Manufacturers happier after bill that would create utility rate hikes was amended

INDIANAPOLIS (WLFI) - Some area manufacturers are changing their minds about a proposed bill in the statehouse that could make it faster and easier for utilities to increase rates. While at first they were vocally against it, they said progress has been made.

It's no secret that large manufacturers like Tate and Lyle, Caterpillar, and Subaru of Indiana Automotive use significant amounts of electricity. So some spoke out against a bill that would make it easier for utility rate hikes.

"They're concerned about rate hikes and about rate costs," said Sheila Klinker, State Representative (D-27).

Senate Bill 560 would change the process to determine rates for gas and electric companies' energy transmission and distribution upgrades. The bill would allow those companies to seek rate increases more often with a limited review process, or tracking. The process now, through the Indiana Utility Regulatory Commission, can be quite lengthy.

State Senator Brandt Hershman (R-7), who sponsored the bill, said the IURC would still have the final say.

"All rate changes, all investments are reviewed by the IURC after public notice and comment. We think that provides an opportunity for all affected parties to share their views and to come to a good conclusion on how we can best move Indiana forward," Hershman said.

As News 18 reported last week, Tate and Lyle spoke out against the bill in a public meeting. Company representatives said the bill is only part of an overall problem with increasing rates. It's a problem they said can prevent expansion opportunities across the state.

"Electricity and energy are huge components of our input costs. When those costs are not competitive, it makes it extremely difficult for Tate and Lyle to continue to invest and grow our facilities there," said Chris Olsen, Tate and Lyle spokesman.

After several amendments to the bill by the House Utility Committee, Olsen said the bill is more consumer and manufacturer friendly. He said legislators did a good job by balancing the bill between utilities and consumer interests.

Hershman said the bill will also create incentives to provide areas with natural gas that haven't had it before.
    
He said the bill will come up for a second reading in the House sometime next week.