Supreme Court sides with utility in solar case

BY THE INDIANA CAPITAL CHRONICLE

INDIANAPOLIS The Indiana Supreme Court on Wednesday decided a key solar power case in favor of a southern Indiana utility, ending certain benefits for small panel owners but taking pressure off ratepayers who don’t own panels.

Vectren Energy now part of CenterPoint Energy and Indiana’s utility regulator had argued a new subsidy scheme follows a 2017 state law, while utility consumer advocates said the methodology wasn’t legal, and would shortchange Hoosiers who generate more energy than they consume.

Before 2017, when ratepayers with solar power panels generated excess electricity, utilities reimbursed them at retail rates at the end of each billing cycle. The commission established that 1-to-1 credit system in 2004 to boost solar panel adoption at a time when the technology was newer and more expensive.

But because utilities typically buy energy at significantly cheaper wholesale prices and sell it at higher retail prices to cover costs, ratepayers without solar panels subsidized the 1-to-1 credit deal.

Senate Bill 309 reshaped that system, cutting reimbursement to 125% of the wholesale rate and setting a timeline for utilities to phase it out completely.

—— The Indiana Capital Chronicle (indianacapitalchronicle.com/) is an independent, not-for-profit news organization that covers state government, policy and elections.

For more on this story, see Saturday’s Republic.