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 6701 NOTE PREPARED: Dec 22, 2021
BILL NUMBER: SB 248 BILL AMENDED:
SUBJECT: Distributed Energy Generation.
FIRST AUTHOR: Sen. Brown L BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill amends as follows the statute concerning electricity supplied to and
generated by an electricity supplier's customers who own a distributed generation facility:
(1) The bill specifies that "excess distributed generation" means the difference between: (A) the
kilowatt hours of electricity generated by a customer and supplied back to the electricity supplier;
and (B) the kilowatt hours of electricity delivered by the electricity supplier to the customer; as
netted over the monthly billing period.
(2) It provides for: (A) the billing or crediting, on a monthly basis, of a distributed generation
customer for the kilowatt hours of electricity received by or supplied by the customer, as applicable;
and (B) the rates at which the customer is to be credited or billed, as applicable, for those kilowatt
hours.
(3) It also makes conforming changes in other provisions of the statute.
The bill also adds a noncode provision to address electricity suppliers that have applied for approval, or
received approval, for an excess distributed generation rate or tariff from the Indiana Utility Regulatory
Commission (IURC) under current law, and to require that: (1) the IURC not approve any pending petitions
unless those petitions comply with the bill's provisions; and (2) an electricity supplier that has been granted
approval by the IURC of an excess distributed generation rate and tariff to file with the IURC, not later than
30 days after the enactment of the bill, an amended rate and tariff, so that both the rate and the tariff, as
amended, comply with the bill's provisions.
SB 248 1 Effective Date: Upon passage.
Explanation of State Expenditures: Indiana Utility Regulatory Commission (IURC): The bill’s
requirements related to the IURC’s review and approval of excess distributed generation rates or tariffs being
in compliance with the new definitions in the bill represent an increased workload on the agency. It is likely
that the provisions of the bill could be implemented by the IURC within existing resources.
Additional Information: The operating budget of the IURC is funded by regulated utilities operating in
Indiana. The IURC determines the rate at which to bill the utilities based on the agency’s budget, 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: To the extent that local units participating in excess distributed generation
have excess generation rates or tariffs changed by IURC decisions, there could be an indeterminable impact
on energy cost expenditures for those local units.
State Agencies Affected: Indiana Utility Regulatory Commission.
Local Agencies Affected: Local units participating in excess distributed generation.
Information Sources: 2021 Annual Report, Indiana Utility Regulatory Commission; 2020 Year End Net
Metering Reporting Summary, Indiana Utility Regulatory Commission.
Fiscal Analyst: Olivia Smith, 317-232-9869.
SB 248 2