LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington St., Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 6919 NOTE PREPARED: Feb 21, 2022 BILL NUMBER: HB 1111 BILL AMENDED: Jan 11, 2022 SUBJECT: Utility Regulatory Commission Reporting and Rules. FIRST AUTHOR: Rep. Soliday BILL STATUS: As Passed Senate FIRST SPONSOR: Sen. Koch FUNDS AFFECTED: GENERAL IMPACT: State XDEDICATED FEDERAL Summary of Legislation: The bill amends the statute concerning the required annual report by the Indiana Utility Regulatory Commission (IURC) to the Office of the Governor and the Legislative Council as follows: (1) The bill requires the IURC to present the annual report to the Interim Study Committee on Energy, Utilities, and Telecommunications before October 1 of each year. (2) It provides that the annual report must include certain information concerning: (A) the energy utility industry; (B) the water and wastewater utility industries; (C) the communications services industry; and (D) Indiana's pipeline safety program. The bill also makes conforming amendments to the statutes requiring the IURC to report annually to the committee concerning: (1) the energy utility industry; and (2) communications services. It makes other conforming amendments to Indiana Code sections referencing the IURC's annual report to the committee concerning communications services. The bill repeals Indiana Code provisions requiring the IURC to report annually to the committee concerning: (1) acquisitions under the statute concerning acquisitions of offered water or wastewater utilities; and (2) the Indiana Voluntary Clean Energy Portfolio Standard Program. The bill requires the IURC to adopt rules as the IURC determines necessary to implement Federal Energy Regulatory Commission Order No. 2222 concerning distributed energy resources and distributed energy resource aggregators. HB 1111 1 Effective Date: Upon passage; July 1, 2022. Explanation of State Expenditures: Indiana Utility Regulatory Commission (IURC): The bill makes changes to the required contents of the IURC’s annual report. It also requires the IURC to adopt rules as necessary concerning distributed energy resources and the implementation of related federal law. The requirements of the bill largely represent administrative changes for the IURC. The provisions of the bill would increase agency workload, but could likely be accomplished within existing resources. Additional Information - The operating budget of the IURC is funded by regulated utilities operating in Indiana. The rate at which to bill the utilities is based on the agencies' budgets, less reversions, divided by the total amount of gross intrastate operating revenue received by the regulated utilities for the previous fiscal year. Based on this formula, utilities are currently billed approximately 0.12% of their gross intrastate operating revenues to fund the IURC. Explanation of State Revenues: Explanation of Local Expenditures: Explanation of Local Revenues: State Agencies Affected: Indiana Utility Regulatory Commission. Local Agencies Affected: Information Sources: Fiscal Analyst: Jessica Harmon, 317-232-9854. HB 1111 2