Courtesy-Indiana Capital Chronicle FB page
INDIANAPOLIS – In one year, the state’s biggest utility companies disconnected 174,015 Hoosier households, turning off the lights and heat at a time when energy costs are growing faster than Hoosier paychecks.
The numbers come from a new report released by the Community Action Poverty Institute and Citizens Action Coalition earlier this month that focused on electricity needs, a component of overall energy consumption, and investor-owned utilities.
The report’s authors were highly critical of CEO compensation packages and “lucrative profit margins” at the state’s five biggest utility providers, including Indiana Michigan Power Company, AES Indiana, Northern Indiana Public Service Company, Duke Energy Indiana, and CenterPoint Energy Indiana.
The U.S. Energy Information Administration reported that the combined profits of these investor-owned companies were $3.8 billion from residential electricity in 2022, while the average CEO compensation package was $18 million, according to the report.
At the same time, low-income households dedicate 7% or more of their income toward electric costs, on average, and are six times more likely to have their utilities disconnected. In all, just over 13% of Hoosier households were disconnected at least once and 48% of households earning less than $20,000 annually forgo other household needs to pay for electricity.
Additionally, women-led or minority households are more likely to be electricity burdened, meaning they’re more likely to spend a greater portion of their income on utilities.
“We all need a home for our families that can be a safe temperature in summers and winters, and where we can cook and refrigerate food as part of our daily routine. High electricity costs threaten these essential functions by forcing consumers to choose between food, healthcare, and electricity in both a cost of living crisis and climate change,” said Zia Saylor, a researcher at the Indiana Community Action Poverty Institute. “This publication highlights how high electricity costs exacerbate energy burden and draws attention to policy solutions including statewide affordability assistance and limitations on disconnections.”
Such solutions include expanding energy assistance program funds and a state-implemented cap on energy bills at 6% of a household’s net annual income.
Read more about the growing concerns and possible solutions in the Whitney Downard story for the Indiana Capital Chronicle, here.
