Author Archives Laura Arnold

Statehouse File Analysis: Pence’s specific legislative agenda remains murky; IndianaDG asks: Why new Energy Office?

Posted by Laura Arnold  /   February 04, 2013  /   Posted in Uncategorized  /   No Comments

Personally, I would like to echo Lesley Weidenbener's analysis about Indiana Governor Pence's state legislative agenda. I was hoping to get more details in the Governor's State of the State address given on 1/22/2013. If you missed his State of the State address, you can read his prepared remarks and/or watch a video here http://www.in.gov/gov/2013stateofstate.htm. I was watching and I don't think I missed it.  There was nary a mention of energy and/or utility issues.

There was one sentence in Pence's remarks that did address one of his Executive Orders as follows:

"That's why on day one of our administration, I signed a moratorium on any new regulations to ensure that Indiana is not burdening Hoosier employers with unnecessary red tape."

You can read the entire text of this Executive Order here

Executive Order 13-03
Promotion Job Creation, economic development, and freedom by ordering a moratorium on regulations

Reading this Executive Order you might think that Governor Pence took the reins of Indiana state government from some liberal free-wheeling politician who had thwarted the private sector and therefore, a complete do over of all pending or draft regulations was needed. Surely, Pence wasn't talking about the administration of his predecessor former Governor Mitch Daniels. If ever there was a duplication of efforts and increased "red tape", this moratorium is a total duplication of effort and in my humble opinion a slap in the face of the Daniels Administration.

Let me move on to an issue more on point for the interests of IndianaDG readers--creation of a new energy office. Another Executive Order is as follows:

Executive Order 13-06
Creation of the Indiana Office of Energy Development

You might ask yourself "Don't we already have an Office of Energy Development (OED)?" The answer to your question would be "Yes, there is currently an Office of Energy Development housed by state law under the Lt. Governor." So why is Governor Pence proposing to move this office and what does he want to do differently?

To implement this particular Executive Order, Sen. Ed Charbonneau introduced SB 529 and has scheduled a Senate Environmental Affairs Committee hearing 2/4/2013. See http://wp.me/p37Lx8-136

More details as information unfolds.

Laura Ann Arnold

By Lesley Weidenbener
TheStatehouseFile.com

Lesley Weidenbener, managing editor, The Statehouse File

Lesley Weidenbener, managing editor, The Statehouse File, February 2, 2013

INDIANAPOLIS – Scott Pelath was mostly having fun. I’m convinced of it.

Analysis button in JPGThe House minority leader – a Democrat from Michigan City – gathered reporters in his office on Friday to criticize Republican leaders for failing to do enough to create jobs now.

But he was smiling even as he did it. After all, he had to acknowledge that he’s working with House Speaker Brian Bosma, R-Indianapolis, on legislation that is meant to align the state’s education and training efforts more closely to the types of skills that Indiana businesses are seeking.

And even the bills that Pelath said Republicans should be pushing would do little to actually create jobs immediately.

Still, as he talked about the GOP’s leadership failures, Pelath hit on a question that has started swirling around the Statehouse: What is Gov. Mike Pence doing?

I don’t mean that literally. According to his public schedule – a far more complete report of Pence’s activities than former Gov. Mitch Daniels ever released – the Republican has been talking with lawmakers, meeting with Democrat Superintendent of Public Instruction Glenda Ritz and traveling through Southern Indiana.

What Pelath and others at the Statehouse really mean is this: What is Pence seeking to do as governor?

The obvious answer is that he’s trying to cut the state’s income tax by 10 percent. That appears to be his boldest legislative agenda item, even though leaders of the House and Senate have been pretty skeptical about the idea.

But no one really knows for sure – or those who do know just aren’t saying – whether there’s much more on the agenda. The Pence administration has yet to identify which specific bills he’s backing.

It’s clear Pence supports many of the provisions in an education bill that would expand private school vouchers and create a tax break for donations to a preschool scholarship program. And Sen. Dennis Kruse, R-Auburn, is his carrying the governor’s proposal to bolster the state’s vocational education programs.

There’s a tort reform bill that Pence apparently was backing – until he wasn’t – although neither he nor his office ever verified it.

And there’s… Well. I’m not sure what else.

I asked Pence’s team on Friday for a list of the bills he’s supporting or that make up his agenda and never heard back.

That’s not unheard of. I don’t recall that Republican Gov. Mitch Daniels – who left office last month – ever released lists of his legislation. I remember that former Gov. Frank O’Bannon did in some years and not others. And I recall that then-Gov. Evan Bayh used to release a more complete agenda with his State of the State address than did the governors who came after him.

But in most years, I had a pretty good idea what Daniels and O’Bannon wanted to accomplish. Daniels in particularly reveled in telling anyone who would listen about what he hoped to achieve in each legislative session.

So it’s interesting to try to adjust to a new governor that – at least so far – hasn’t expressed a lot of public interest in getting much of anything from the General Assembly. Maybe that’s because he doesn’t feel he needs much from lawmakers. Maybe he’s being secretive.  I don’t know.

According to Pelath, many lawmakers don’t know either. And that could be a problem for the new governor – and whatever he’s trying to accomplish.

Lesley Weidenbener is managing editor of TheStatehouseFile.com, a news website powered by Franklin College journalism students.

 

Senate Environmental Affairs Committee to hear bill 2/4/13 to create new Indiana Office of Energy Development

Posted by Laura Arnold  /   February 04, 2013  /   Posted in Uncategorized  /   No Comments

The Senate Environmental Affairs Committee is scheduled to hear SB 529 to create an Indiana Office of Energy Development as follows:

DATE:  Monday, February 4, 2013

TIME:  10:00 am EST

PLACE:  Room 233, State House, 200 W. Washington St., Indianapolis, IN 46204

AGENDA:

SB 586 IDEM Certified Mail-- ***NO PUBLIC TESTIMONY; AMEND AND VOTE ONLY***

SB 529 Office of energy development

Watch on-line HERE  > http://www.in.gov/legislative/2441.htm then Please select Video Stream on the pull-down menu for Senate Room 233.

SB 529 Digest: Office of energy development. Establishes the Indiana office of energy development (office) within the office of the governor. Provides that the director of the office is the chief energy officer of the state. Provides that the office administers: (1) the alternative fuel fueling station grant program; (2) the alternative fuel vehicle grant program for local units; (3) home energy assistance and weatherization programs; (4) the energy development fund; (5) a low interest revolving loan program in consultation with the Indiana recycling market development board; (6) the Indiana coal research grant fund; (7) the green industries fund, in consultation with the Indiana economic development corporation; (8) the office of alternative energy incentives and the alternative energy incentive fund; (9) the E85 fueling station grant program, in consultation with the Indiana department of agriculture; and (10) the center for coal technology research and the coal technology research fund. Transfers the powers, duties, assets, liabilities, and rules relating to energy and energy development from the following entities to the office: (1) The lieutenant governor. (2) The center for coal technology research. Provides that the office may adopt rules to carry out its responsibilities. Abolishes duties of the lieutenant governor relating to energy policy. Makes conforming amendments.

Bill: http://www.in.gov/legislative/bills/2013/PDF/IN/IN0529.1.pdf

Fiscal: http://www.in.gov/legislative/bills/2013/PDF/FISCAL/SB0529.002.pdf

Senate Environmental Affairs Committee Members:

Chair: 

Sen. Edward Charbonneau (R-Valparaiso); s5@in.gov or (317) 232-9494

Members:

Sen. Jean Leising (R-Oldenburg) R.M. #, s42@in.gov or (317) 232-9054

Sen. Phil Boots (R-Crawfordsville), s23@in.gov or 317-234-9054

Sen. Doug Eckerty (R-Yorktown), s26@on.gov or (317) 232-9426

Sen. Susan Glick (R-LaGrange), s13@in.gov or (317) 232-9493

Sen. Travis Holdman (R-Markle), s19@in.gov or (317) 232-9807

Sen. Scott Schneider (R-Indianapolis), s30@in.gov or (317) 232-9808

Sen. Mark Stoops (D-Bloomington) R.M.M., s40@in.gov or (317) 232-9847

Sen. Jean Breaux (D-Indianapolis) #, s34@in.gov or (317) 232-9534

Sen. Lonnie Randolph (D-East Chicago) #, s2@in.gov or (317) 232-9532

# = denotes also a member of Senate Utilities Committee

R.M. = Ranking Member

R.M.M. = Ranking Minority Member

 

IndyStar: Indiana legislature bill (SB 560) would make it easier for utilities to raise rates

Posted by Laura Arnold  /   February 01, 2013  /   Posted in Uncategorized  /   No Comments

Sen. Utilities Committee photo

The Indiana Senate Utilities Committee met on 1/31/2013 for nearly three hearings on SB 560 dealing with several utility issues in a standing room only committee room of the State House. Sen. Jim Merritt (R-Indianapolis) who chairs the committee asked opponents to testify first before the proponents after allowing Sen. Brandt Hershman (R-Buck Creek) to explain SB 560 and his three proposed amendments. Opponents to SB 560 ranged from statewide consumer and utility watchdog group Citizens Action Coalition, the Sierra Club and the Hoosier Environmental Council to the Indiana Industrial Energy Consumers (INDIEC) comprised of large manufacturing companies including members companies ArcelorMittal, Steel Dynamics and Nucor Steel. These groups focused their opposition to creation of a new tracker mechanism, changes in the test year for basing rate case filings and shifting risk from utility shareholders to monopoly ratepayers. Their testimony was very detailed and extensive drawing from specific experience in recent utility rate proceedings before the Indiana Utility Regulatory Commission (IURC). The opponents presented facts and figures as well as espousing how SB 560 violated the basic premise of balancing the interests of ratepayers with utility shareholder interests.

Indiana Propane Gas Association and several of their members specifically opposed the portion of the bill allowing natural gas utilities to build gas pipelines, etc. to connect rural Indiana customers not currently receiving natural gas service. These propane companies alleged that the language in SB 560 would allow natural gas utilities to extend service where it is uneconomic to do so and to make the other captive ratepayers to essentially provide an interest free loan to allow the gas utility to expand its service territory and increase its customer base at the expense of their members.

A representative of LS Power Development LLC addressed anti-consumer and anti-competitive aspects of the transmission language currently in Section 9 of the bill as well. LS Power described the impact of SB 560 on future transmission construction and how the proposed legislation addressed issues from the 2011 Federal Energy Regulatory Commission (FERC) Order 1000.

The primary proponents of SB 560 were Ed Simcox representing the Indiana Energy Association (IEA) which is the trade association for the investor-owned electric and natural gas utilities. NIPSCO VP Frank Shambo also testified supporting the bill. The association for the rural electric co-ops and a representative of the Indiana Farm Burueau also supported the bill.

The committee, however, voted 8-2 DO PASS as amended with all the Republican members voting for the bill plus Sen. John Broden (D-South Bend). Sen. Jean Breaux (D-Indianapolis) and Sen. Lonnie Randolph (D-East Chicago) both voted against the bill. The bill nows goes to the full Senate for second reading where it can be amended again and then third reading or final passage both which could take place as early as next week.

Laura Ann Arnold

This is link to an Indianapolis Star video of Sen Hershman and Kerwin Olson. Watch.
http://www.indystar.com/videonetwork/2132827938001/Debate-over-Senate-utility-legislation

Written by Tony Cook, Indianapolis Star, Jan 31, 2013

A wide-ranging bill that would make it faster and easier for Indiana utilities to raise rates received support Thursday from a state Senate committee.

The Utility Committee voted 8-2 to support Senate Bill 560. The bill, proposed by Sen. Brandt Hershman, R-Buck Creek, would make several changes to how electric and natural gas rates are established.

The bill would change the ratemaking process for distribution upgrades, such as replacing power lines or natural gas pipelines. Right now, utilities get a rate of return on those improvements through base rate cases, which are extensive full-scale reviews of the company’s expenses and revenues that can take more than a year. Under the bill, utilities could seek rate increases more frequently for individual projects through a smaller-scale review process known as “tracking.”

Opponents say the change would make it easier for utilities to hike customers’ rates. Proponents say it would prevent “rate shock” by allowing smaller, incremental rate increases.

The bill also would limit the amount of time state regulators have to approve base rate cases to 300 days. Currently, those cases sometimes take 18 months. Utility companies say the measure would make the regulatory process more efficient, but consumer advocates worry regulators and others wouldn’t have enough time to fully vet requested rate increases.

The bill also contains other measures, including some intended to boost economic development and extend natural gas pipelines into more rural areas of the state. Opponents complain those measures would force existing ratepayers to subsidize new development.

Call Star reporter Tony Cook at (317) 444-6081 and follow him at twitter.com/indystartony.

CAC’s Kerwin Olson: Dueling energy proposals bear monitoring at Indiana State House; How will they impact you?

Posted by Laura Arnold  /   January 31, 2013  /   Posted in Office of Utility Consumer Counselor (OUCC), Uncategorized  /   No Comments

Dear IndianaDG Readers:

In any attempt to bring you a variety of viewpoints on energy and utility issues that will impact renewable energy and distributed generation, please find below a pieve written by Kerwin Olson who is the Executive Director of Citizens Action Coalition.

Just a friendly reminder, SB 560 will be heard this morning (1/31/2013) in the Senate Utilities Committee starting at 9 am. You can watch on-line. Please visit this previous post for details http://wp.me/pMRZi-12b.

As of last night there were three proposed amendments circulating which may or may not be offered to SB 560.

Laura Ann Arnold

http://www.journalgazette.net/article/20130131/EDIT05/301319991/1021/EDIT

Published: January 31, 2013 3:00 a.m.

Dueling energy proposals bear monitoring

Kerwin Olson

The fate of monthly utility bills and the future of Indiana energy policy will be a hot topic of discussion in the Indiana General Assembly.

Once again, the proposed coal-to-gas plant to be built in Rockport by Indiana Gasification will be the subject of legislation. Two companion bills, SB 510 (authored by Sen. Doug Eckerty – R, Yorktown) and HB 1515 (authored by Rep. Suzanne Crouch – R, Evansville) promise to protect consumers from what are certain to be excessive charges for the substitute natural gas to be produced by the proposed facility. By making this the law of our state, captive Hoosier ratepayers will be protected from being gouged by an Enron-like scheme that promises hefty returns for a privately held, out-of-state hedge fund.

Conversely, SB 560 (authored by Sen. Brandt Hershman, R, Monticello) guarantees that captive gas and electricity ratepayers will face enormous bill increases; the legislation eliminates regulatory protections to which captive consumers are entitled. SB 560 will shift almost all of the costs and risk of operating a monopoly utility company to captive ratepayers and away from voluntary investors. Additionally, SB 560 would allow the monopoly utilities to raise rates virtually automatically and would further reduce regulatory oversight by placing unreasonable time restrictions on both the Indiana Utility Regulatory Commission and the Office of Utility Consumer Counselor to review requests by the monopoly utilities to raise your rates. Should SB 560 become law, monopoly utility profits will become excessive as the utilities will have little incentive to control costs while the more expensive, risky and obsolete technologies will continue to be chosen over cheaper, cleaner and less risky alternatives.

Every branch of government is being asked to do more with less. The public is struggling with stagnant and diminishing wages, while monthly electric bills have increased nearly 50 percent over the last decade, and the cost of living continues to soar, especially for essentials such as food and health care. Meanwhile, the monopoly electric and gas utility companies in Indiana are working hard to undermine regulatory oversight and are attempting to deregulate their monopoly revenue and profits. They are asking your elected officials for a raise, and they want it to come from your checkbook. While everyone else is being forced to tighten their belts and the working class and vulnerable populations struggle to survive, the monopoly utilities parade around the halls of government with unfettered access working to increase their monopoly revenue and profits at the expense of the public.

It should be interesting to observe the now Republican-dominated General Assembly and a newly elected governor with no Statehouse experience navigate the two paradigms. Will they allow the monopoly utilities with their deep pockets to control the agenda and the future of Indiana energy policy, or will they stand up for consumers, keep the utilities in check and protect the public interest? We’ll learn the answer during what promises to be a long and contentious 2013 General Assembly session. Stay tuned.

Kerwin Olson is executive director of Citizens Action Coalition in Indianapolis. He wrote this for Indiana newspapers.

SB 560 Hearing in Senate Utilities Committee on 01/31/2013 at 9 AM in Room 233 of Indiana State House

Posted by Laura Arnold  /   January 28, 2013  /   Posted in Uncategorized  /   No Comments

SB 560 has been posted for a hearing in the Senate Utilities Committee as follows:

WHO:                   Indiana Senate Utilities Committee

WHAT:                 Committee Hearing on SB 560

WHEN:                 Thursday, January 31, 2013 starting at 9 AM until ???

WHERE:               Room 233, State House, 200 W. Washington St., Indianapolis, IN 46204

Watch the Senate Utilities Committee hearing on-line. Please visit http://www.in.gov/legislative/2441.htm and then select Senate Room 233 from the pull down menu.

For information on SB 560 please see this earlier blog post at http://wp.me/pMRZi-11b.

If your State Senator is a member of the Senate Utilities Committee, please contact them BEFORE the hearing and tell them that SB 560 as currently written WILL NOT help renewable energy and distributed generation.

Please contact me if you are interested in receiving a fact sheet on SB 560 explaining why it will not help renewable energy and distributed generation. We fully expect major amendments to be offered in committee to change the bill. The amendment may even be a complete STRIP AND INSERT. We will try to keep you posted as information becomes available.

Indiana Senate Utilities Committee Members:

Senator Jim Merritt (R-Indianapolis), Chair, s31@in.gov or (317) 232-9533

Senator Dennis Kruse (R-Auburn), R.M., s14@in.gov or (317) 233-0930

Senator Rod Bray (R-Martinsville), s37@in.gov or (317) 232-9466 

Senator Mike Crider (R-Greenfield),  s28@in.gov  or (317) 232-9463

Senator Jean Leising (R-Oldenburg), s42@in.gov or (317) 234-9054

Senator Jim Tomes (R-Blairsville), s49@in.gov or (317) 232-9414

Senator Carlin Yoder (R-Goshen), s12@on.gov or (317) 232-9984

Senator Jean Breaux (D-Indianapolis), R.M.M., s34@in.gov or (317) 232-9534

Senator Lonnie Randolph (D-East Chicago), s2@in.gov or (317) 232-9532

Senator John Broden (D-South Bend). s10@in.gov or (317) 232-9423

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