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Indiana (US-IN)

Market Type: Hybrid (Limited Retail Choice)
SSS Relevance: ⭐⭐⭐ High
Grid Carbon Intensity: ~554 gCO₂/kWh

SSS Factors: significant nuclear capacity, hydroelectric resources, no mandatory RPS, regulated market structure

1. Overview​

Indiana operates a regulated electricity market where consumers cannot choose providers and are instead served by geographic monopolies overseen by the Indiana Utility Regulatory Commission (IURC) 1. The state’s generation mix is transitioning rapidly from its historical reliance on coal. While coal fueled 85% of the state's electricity in 2014, its share dropped to 42% by 2024, a gap largely filled by natural gas (41% of generation) and renewables 2.

Renewable Generation and Goals In 2024, renewable energy resources accounted for 15% of Indiana's total in-state electricity generation, up from 6% in 2018 3. The renewable mix is dominated by wind (11% of total generation) and solar (nearly 4%), with hydropower and biomass comprising the remaining 1% 3. Indiana ranks 3rd nationally for solar projects in development, with over 6,300 MW planned 3. Under a voluntary clean energy portfolio standard, participating utilities aim to source 10% of sold electricity from clean sources by 2025 3.

Grid Carbon Intensity Due to its continued heavy reliance on fossil fuels, Indiana's grid carbon intensity is significantly higher than the national average. The emission rate is approximately 554 gCO2eq/kWh (roughly 1,393 to 1,457 lbs CO2/MWh), compared to a national average of ~818 lbs CO2/MWh 4. Consequently, Indiana consistently ranks among the top 10 states for both total and per capita energy-related CO2 emissions 4.

Market Trends and Costs The state is experiencing surging demand driven by industrial growth and data center development, particularly in northern Indiana 1. This transition, coupled with the retirement of aging infrastructure, has led to rising costs. After decades of low rates, residential prices averaged approximately $0.17 per kWh as of February 2026 1. ⚠️ In response to these increases, the IURC launched an investigation into utility affordability in early 2026 1.

2. Market Structure​

Utility Types and Regulation Electricity service in Indiana is provided by three primary types of entities: investor-owned utilities (IOUs), municipally-owned utilities, and rural electric membership cooperatives (REMCs). The sector is largely regulated by the Indiana Utility Regulatory Commission (IURC) 5.

  • Investor-Owned Utilities (IOUs): These for-profit corporations serve densely populated areas and are authorized to earn a return on infrastructure investments. The five major electric IOUs are AES Indiana, CenterPoint Energy, Duke Energy Indiana, Indiana Michigan Power (I&M), and NIPSCO 5.
  • Municipally-Owned Utilities: These not-for-profit entities are owned by local governments. Most have "opted out" of IURC rate regulation, meaning local councils set pricing. Of the 72 municipal utilities in the state, many are members of the Indiana Municipal Power Agency (IMPA) for wholesale power supply 6.
  • Rural Electric Membership Cooperatives (REMCs): These member-owned, not-for-profit organizations primarily serve rural areas. Like municipal utilities, most REMCs have opted out of IURC rate regulation. They typically receive power from generation and transmission cooperatives such as Hoosier Energy or Wabash Valley Power Alliance 7.

Retail Choice and Deregulation Indiana’s electricity market remains fully regulated; residential and small business customers cannot choose their electricity supplier and must purchase power from the local utility monopoly 8. As of early 2026, legislative efforts are underway to introduce limited retail choice. Senate Bill 272 and House Bill 1276, introduced in January 2026, propose allowing large commercial and industrial users (using more than 1 megawatt annually) to purchase electricity from competitive suppliers starting in July 2027 8.

Transmission and ISOs The bulk electric transmission system is managed by two Regional Transmission Organizations (RTOs) that also function as Independent System Operators (ISOs):

  • Midcontinent Independent System Operator (MISO): Covers most of Indiana and manages the grid across 15 U.S. states. It is headquartered in Carmel, Indiana 9.
  • PJM Interconnection (PJM): Serves some utilities in Indiana, such as Indiana Michigan Power, coordinating movement across 13 states and the District of Columbia 9.

These organizations manage grid reliability, administer wholesale energy markets, and conduct long-term transmission planning. They are regulated by the Federal Energy Regulatory Commission (FERC), while the IURC oversees retail utility matters 10.

3. Clean Energy Policy​

Indiana does not have a mandatory Renewable Portfolio Standard (RPS) or a statutory statewide mandate for net-zero electricity. Instead, the state relies on a voluntary clean energy program and utility-specific targets.

Voluntary Clean Energy Portfolio Standard (CPS)​

Under Indiana Code 8-1-37, regulated electric utilities may voluntarily participate in the Clean Energy Portfolio Standard (CPS), also known as the CHOICE program. The current goal (Goal Period III) requires participating utilities to obtain 10% of their total electricity from clean energy resources by December 31, 2025 5. Unlike mandatory standards, there are no penalties for missing targets; however, utilities that meet the milestones can apply to the Indiana Utility Regulatory Commission (IURC) for an increased return on equity of up to 50 basis points 511.

Eligible Resources: Indiana defines "clean energy" broadly for this program. While at least 50% of the energy must be produced within the state, up to 30% of the goal can be met using non-renewable sources, including nuclear, clean coal technology, and natural gas that displaces existing coal generation 511.

Legislative Updates (2025–2026)​

Recent legislation has expanded the definition of clean energy and adjusted siting requirements:

  • Natural Gas Definition: In April 2025, Governor Mike Braun signed SEA 178, explicitly defining natural gas and propane as "clean energy" or "green energy" to qualify for federal grants 12.
  • Nuclear Reactors: SEA 423 and SEA 424 allow utilities to pass development costs for Small Modular Nuclear Reactors (SMRs) to customers, even if the projects are not completed 12.
  • Capacity Replacement: HB 1007 requires utilities seeking to close coal plants to replace them with equivalent capacity, potentially complicating transitions to variable renewable sources 13.

Net Zero and Climate Goals​

Statewide climate goals are driven by the Priority Climate Action Plan (2024), which aims for 40% of energy to come from wind and solar by 2050 14. Major investor-owned utilities have set individual decarbonization timelines:

  • CenterPoint Energy: Net-zero Scope 1 and certain Scope 2 emissions by 2035.
  • AES Indiana: Net-zero emissions from electricity sales by 2040; total net-zero by 2050.
  • Indiana Michigan Power (AEP): 80% reduction by 2030; net-zero by 2045.
  • Duke Energy Indiana: Net-zero carbon emissions by 2050 15.

Constraints and Challenges​

  • Net Metering: Following a 2017 law (SB 309), retail-rate net metering was phased out. As of 2022, major utilities moved to an Excess Distributed Generation (EDG) program, which compensates solar owners at lower, wholesale-style rates 13.
  • Demand and Reliability: High coal consumption remains prevalent, and surging demand from AI data centers has led some utilities to delay coal plant retirements or build new natural gas plants 16.
  • Solar Incentives: The federal 30% residential solar tax credit expired for new homeowner-purchased systems on December 31, 2025 12. ⚠️ Note: Search results mention "Senate Bill 74" regarding plug-in solar units was stalled as of early 2026; current status is uncertain.

4. Utility Landscape​

Indiana's electric service is provided by a mix of investor-owned utilities (IOUs), electric cooperatives, and municipal utilities. The market is dominated by five major vertically integrated IOUs, which serve the vast majority of the state's residents and businesses and are regulated by the Indiana Utility Regulatory Commission (IURC) 5.

Investor-Owned Utilities (IOUs) The five largest electric IOUs include 17:

  • Duke Energy Indiana: The largest electric supplier in the state, serving approximately 920,000 customers across 69 counties, primarily in central and southern Indiana 18.
  • AES Indiana (formerly Indianapolis Power & Light): Serves more than 511,000 customers in the greater Indianapolis area. ⚠️ As of March 2026, a potential acquisition of AES Indiana by Global Infrastructure Partners has been a subject of state regulatory discussion 18.
  • NIPSCO (Northern Indiana Public Service Company): A subsidiary of NiSource serving the northern third of the state with approximately 477,000 electric customers 18.
  • Indiana Michigan Power (I&M): A subsidiary of American Electric Power (AEP), serving roughly 470,000 customers in northeast and north-central Indiana, including Fort Wayne and South Bend 18.
  • CenterPoint Energy (formerly Vectren): Serves approximately 148,000 electric customers in southwest Indiana, centered around Evansville 18.

Electric Cooperatives There are 38 Rural Electric Membership Cooperatives (REMCs) serving members in 89 of Indiana's 92 counties. These private, not-for-profit entities are owned by the members they serve and typically operate in rural areas. Most receive wholesale power through generation and transmission cooperatives such as Hoosier Energy or Wabash Valley Power Alliance 19.

Municipal Utilities Indiana has 72 municipally-owned electric utilities, which are owned and operated by local city or town governments. Of these, 61 are members of the Indiana Municipal Power Agency (IMPA), a joint action agency that allows municipalities to pool resources for power purchasing. Notable municipal providers include Anderson Municipal Light & Power, Auburn Electric, and Richmond Power & Light 20.

5. SSS-Eligible Resources​

No specific SSS-eligible resources identified. See section notes.

6. EAC/REC Registry Infrastructure​

Indiana does not operate a state-specific Renewable Energy Certificate (REC) registry. Instead, the state relies on regional tracking systems to issue, track, and retire Energy Attribute Certificates (EACs) based on a project's location and grid interconnection 2122.

Primary Tracking Systems​

  • M-RETS (Midwest Renewable Energy Tracking System): This is the dominant registry for Indiana and the broader Midwest region. It is used by most utilities in the state to track environmental attributes for voluntary markets and state compliance programs 2123.
  • PJM-GATS (Generation Attribute Tracking System): Operated by PJM Environmental Information Services, this system is used by entities located within the PJM Interconnection territory, which includes portions of northern and eastern Indiana (e.g., Indiana Michigan Power) 2122.
  • NAR (North American Renewables Registry): A national, all-resource registry utilized by some Indiana participants for voluntary REC tracking outside of specific regional system requirements 22.

Utility Programs and Verification​

Major Indiana utilities, including Duke Energy, NIPSCO, and Indiana Michigan Power, utilize these registries to support voluntary "Green Power" programs 2122. The Wabash Valley Power Alliance (WVPA) was the first Indiana utility to earn Green-e Energy Certification for its REC products, providing third-party verification to prevent double-counting 2422.

Policy Context​

While Indiana lacks a mandatory Renewable Portfolio Standard (RPS), it maintains a voluntary Clean Energy Portfolio Goal. Tracking systems like M-RETS and PJM-GATS are used to document progress toward these targets 25.

7. Grid Emissions​

Grid Carbon Intensity: 554 gCO₂eq/kWh (annual average)

Generation Mix​

Scope 2 Reporting​

  • SB 253 requires Scope 2 reporting for companies >$1B revenue

Source: EPA eGRID, EIA, state regulatory filings

References​

Sources & Last Updated​

Research Date: 2026-03-09
Data Sources: EIA, EPA eGRID, state regulatory filings, SerpAPI research aggregation

This page was generated using automated research and may contain inaccuracies. Verify critical data with primary sources.

Footnotes​

  1. Search result 3 ↩ ↩2 ↩3 ↩4

  2. Search result 1, Search result 3 ↩

  3. Search result 1 ↩ ↩2 ↩3 ↩4

  4. Search result 2 ↩ ↩2

  5. IN.gov ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  6. IN.gov +3, www.impa.com ↩

  7. IN.gov +2, Indiana Connection ↩

  8. Quick Electricity ↩ ↩2

  9. LinkedIn ↩ ↩2

  10. Federal Energy Regulatory Commission (.gov) +2, Federal Energy Regulatory Commission (.gov) ↩

  11. DSIRE ↩ ↩2

  12. The Indianapolis Star ↩ ↩2 ↩3

  13. WFYI ↩ ↩2

  14. State Climate Policy Dashboard ↩

  15. Duke Energy ↩

  16. Indiana Daily Student ↩

  17. Wikipedia ↩

  18. Citizens Action Coalition ↩ ↩2 ↩3 ↩4 ↩5

  19. Indiana Electric Cooperatives ↩

  20. www.impa.com ↩

  21. Ecohz ↩ ↩2 ↩3 ↩4

  22. U.S. Environmental Protection Agency (.gov) ↩ ↩2 ↩3 ↩4 ↩5

  23. Carbon Solutions Group ↩

  24. Green-E ↩

  25. 3Degrees ↩