21st Century Energy Task Force

The Indiana 21st Century Energy Task Force (Task Force) was initially formed from House Enrolled Act 1278 in 2019 and reestablished in 2021 by House Enrolled Act 1220 to explore the impact that fuel transitions and emerging technologies may have on the state’s electric system. The Act created the Task Force, which is tasked with identifying energy policy recommendations for the House focused on affordability and reliability of future electric utility service.

One of the inputs for the Task Force’s deliverables in 2020 is a comprehensive study of the impacts of fuel transitions and emerging technologies across Indiana. The Indiana Utility Regulatory Commission (IURC) was tasked with producing this study of the statewide impacts of fuel transitions and emerging technologies on generation capacity, reliability, resilience, and rates. The IURC divided the study into two components: (1) generation, transmission and (2) distribution. The State Utility Forecasting Group led the assessment of impacts on generation capacity, costs, and reliability, while Lawrence Berkeley National Laboratory (LBNL) and Nexant, Inc. (Nexant) led the assessment of impacts on distribution systems.

Statutory Directive

Under IC 2-5-45.1-6, the Task Force is required to study the following:

1. The management of stranded utility assets, including (A) the use of securitization to recover stranded utility costs associated with legacy generation units; and (B) the establishment of an annual reporting requirement that would require cooperatively owned power suppliers to annually report to the Indiana utility regulatory commission information concerning stranded costs.
2. Methods to assure fairness to all customer classes in retail electric rate structures, including alternative rate designs, such as time-of-use pricing, real-time pricing, and critical peak pricing.
3. Appropriate regulation of the deployment of distributed energy resources, consistent with Federal Energy Regulatory Commission Order No. 2222 (172 FERC 61,247
   (2020)).
4. The impact on communities of utility plant or fuel source site closures.
5. The status of energy efficiency efforts in Indiana, and the potential development of a statewide energy efficiency plan.
6. Energy issues affecting: (A) low income communities; and (B) communities of color; in relation to business and employment opportunities in those communities.
7. The potential use of "green zones", or "energy investment districts", that: (A) are established in: (i) low income communities; or (ii) communities of color; that have experienced inequitable environmental and economic hardships; and (B) provide financial and technical assistance to develop local renewable energy resources.
8. Methods for the state to encourage electricity storage technology research.
9. The impact of large scale electric vehicle deployment on electric grid capacity and reliability.
10. Electric vehicle charging station ownership and responsibility.
11. Demand response and pricing systems that incentivize temporal shifting of electric load.

The Task Force may also further examine any of the issues set forth by the 2019-2020 Task Force that are necessary to study the above topics or to issue the report required by IC 2-5-45.1-7.

Under IC 2-5-45.1-7, the Task Force is required to develop recommendations and issue a report for the Indiana General Assembly and the Governor concerning the issues set forth in IC 2-5-45.1-6 (described above). Not later than November 1, 2022, the Task Force shall submit the report to the following:

1. The Executive Director of the Legislative Services Agency for distribution to the members of the General Assembly.
2. The Governor.
3. The Chair of the Indiana Utility Regulatory Commission.
4. The Utility Consumer Counselor.

2021 Task Force Meeting Dates

• August 18, 2021
• August 24, 2021
• September 8, 2021
• September 27, 2021 (cancelled)
• October 12, 2021
• October 26, 2021

For more information, please visit: http://iga.in.gov/legislative/2021/committees/21st_century_energy_policy_development_task_force

2020 Task Force Meeting Summaries

The 2020 Task Force final report, meeting materials, minutes, and archived video can be accessed by visiting: http://iga.in.gov/legislative/2020/committees/21st_century_energy_policy_development_task_force

• September 17, 2020. The Task Force heard testimony on:
  1. the role of energy in economic development, and the attributes of electric utility service and infrastructure that are important for Indiana's energy competitiveness; and
  2. electric generation cost drivers.

• October 1, 2020. The Task Force received testimony concerning:
  1. retail tariff design and time-varying price structures;
  2. the role of regional transmission organizations (RTOs) in wholesale electricity markets;
  3. electric utility ratemaking and rate design;
  4. generation resource adequacy and reliability;
  5. the role of state energy policy in California's experience with rolling electricity brownouts; and
  6. price trends in deregulated versus regulated retail electricity markets.

• October 15, 2020. The Task Force heard testimony on:
  1. electric utility financing and credit quality, along with the use of securitization to recover stranded costs;
  2. the integrated resource plan (IRP) process for electric utilities;
  3. the annual resource adequacy survey by the Midcontinent Independent System Operator (MISO) and the Organization of MISO States (OMS);
  4. Michigan's resource adequacy law;
  5. the use of renewable energy resources in the manufacturing context;
  6. barriers to the deployment of renewable generation resources; and
  7. needed investments in electric transmission infrastructure.

• November 12, 2020. The Task Force received the following:
  1. A presentation from the Indiana Utility Regulatory Commission (IURC) concerning its study under IC 8-1-8.5-3.1 of the statewide impacts of: (A) transitions in the fuel sources and other resources used to generate electricity by electric utilities; and (B) new and emerging technologies for the generation of electricity; on electric generation capacity, system reliability, system resilience, and the cost of electric utility service for consumers.
  2. Testimony from various stakeholders as to topics or recommendations to be included in the Task Force's report under IC 2-5-45-8, including input from the business community, environmental justice advocates, the electric utility industry, industrial consumers, the coal industry, renewable resource developers, consumer advocates, and environmental interests.

• November 19, 2020. The Task Force's final meeting of the 2020 interim included:
  1. discussion among Task Force members of a draft of the Task Force?s statutory report under IC 2-5-45-8;
  2. the incorporation by staff of suggested modifications to the report; and
  3. a vote on the report, as amended.

2019 Task Force Meeting Summaries

2019 Task Force meeting materials can be found at: http://iga.in.gov/legislative/2019/committees/21st_century_energy_policy_development_task_force

• September 19, 2019. The Task Force received testimony concerning:
  1. demand requirements including future demand for electric utility service; and
  2. whether the concept of baseload demand is relevant in the changing electric industry.
• October 1, 2019. The Task Force received testimony on the functions of regional transmission organizations, followed by an information-gathering tour of the Midcontinent Independent System Operator (MISO) located in Carmel, Indiana.

• October 17, 2019. The Task Force received testimony on:
  1. the sources and optimization of electric generation resources;
  2. electric system reliability and resiliency at state and regional levels and
  3. limitations and modernization of the electric grid.
• October 31, 2019. This was the final meeting of the Task Force. Testimony received included information on
  1. transmission and grid modernization;
  2. solar energy;
  3. coal as a generating resource
  4. updates to the State Utility Forecasting Group (SUFG) 2019 biennial electricity forecast;
  5. land use issues surrounding electric generation facilities
  6. regulatory ratemaking principles and
  7. updates on the Indiana Utility Regulatory Commission (IURC) study of generation fuel source transitions and emerging technologies. Discussion by the Task Force included their work program during the 2019 legislative interim, along with plans for the 2020 interim and consideration of the Task Force’s 2019 information report.