiana Utility Regulatory Commission (IURC) have been replaced with what he described as more “ratepayer-conscious” regulators. Legislatively, Braun pointed to House Bill 1002, which introduces performance-based ratemaking — essentially tying utility profits more closely to meeting benchmarks on reliability and affordability.  Braun said the approach has drawn national attention, including from U.S. Energy Secretary Chris Wright. “We want utilities to succeed,” Braun said. “But the cards can’t be stacked against the ratepayers.”

Data Centers Enter the Debate

A major piece of Braun’s strategy involves data centers — the massive power-hungry facilities being built across the country to support artificial intelligence and cloud computing. Braun said companies building “hyperscale” data centers in Indiana should cover 100% of the costs associated with their energy use, and ideally help add new supply to the grid. Otherwise, he warned, they may not be welcome. “If they’re not bringing supply with them so rates can go down,” Braun said, “they’re not going to be welcome in Indiana, period.” He also suggested water availability could influence where such projects are located, noting that many modern facilities now recycle water rather than rely on continuous flows.

Democrats: Affordability Talk Isn’t Enough

House Democrats see the situation very differently. Representative Cary Hamilton said her caucus introduced 12 amendments during the 2025 legislative session aimed at reducing utility costs, but none advanced under the Republican supermajority.

Among those proposals:

  • A temporary sales tax exemption on residential utility bills

  • Limits on private equity ownership of utilities

  • Requirements for public input before major data center projects

  • A ban on utilities charging customers for lobbying costs

  • A cap on annual utility rate increases

Hamilton said Republicans and the governor never seriously engaged with those ideas. “As far as we know, Governor Braun did not talk with House or Senate Republicans about supporting any of those amendments,” she said.  Hamilton also criticized past Republican energy policies, including votes to end statewide energy efficiency programs and to phase out net metering incentives for rooftop solar. She argued those moves weakened Indiana’s ability to build what she called “clean, independent, homegrown energy.”

The BlackRock Flashpoint

Another emerging issue is the proposed sale of AES Indiana’s parent company to investment giant BlackRock. Hamilton said she is concerned private-equity ownership could lead to higher rates and reduced service quality. House Democrats attempted to require a formal review process through the Indiana Utility Regulatory Commission before such sales could proceed, but the proposal failed. “That would give Hoosiers the ability to block those sales if they weren’t in the best interest of ratepayers,” Hamilton said.