WOWO EXCLUSIVE – Gov Braun discusses Utilities – Oversight and Gas Taxes with Kay;a

FORT WAYNE, Ind. — Mike Braun said elements of his administration’s energy affordability strategy are beginning to take shape, though many of the impacts have yet to be felt by consumers, during an appearance on Fort Wayne’s Morning News with Kayla Blakeslee.

Speaking on the program, Braun outlined changes to the Indiana Utility Regulatory Commission (IURC), recent actions by utilities, and a broader approach to managing the impact of large energy users such as data centers.

“For folks not familiar here with your energy affordability strategy, what exactly is it?” Blakeslee asked.

Braun responded that the strategy is still developing. “First of all, it’s all taking root, but you probably haven’t seen much of it,” he said. “I’m going to give you some upcoming stuff to look for.”

Regulatory changes and oversight

Braun said one of his first steps was reshaping the IURC, noting that three of the five commissioners have been replaced.

“There’s a new kind of sheriff in town on that board because three of the five have been replaced,” Braun said. “You’re going to see a lot of rate cases get done differently.”

He added that the appointees were selected for their understanding of state government and focus on ratepayer concerns. Braun described the commission’s past role as limited, saying it had been “docile and mostly a rubber stamp,” but indicated that oversight would increase going forward.

Utility actions and customer relief

Braun pointed to recent steps by utilities as early signs of change. He said NIPSCO has introduced short-term relief measures.

“NIPSCO has announced short-term relief measures like waived late fees and reduced reconnect deposits for customers,” he said.

He also referenced credits tied to electricity costs that customers in parts of northern Indiana may see reflected on their bills.

“These are things that are going to start showing that it’s not going to be the same way it’s been in the past,” Braun said.

Data centers and rate impacts

A central part of Braun’s strategy involves how new data centers are integrated into the power grid. He said future projects will be required to cover infrastructure costs and contribute additional generation capacity.

“The hyperscalers, the richest companies in the world that are going to use these for AI, are going to be paying for every penny of new construction,” Braun said. “And they’re going to be putting more electrons onto the grid to bring rates down.”

He acknowledged that earlier data center agreements, negotiated prior to his administration, have contributed to increased demand on the grid.

“The early data centers have been drawing it off the grid,” Braun said. “That’s where we’ve seen spikes… That’s not happening going forward.”

Braun added that some utilities are creating separate structures to isolate data center energy usage from residential and business customers.

“For instance, NIPSCO has created a separate entity within their power unit that they’re going to house any new data centers in,” he said.

Investigation into utility practices

Blakeslee also asked about concerns surrounding NIPSCO, including reports that the utility may have delayed disclosing overcharges to customers.

“What’s been your reaction to some of those concerns?” she asked.

Braun said the IURC has opened an investigation into multiple investor-owned utilities.

“They announced just recently an investigation into the five investor-owned utilities,” Braun said. “There’s an investigation going on now looking into the very thing you’re talking about.”

When asked about potential accountability, Braun said outcomes would depend on the commission.

“You’re going to see different responses, reactions, remedies, and a different dynamic than we’ve had before,” he said.

Gas prices and tax considerations

The conversation also addressed rising gas prices and whether a pause on the state gas tax is under consideration.

Braun said any such move would require legislative action unless tied to a specific emergency.

“In terms of pausing the gas tax, that would have to be approved by the legislature,” he said. “The governor can’t do it unless it’s an emergency based upon a shortage or some type of natural disaster.”

He noted that calling a special legislative session could be an option if high prices persist.

“All I could do is call the session,” Braun said. “If it would persist for a long time, that would be the consideration.”

Broader cost pressures

Braun attributed ongoing cost concerns in part to inflation in recent years.

“You’ve got to remember… we got… 25% inflation,” he said. “Inflation is the new baseline.”

He also cited global factors affecting fuel prices, including geopolitical tensions.

Outlook

Braun said many components of the strategy are still in early stages and may not yet be visible to consumers.

“None of that stuff you’re going to see,” he said, referring to new data center policies. “Any of the new ones, they’re going to be up against this approach.”

He indicated that changes to regulation, utility practices, and energy infrastructure are intended to influence rates over time, though no specific timeline for widespread consumer relief was provided.

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