SENATE BILL No. 102
DIGEST OF INTRODUCED BILL
Citations Affected: IC 8-1-2-6.9.
Synopsis: Utility recovery of federally mandated costs. Requires the
Indiana utility regulatory commission to allow an energy utility to
recover certain federally mandated costs through periodic retail rate
Effective: Upon passage.
January 5, 2011, read first time and referred to Committee on Utilities & Technology.
First Regular Session 117th General Assembly (2011)
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SENATE BILL No. 102
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 8-1-2-6.9; (11)IN0102.1.1. -->
SECTION 1. IC 8-1-2-6.9 IS ADDED TO THE INDIANA CODE
AS A NEW
SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6.9. (a) As used in this section, "energy
utility" has the meaning set forth in IC 8-1-2.5-2.
(b) As used in this section, "federally mandated costs" means
capital, operation, maintenance, depreciation, research and
development, tax, or carrying costs that an energy utility incurs in
complying with mandates that are, or with reasonable certainty
will be, imposed on the energy utility by the federal government
related to the following:
(1) Environmental laws, rules, regulations, or consent decrees,
including clean air standards and costs associated with:
(A) reducing or offsetting the emission of greenhouse
(B) the purchase of emission allowances.
(2) Renewable portfolio or energy efficiency standards,
including projects at existing generating facilities to allow for
fuel switching, including the use of natural or substitute
(3) Participation in one (1) or more industry reliability
organizations, including a regional transmission organization.
(4) Transmission and distribution pipeline integrity and
(c) An energy utility may petition the commission to recover
federally mandated costs through a periodic retail rate adjustment
mechanism. If the commission finds, after notice and hearing, that
an energy utility's proposed periodic retail rate adjustment
mechanism reasonably complies with this section, the commission
shall approve the periodic retail rate adjustment mechanism and
authorize the timely recovery of federally mandated costs by the
(d) The commission shall adjust any changes in charges
approved for an energy utility under section 42(d) or 42(g) of this
chapter or IC 8-1-13-30(d), as applicable, to permit the energy
utility to retain revenues resulting from a periodic retail rate
adjustment mechanism approved under this section.
SOURCE: ; (11)IN0102.1.2. -->
SECTION 2. An emergency is declared for this act.