Indiana Policy Info

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Overview - Energy in Indiana

Indiana uses coal for 94% of its electricity generation. Though Indiana produces over half of its total coal consumption through in-state mines, the net imports of coal to the state, from Wyoming, West Virginia, and Illinois, account for $974 million lost annually to the state's economy. 91% of coal used in Indiana is for electric generation, with most of the remainder used by the industrial sector especially in coke production.

A very small amount of natural gas is produced in Indiana, and a heavy reliance on natural gas for home heating in the state (65% of homes) means that residential customers bear most of the burden from natural gas imports. At the wholesale level, natural gas imports cost the state $4.2 billion annually; the cost for the residential, commercial, and industrial customers for gas delivered from the utilities is even higher.

Together, coal and natural gas account for $5.1 billion leaving the state economy to pay for imported energy fuel. This dollar drain on Indiana's economy could, by reducing energy consumption through energy efficiency, stay in Indiana to build the state economy, reduce customer bills, and provide opportunity for the growth of jobs in the clean energy sector.

Though Indiana does not have a strong history of energy efficiency, utilities within the state have been running voluntary programs and there is a growing movement to advance the state's building energy codes. The 2006 Hoosier Homegrown Energy Plan provided a policy roadmap for the state to achieve energy independence through a number of means including energy efficiency and conservation. Indiana is on the cusp of making the policy decisions that will save the state's residences and businesses money and energy for generations to come.

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Energy Efficiency Resource Standards

The Indiana Utility Regulatory Commission ordered on December 9, 2009 that the state's electric utilities file Demand Side Management (DSM) plans that will include proposals and progress for meeting a portion of the state's electricity needs with energy efficiency. Based on previous 3-year average sales, utilities will be required to meet a goal of 0.3% efficiency in 2010, ramping up an additional 0.2% yearly through 2018 (1.9%) and an additional 0.1% in 2019 to reach a total of 2.0% annual energy efficiency in the next 10 years. They also ordered the formation of initial DSM Core Programs to be offered by utilities throughout the state, and a DSM Coordination Committee that will issue RFPs for an Independent Third Party Administrator to oversee the Core Programs, and for an independent administrator to undertake Evaluation, Measurement & Verification (EM&V) for the program offerings.

IURC Cause No. 42693

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Decoupling

The Indiana Utility Regulatory Commission has the authority to approve alternate regulatory plans for Indiana utilities.

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Building Energy Codes

Residential

The Indiana Residential Code for residential buildings is based on the 2003 International Residential Code. However, it deletes the entirety of IRC Chapter 11 (energy efficiency) and substitutes it with an Indiana-specific code based on the outdated 1992 Model Energy Code (675 IAC 14-4.3-139).

A September 2009 proposal to update 675 IAC 14-4.3-139 Chapter 11; energy efficiency was disapproved with a vote of 20-3 on 10/1/2009. Work continues in the ad hoc code oversight committee to finalize a new proposal that will update the code to the 2009 IECC.