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Committee Approves Bill Creating Alternative Energy Fee

By Brandon Smith

Posted February 19, 2015

Indiana utility companies say customers who use alternative energy sources such as solar panels aren't paying their fair share for using the state's energy infrastructure.

A bill approved Wednesday in a House committee would allow utilities to charge future alternative energy customers a fee.

Hoosier residents and businesses who use solar panels for example and generate more energy than they use in a month can sell that energy to utility companies.

Bedford Republican Representative Eric Koch's bill would allow utilities to buy that energy for less.

It also allows utilities to charge those customers for what are called fixed costs: as Indiana Energy Association's Mark Maassel, who represents utilities, puts it, fixed costs are used to upkeep the state's energy grid.

And he notes even alternative energy customers need that infrastructure.

"And the expectation would be that you should pay for the grid that you need to use, not asking your neighbors to pay that particular cost," Maassel says.

But Citizens Action Coalition executive director Kerwin Olson says utilities are just trying to ensure their profits don't take a hit.

"We have states like Arizona, states like New Jersey, where five, six, seven, eight hundred roofs, every month, are being lined with solar PV," Olson says. "And the monopolies are protecting their revenues, protecting their profits, and embedding their monopoly status."

The legislation does not apply to any current alternative energy consumers – only future ones.

The bill passed 9-4 along party lines. It now heads to the full House.

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Committee Approves Bill Creating Alternative Energy Fee

By Brandon Smith

Posted February 19, 2015

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