The Indiana Utility Regulatory Commission (IURC) is taking a commendable approach to conduct their own investigation in search of solutions for more affordable energy. It’s an objective set by legislators and regulators across the country. The best way to achieve that objective is by reducing infrastructure costs that are paid by ratepayers.

In Indiana’s current energy structure, ratepayers bear the risks and costs ––plus guaranteed profits for shareholders –– when utilities build new infrastructure projects, such as power plants. Indiana is in need of new power generation to be built, as electricity demand increases and outdated power plants are retired, forcing all ratepayers to pay more in their electric bills to cover those costs.

For example, one 700 megawatt natural gas plant will cost at least $800 million dollars. Indiana utilities project they will need new generation that is the equivalent of nearly two dozen natural gas plants to meet projected demand by 2035.

Indiana power bills were already increasing during the ‘flat load era,’ with minimal new power generation built. From 2008 to 2024, the price performance of Indiana’s electricity has increased 60%, ranking the state seventh worst in the country for price percentage change during that time. The cost of electricity increased 46% alone for industrial consumers during those same years, whereas similar industrial consumers in neighboring Illinois, Ohio and Michigan only saw rates increase by 15-25%. The difference in energy policies is benefiting consumers in neighboring states.

As the IURC diligently investigates energy affordability, we encourage the Commission to consider ways that relieve demand on utilities –– creating a reduction in infrastructure projects paid for by ratepayers –– and explore how to attract private investment that can support Indiana’s rapidly growing energy demand.

The Retail Energy Advancement League recommends that Indiana update policies and regulations to allow large energy users to procure their own electricity –– a buy your own power model –– to alleviate strain on utilities, limiting the need for new and costly ratepayer funded power generation.

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The post Energy Advocates Commend IURC for Investigating Electricity Affordability Concerns first appeared on Retail Energy Advancement League.

Just as homeowners deal with electric bills that can deliver real sticker shock, school districts face the same challenge.

A 2002 fact sheet from the U.S. Dept. of Energy found that K-12 schools nationwide were spending more than $6 billion annually on energy. In many school districts, the fact sheet states, energy costs were second only to salaries in district expenses.

Efforts to reduce energy costs for schools often focus on additional investments, such as facility upgrades or efficiency improvements. But what if there was another option to reduce costs –– an option on who supplies electricity to schools to secure a better price?

In the business community, companies often create aggregation programs to secure bulk purchasing power, better pricing, and more tailored energy products. This approach helps businesses better meet goals, specifically on cost with better price certainty.

Business Aggregation for Massachusetts Retailers

One example of this is the Retailers Association of Massachusetts (RAM) Fixed Rate Electricity Supply Program. RAM partners with a broker and an electric supplier to secure fixed-rate electric supply pricing for program participants, such as independent stores and restaurants. 

The program is designed to protect businesses against unexpected price fluctuations commonly experienced in the electricity market, enabling members to confidently budget their annual electricity costs and achieve savings compared to utility rates.

New Jersey school districts applied the same model in hopes of achieving the same results.

More Than 25 Years of Savings for New Jersey School Districts

In 1999, three major New Jersey education organizations joined together for ACES: the Alliance for Competitive Energy Services.

The New Jersey School Boards Association, New Jersey Association of School Business Organization, and NJ Association of School Administrators joined forces to capitalize on New Jersey’s energy market structure and offer a statewide program for all school districts to benefit from aggregate power purchases. 

After experiencing great success procuring electricity at cheaper prices, the Alliance began an aggregate program for natural gas procurement. 

Within a decade, the Alliance said ACES saved New Jersey school districts more than $250 million on energy bills.

Retail Aggregation Brings Results

The key benefit of business aggregation is that it provides entities with the economic benefits of bulk purchasing, such as reduced energy pricing and access to options otherwise only available to massive energy users.

Without a competitive market structure, schools and other public entities cannot leverage collective buying power — limiting cost savings and access to innovative energy solutions.

The post Energy Aggregation Isn’t Just for Businesses — Schools Benefit Too first appeared on Retail Energy Advancement League.