IN
Indiana Senate Bill SB0009

Indiana 2023 Regular Session

Indiana Senate Bill SB0009 Compare Versions

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1+*ES0009.1*
2+March 14, 2023
3+ENGROSSED
4+SENATE BILL No. 9
5+_____
6+DIGEST OF SB 9 (Updated March 14, 2023 1:47 pm - DI 101)
7+Citations Affected: IC 8-1.
8+Synopsis: Energy utilities. Amends the Indiana Code chapter
9+concerning federally mandated requirements for energy utilities as
10+follows: (1) Specifies that for purposes of the statute, "federally
11+mandated costs" include the following: (A) Costs that an energy utility
12+has incurred, or estimates that it will incur, in connection with a
13+compliance project. (B) Costs that are directly related to the
14+preparation and conduct of a regulatory proceeding. (C) Costs related
15+to a compliance project and incurred by an energy utility before the
16+date of: (i) the energy utility's application to the Indiana utility
17+(Continued next page)
18+Effective: Upon passage.
19+Leising, Koch, Glick, Tomes,
20+Randolph Lonnie M, Becker
21+(HOUSE SPONSORS — SOLIDAY, MANNING)
22+January 17, 2023, read first time and referred to Committee on Utilities.
23+February 23, 2023, amended, reported favorably — Do Pass.
24+February 27, 2023, read second time, ordered engrossed. Engrossed.
25+February 28, 2023, read third time, passed. Yeas 40, nays 9.
26+HOUSE ACTION
27+March 6, 2023, read first time and referred to Committee on Utilities, Energy and
28+Telecommunications.
29+March 14, 2023, amended, reported — Do Pass.
30+ES 9—LS 7008/DI 101 Digest Continued
31+regulatory commission (IURC) for a certificate of public convenience
32+and necessity (certificate) with respect to the compliance project; or (ii)
33+the IURC's order with respect to the application; if the IURC finds the
34+costs are just and reasonable. (2) Provides that an energy utility's
35+application for a certificate for a compliance project must be filed
36+either: (A) before; or (B) within a reasonable time with respect to; any
37+federally mandated compliance date. (3) Specifies that recovery of the
38+80% of IURC-approved federally mandated costs that an energy utility
39+may recover through a rate adjustment mechanism must commence no
40+earlier than: (A) the date of a final agency action regarding the
41+federally mandated requirement; or (B) in the absence of a final agency
42+action, the date on which the federally mandated requirement becomes
43+effective. Requires a public utility to notify the IURC if: (1) the public
44+utility intends or decides to retire, sell, or transfer an electric generation
45+facility with a capacity of at least 80 megawatts; and (2) the retirement,
46+sale, or transfer: (A) was not set forth in; or (B) is to take place on a
47+date earlier than the date specified in; the public utility's short term
48+action plan in the public utility's most recently filed integrated resource
49+plan (IRP). Provides that upon receiving such notice from a public
50+utility, the IURC shall consider and may investigate the public utility's
51+intention or decision to retire, sell, or transfer the electric generation
52+facility. Provides that in considering the public utility's intention or
53+decision, the commission shall examine the impact the retirement, sale,
54+or transfer would have on the public utility's ability to meet: (1) the
55+public utility's planning reserve margin requirements or other federal
56+reliability requirements; and (2) the reliability adequacy metrics set
57+forth in Indiana law. Provides that if the retirement, sale, or transfer
58+was not set forth in, or is to take place earlier than specified in, the
59+public utility's short term action plan in the public utility's most
60+recently filed IRP, the IURC shall not permit the public utility's
61+depreciation rates to be amended to reflect the accelerated date for the
62+retirement, sale, or transfer of the electric generation asset unless the
63+IURC finds that such an adjustment is necessary to ensure the ability
64+of the public utility to provide reliable service to its customers, and that
65+the unamended depreciation rates would cause an unjust and
66+unreasonable impact on the public utility and its ratepayers. Authorizes
67+the IURC to adopt a general administrative order to implement these
68+provisions. Provides that these provisions: (1) do not apply to: (A) the
69+retirement, sale, or transfer of a public utility's electric generation
70+facility if the retirement, sale, or transfer is necessary for the public
71+utility to comply with a federal consent decree; or (B) an electric
72+generation facility that generates electricity for sale exclusively to the
73+wholesale market; and (2) expire July 1, 2026.
74+ES 9—LS 7008/DI 101ES 9—LS 7008/DI 101 March 14, 2023
175 First Regular Session of the 123rd General Assembly (2023)
276 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
377 Constitution) is being amended, the text of the existing provision will appear in this style type,
478 additions will appear in this style type, and deletions will appear in this style type.
579 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
680 provision adopted), the text of the new provision will appear in this style type. Also, the
781 word NEW will appear in that style type in the introductory clause of each SECTION that adds
882 a new provision to the Indiana Code or the Indiana Constitution.
983 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
1084 between statutes enacted by the 2022 Regular Session of the General Assembly.
11-SENATE ENROLLED ACT No. 9
12-AN ACT to amend the Indiana Code concerning utilities.
85+ENGROSSED
86+SENATE BILL No. 9
87+A BILL FOR AN ACT to amend the Indiana Code concerning
88+utilities.
1389 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 8-1-2-19 IS AMENDED TO READ AS FOLLOWS
15-[EFFECTIVE UPON PASSAGE]: Sec. 19. Every public utility shall
16-carry a separate, proper and adequate depreciation account whenever
17-the commission, after investigation, shall determine that such
18-depreciation account reasonably can be required. The commission,
19-from time to time, shall ascertain and determine the proper and
20-adequate rates of depreciation of the several classes of property of each
21-public utility. The rates, tolls and charges shall be such as will provide
22-the amounts required over and above the reasonable and necessary
23-operating expenses, to maintain such property in an operating state of
24-efficiency corresponding to the progress of the industry. Each public
25-utility shall conform its depreciation accounts to such rates, so
26-ascertained and determined by the commission. Subject to
27-IC 8-1-8.5-2.1(d), the commission shall make changes in such rates of
28-depreciation, from time to time, as it may find necessary.
29-SECTION 2. IC 8-1-8.4-2, AS ADDED BY P.L.150-2011,
90+1 SECTION 1. IC 8-1-2-19 IS AMENDED TO READ AS FOLLOWS
91+2 [EFFECTIVE UPON PASSAGE]: Sec. 19. Every public utility shall
92+3 carry a separate, proper and adequate depreciation account whenever
93+4 the commission, after investigation, shall determine that such
94+5 depreciation account reasonably can be required. The commission,
95+6 from time to time, shall ascertain and determine the proper and
96+7 adequate rates of depreciation of the several classes of property of each
97+8 public utility. The rates, tolls and charges shall be such as will provide
98+9 the amounts required over and above the reasonable and necessary
99+10 operating expenses, to maintain such property in an operating state of
100+11 efficiency corresponding to the progress of the industry. Each public
101+12 utility shall conform its depreciation accounts to such rates, so
102+13 ascertained and determined by the commission. Subject to
103+14 IC 8-1-8.5-2.1(d), the commission shall make changes in such rates of
104+15 depreciation, from time to time, as it may find necessary.
105+ES 9—LS 7008/DI 101 2
106+1 SECTION 2. IC 8-1-8.4-2, AS ADDED BY P.L.150-2011,
107+2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
108+3 UPON PASSAGE]: Sec. 2. (a) As used in this chapter, "compliance
109+4 project" means a project: that is:
110+5 (1) undertaken by an energy utility; and
111+6 (2) related to the direct or indirect compliance by the energy
112+7 utility with one (1) or more federally mandated requirements.
113+8 (b) The term includes:
114+9 (1) an addition; or
115+10 (2) an integrity, enhancement, or a replacement project;
116+11 undertaken by an energy utility to comply with a federally mandated
117+12 requirement described in section 5(5) of this chapter.
118+13 SECTION 3. IC 8-1-8.4-4, AS ADDED BY P.L.150-2011,
119+14 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
120+15 UPON PASSAGE]: Sec. 4. (a) As used in this chapter, "federally
121+16 mandated costs" means costs that an energy utility incurs has incurred,
122+17 or estimates that it will incur, in connection with a compliance
123+18 project, including capital, operating, maintenance, depreciation, tax, or
124+19 financing costs, or costs that are directly related to the preparation
125+20 and conduct of a regulatory proceeding.
126+21 (b) The term includes costs related to a compliance project and
127+22 incurred by an energy utility before the date of:
128+23 (1) the energy utility's application to the commission under
129+24 section 7 of this chapter; or
130+25 (2) an order of the commission under section 7 of this chapter
131+26 with respect to the application;
132+27 if the commission finds the costs are just and reasonable.
133+28 (b) (c) The term does not include fines or penalties assessed against
134+29 or imposed on an energy utility for violating laws, regulations, or
135+30 consent decrees related to a federally mandated requirement.
136+31 SECTION 4. IC 8-1-8.4-6, AS ADDED BY P.L.150-2011,
137+32 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
138+33 UPON PASSAGE]: Sec. 6. (a) Except as provided in subsection (c), or
139+34 unless an energy utility has elected to file for:
140+35 (1) a certificate of public convenience and necessity; or
141+36 (2) the recovery of costs;
142+37 under another statute, an energy utility that seeks to recover federally
143+38 mandated costs under section 7(c) of this chapter must obtain from the
144+39 commission a certificate that states that public convenience and
145+40 necessity will be is served by a the energy utility's compliance project.
146+41 proposed by the energy utility.
147+42 (b) The commission shall issue a certificate of public convenience
148+ES 9—LS 7008/DI 101 3
149+1 and necessity under section 7(b) of this chapter if the commission finds
150+2 that the proposed compliance project will allow allows the energy
151+3 utility to comply directly or indirectly with one (1) or more federally
152+4 mandated requirements. In determining whether to grant a certificate
153+5 under this section, the commission shall examine the following factors:
154+6 (1) The following, which must be set forth in the energy utility's
155+7 application for the certificate sought, in accordance with section
156+8 7(a) of this chapter:
157+9 (A) A description of the federally mandated requirements,
158+10 including any consent decrees related to the federally
159+11 mandated requirements, that the energy utility seeks to will
160+12 comply with through the proposed compliance project.
161+13 (B) A description of the projected federally mandated costs
162+14 associated with the proposed compliance project, including
163+15 costs that are allocated to the energy utility:
164+16 (i) in connection with regional transmission expansion
165+17 planning and construction; or
166+18 (ii) under a Federal Energy Regulatory Commission
167+19 approved tariff, rate schedule, or agreement.
168+20 (C) A description of how the proposed compliance project
169+21 allows the energy utility to comply with the federally
170+22 mandated requirements described by the energy utility under
171+23 clause (A).
172+24 (D) Alternative plans that demonstrate that the proposed
173+25 compliance project is reasonable and necessary.
174+26 (E) Information as to whether the proposed compliance project
175+27 will extend the useful life of an existing energy utility facility
176+28 and, if so, the value of that extension.
177+29 (2) Any other factors the commission considers relevant.
178+30 (c) An energy utility is not required to obtain a certificate under this
179+31 section for a project that constitutes a research and development
180+32 project.
181+33 SECTION 5. IC 8-1-8.4-7, AS ADDED BY P.L.150-2011,
182+34 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
183+35 UPON PASSAGE]: Sec. 7. (a) As a condition for receiving the
184+36 certificate required under section 6 of this chapter, an energy utility
185+37 must file with the commission an application that sets forth the
186+38 information described in section 6(b) of this chapter, supported with
187+39 technical information in as much detail as the commission requires. An
188+40 application under this section must be filed either:
189+41 (1) before; or
190+42 (2) within a reasonable time with respect to;
191+ES 9—LS 7008/DI 101 4
192+1 any federally mandated compliance date.
193+2 (b) The commission shall hold a properly noticed public hearing on
194+3 each application and grant a certificate only if the commission has:
195+4 (1) made a finding that the public convenience and necessity will
196+5 be served by the proposed compliance project;
197+6 (2) approved the incurred and projected federally mandated
198+7 costs associated with the proposed compliance project; and
199+8 (3) made a finding on each of the factors set forth in section 6(b)
200+9 of this chapter.
201+10 (c) If the commission approves under subsection (b) a proposed
202+11 compliance project and the projected federally mandated costs
203+12 associated with the proposed compliance project, the following apply:
204+13 (1) Eighty percent (80%) of the approved federally mandated
205+14 costs shall be recovered by the energy utility through a periodic
206+15 retail rate adjustment mechanism that allows the timely recovery
207+16 of the approved federally mandated costs. The commission shall
208+17 adjust the energy utility's authorized net operating income to
209+18 reflect any approved earnings for purposes of IC 8-1-2-42(d)(3)
210+19 and IC 8-1-2-42(g)(3), with recovery commencing no earlier
211+20 than:
212+21 (A) the date of a final agency action regarding the federally
213+22 mandated requirement; or
214+23 (B) in the absence of a final agency action, the date on
215+24 which the federally mandated requirement becomes
216+25 effective.
217+26 (2) Twenty percent (20%) of the approved federally mandated
218+27 costs, including depreciation, allowance for funds used during
219+28 construction, and post in service carrying costs, based on the
220+29 overall cost of capital most recently approved by the commission,
221+30 shall be deferred and recovered by the energy utility as part of the
222+31 next general rate case filed by the energy utility with the
223+32 commission.
224+33 (3) Actual costs that exceed the projected federally mandated
225+34 costs of the approved compliance project by more than
226+35 twenty-five percent (25%) shall require specific justification by
227+36 the energy utility and specific approval by the commission before
228+37 being authorized in the next general rate case filed by the energy
229+38 utility with the commission.
230+39 SECTION 6. IC 8-1-8.5-2.1 IS ADDED TO THE INDIANA CODE
231+40 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
232+41 UPON PASSAGE]: Sec. 2.1. (a) This section does not apply to the
233+42 retirement, sale, or transfer of:
234+ES 9—LS 7008/DI 101 5
235+1 (1) a public utility's electric generation facility if the
236+2 retirement, sale, or transfer is necessary in order for the
237+3 public utility to comply with a federal consent decree; or
238+4 (2) an electric generation facility that generates electricity for
239+5 sale exclusively to the wholesale market.
240+6 (b) A public utility shall notify the commission if:
241+7 (1) the public utility intends or decides to retire, sell, or
242+8 transfer an electric generation facility with a capacity of at
243+9 least eighty (80) megawatts; and
244+10 (2) the retirement, sale, or transfer:
245+11 (A) was not set forth in; or
246+12 (B) is to take place on a date earlier than the date specified
247+13 in;
248+14 the public utility's short term action plan in the public utility's
249+15 most recently filed integrated resource plan.
250+16 (c) Upon receiving notice from a public utility under subsection
251+17 (b), the commission shall consider and may investigate, under
252+18 IC 8-1-2-58 through IC 8-1-2-60, the public utility's intention or
253+19 decision to retire, sell, or transfer the electric generation facility.
254+20 In considering the public utility's intention or decision under this
255+21 subsection, the commission shall examine the impact the
256+22 retirement, sale, or transfer would have on the public utility's
257+23 ability to meet:
258+24 (1) the public utility's planning reserve margin requirements
259+25 or other federal reliability requirements that the public utility
260+26 is obligated to meet, as described in section 13(i)(4) of this
261+27 chapter; and
262+28 (2) the reliability adequacy metrics set forth in section 13(e)
263+29 of this chapter.
264+30 (d) Before July 1, 2026, if:
265+31 (1) a public utility intends or decides to retire, sell, or transfer
266+32 an electric generation facility with a capacity of at least eighty
267+33 (80) megawatts; and
268+34 (2) the retirement, sale, or transfer:
269+35 (A) was not set forth in; or
270+36 (B) is to take place on a date earlier than the date specified
271+37 in;
272+38 the public utility's short term action plan in the public utility's
273+39 most recently filed integrated resource plan;
274+40 the commission shall not permit the public utility's depreciation
275+41 rates, as established under IC 8-1-2-19, to be amended to reflect the
276+42 accelerated date for the retirement, sale, or transfer of the electric
277+ES 9—LS 7008/DI 101 6
278+1 generation asset unless the commission finds that such an
279+2 adjustment is necessary to ensure the ability of the public utility to
280+3 provide reliable service to its customers, and that the unamended
281+4 depreciation rates would cause an unjust and unreasonable impact
282+5 on the public utility and its ratepayers.
283+6 (e) The commission may issue a general administrative order to
284+7 implement this section.
285+8 (f) This section expires July 1, 2026.
286+9 SECTION 7. An emergency is declared for this act.
287+ES 9—LS 7008/DI 101 7
288+COMMITTEE REPORT
289+Madam President: The Senate Committee on Utilities, to which was
290+referred Senate Bill No. 9, has had the same under consideration and
291+begs leave to report the same back to the Senate with the
292+recommendation that said bill be AMENDED as follows:
293+Page 1, line 14, delete "IC 8-1-8.5-2.1(c)(2)," and insert "IC
294+8-1-8.5-2.1(d),".
295+Page 2, line 4, delete "of a public utility's electric generation" and
296+insert "of:
297+(1) a public utility's electric generation facility if the
298+retirement, sale, or transfer is necessary in order for the
299+public utility to comply with a federal consent decree; or
300+(2) an electric generation facility that generates electricity for
301+sale exclusively to the wholesale market.
302+(b) A public utility shall notify the commission if:
303+(1) the public utility intends or decides to retire, sell, or
304+transfer an electric generation facility with a capacity of at
305+least eighty (80) megawatts; and
306+(2) the retirement, sale, or transfer:
307+(A) was not set forth in; or
308+(B) is to take place on a date earlier than the date specified
309+in;
310+the public utility's short term action plan in the public utility's
311+most recently filed integrated resource plan.
312+(c) Upon receiving notice from a public utility under subsection
313+(b), the commission shall consider and may investigate, under
314+IC 8-1-2-58 through IC 8-1-2-60, the public utility's intention or
315+decision to retire, sell, or transfer the electric generation facility.
316+In considering the public utility's intention or decision under this
317+subdivision, the commission shall examine the impact the
318+retirement, sale, or transfer would have on the public utility's
319+ability to meet:
320+(1) the public utility's planning reserve margin requirements
321+or other federal reliability requirements that the public utility
322+is obligated to meet, as described in section 13(i)(4) of this
323+chapter; and
324+(2) the reliability adequacy metrics set forth in section 13(e)
325+of this chapter.
326+(d) Before July 1, 2026, if:
327+(1) a public utility intends or decides to retire, sell, or transfer
328+an electric generation facility with a capacity of at least eighty
329+(80) megawatts; and
330+ES 9—LS 7008/DI 101 8
331+(2) the retirement, sale, or transfer:
332+(A) was not set forth in; or
333+(B) is to take place on a date earlier than the date specified
334+in;
335+the public utility's short term action plan in the public utility's
336+most recently filed integrated resource plan;
337+the commission shall not permit the public utility's depreciation
338+rates, as established under IC 8-1-2-19, to be amended to reflect the
339+accelerated date for the retirement, sale, or transfer of the electric
340+generation asset unless the commission finds that such an
341+adjustment is necessary to ensure the ability of the public utility to
342+provide reliable service to its customers, and that the unamended
343+depreciation rates would cause an unjust and unreasonable impact
344+on the public utility and its ratepayers.
345+(e) The commission may issue a general administrative order to
346+implement this section.".
347+Page 2, delete lines 5 through 42.
348+ Delete page 3.
349+Page 4, delete line 1.
350+Page 4, line 2, delete "(e)" and insert "(f)".
351+and when so amended that said bill do pass.
352+(Reference is to SB 9 as introduced.)
353+KOCH, Chairperson
354+Committee Vote: Yeas 6, Nays 2.
355+_____
356+COMMITTEE REPORT
357+Mr. Speaker: Your Committee on Utilities, Energy and
358+Telecommunications, to which was referred Senate Bill 9, has had the
359+same under consideration and begs leave to report the same back to the
360+House with the recommendation that said bill be amended as follows:
361+Page 1, after line 15, begin a new paragraph and insert:
362+"SECTION 2. IC 8-1-8.4-2, AS ADDED BY P.L.150-2011,
30363 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31364 UPON PASSAGE]: Sec. 2. (a) As used in this chapter, "compliance
32365 project" means a project: that is:
33366 (1) undertaken by an energy utility; and
34367 (2) related to the direct or indirect compliance by the energy
368+ES 9—LS 7008/DI 101 9
35369 utility with one (1) or more federally mandated requirements.
36-SEA 9 — Concur 2
37370 (b) The term includes:
38371 (1) an addition; or
39372 (2) an integrity, enhancement, or a replacement project;
40373 undertaken by an energy utility to comply with a federally mandated
41374 requirement described in section 5(5) of this chapter.
42375 SECTION 3. IC 8-1-8.4-4, AS ADDED BY P.L.150-2011,
43376 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
44377 UPON PASSAGE]: Sec. 4. (a) As used in this chapter, "federally
45378 mandated costs" means costs that an energy utility incurs has incurred,
46379 or estimates that it will incur, in connection with a compliance
47380 project, including capital, operating, maintenance, depreciation, tax, or
48381 financing costs, or costs that are directly related to the preparation
49382 and conduct of a regulatory proceeding.
50383 (b) The term includes costs related to a compliance project and
51384 incurred by an energy utility before the date of:
52385 (1) the energy utility's application to the commission under
53386 section 7 of this chapter; or
54387 (2) an order of the commission under section 7 of this chapter
55388 with respect to the application;
56389 if the commission finds the costs are just and reasonable.
57390 (b) (c) The term does not include fines or penalties assessed against
58391 or imposed on an energy utility for violating laws, regulations, or
59392 consent decrees related to a federally mandated requirement.
60393 SECTION 4. IC 8-1-8.4-6, AS ADDED BY P.L.150-2011,
61394 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
62395 UPON PASSAGE]: Sec. 6. (a) Except as provided in subsection (c), or
63396 unless an energy utility has elected to file for:
64397 (1) a certificate of public convenience and necessity; or
65398 (2) the recovery of costs;
66399 under another statute, an energy utility that seeks to recover federally
67400 mandated costs under section 7(c) of this chapter must obtain from the
68401 commission a certificate that states that public convenience and
69402 necessity will be is served by a the energy utility's compliance project.
70403 proposed by the energy utility.
71404 (b) The commission shall issue a certificate of public convenience
72405 and necessity under section 7(b) of this chapter if the commission finds
73406 that the proposed compliance project will allow allows the energy
74407 utility to comply directly or indirectly with one (1) or more federally
75408 mandated requirements. In determining whether to grant a certificate
76409 under this section, the commission shall examine the following factors:
77410 (1) The following, which must be set forth in the energy utility's
411+ES 9—LS 7008/DI 101 10
78412 application for the certificate sought, in accordance with section
79-SEA 9 — Concur 3
80413 7(a) of this chapter:
81414 (A) A description of the federally mandated requirements,
82415 including any consent decrees related to the federally
83416 mandated requirements, that the energy utility seeks to will
84417 comply with through the proposed compliance project.
85418 (B) A description of the projected federally mandated costs
86419 associated with the proposed compliance project, including
87420 costs that are allocated to the energy utility:
88421 (i) in connection with regional transmission expansion
89422 planning and construction; or
90423 (ii) under a Federal Energy Regulatory Commission
91424 approved tariff, rate schedule, or agreement.
92425 (C) A description of how the proposed compliance project
93426 allows the energy utility to comply with the federally
94427 mandated requirements described by the energy utility under
95428 clause (A).
96429 (D) Alternative plans that demonstrate that the proposed
97430 compliance project is reasonable and necessary.
98431 (E) Information as to whether the proposed compliance project
99432 will extend the useful life of an existing energy utility facility
100433 and, if so, the value of that extension.
101434 (2) Any other factors the commission considers relevant.
102435 (c) An energy utility is not required to obtain a certificate under this
103436 section for a project that constitutes a research and development
104437 project.
105438 SECTION 5. IC 8-1-8.4-7, AS ADDED BY P.L.150-2011,
106439 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
107440 UPON PASSAGE]: Sec. 7. (a) As a condition for receiving the
108441 certificate required under section 6 of this chapter, an energy utility
109442 must file with the commission an application that sets forth the
110443 information described in section 6(b) of this chapter, supported with
111444 technical information in as much detail as the commission requires. An
112445 application under this section must be filed either:
113446 (1) before; or
114447 (2) within a reasonable time with respect to;
115448 any federally mandated compliance date.
116449 (b) The commission shall hold a properly noticed public hearing on
117450 each application and grant a certificate only if the commission has:
118451 (1) made a finding that the public convenience and necessity will
119452 be served by the proposed compliance project;
120453 (2) approved the incurred and projected federally mandated
454+ES 9—LS 7008/DI 101 11
121455 costs associated with the proposed compliance project; and
122-SEA 9 — Concur 4
123456 (3) made a finding on each of the factors set forth in section 6(b)
124457 of this chapter.
125458 (c) If the commission approves under subsection (b) a proposed
126459 compliance project and the projected federally mandated costs
127460 associated with the proposed compliance project, the following apply:
128461 (1) Eighty percent (80%) of the approved federally mandated
129462 costs shall be recovered by the energy utility through a periodic
130463 retail rate adjustment mechanism that allows the timely recovery
131464 of the approved federally mandated costs. The commission shall
132465 adjust the energy utility's authorized net operating income to
133466 reflect any approved earnings for purposes of IC 8-1-2-42(d)(3)
134467 and IC 8-1-2-42(g)(3), with recovery commencing no earlier
135468 than:
136469 (A) the date of a final agency action regarding the federally
137470 mandated requirement; or
138471 (B) in the absence of a final agency action, the date on
139472 which the federally mandated requirement becomes
140473 effective.
141474 (2) Twenty percent (20%) of the approved federally mandated
142475 costs, including depreciation, allowance for funds used during
143476 construction, and post in service carrying costs, based on the
144477 overall cost of capital most recently approved by the commission,
145478 shall be deferred and recovered by the energy utility as part of the
146479 next general rate case filed by the energy utility with the
147480 commission.
148481 (3) Actual costs that exceed the projected federally mandated
149482 costs of the approved compliance project by more than
150483 twenty-five percent (25%) shall require specific justification by
151484 the energy utility and specific approval by the commission before
152485 being authorized in the next general rate case filed by the energy
153-utility with the commission.
154-SECTION 6. IC 8-1-8.5-2.1 IS ADDED TO THE INDIANA CODE
155-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
156-UPON PASSAGE]: Sec. 2.1. (a) This section does not apply to the
157-retirement, sale, or transfer of:
158-(1) a public utility's electric generation facility if the
159-retirement, sale, or transfer is necessary in order for the
160-public utility to comply with a federal consent decree; or
161-(2) an electric generation facility that generates electricity for
162-sale exclusively to the wholesale market.
163-(b) A public utility shall notify the commission if:
164-(1) the public utility intends or decides to retire, sell, or
165-SEA 9 — Concur 5
166-transfer an electric generation facility with a capacity of at
167-least eighty (80) megawatts; and
168-(2) the retirement, sale, or transfer:
169-(A) was not set forth in; or
170-(B) is to take place on a date earlier than the date specified
171-in;
172-the public utility's short term action plan in the public utility's
173-most recently filed integrated resource plan.
174-(c) Upon receiving notice from a public utility under subsection
175-(b), the commission shall consider and may investigate, under
176-IC 8-1-2-58 through IC 8-1-2-60, the public utility's intention or
177-decision to retire, sell, or transfer the electric generation facility.
178-In considering the public utility's intention or decision under this
179-subsection, the commission shall examine the impact the
180-retirement, sale, or transfer would have on the public utility's
181-ability to meet:
182-(1) the public utility's planning reserve margin requirements
183-or other federal reliability requirements that the public utility
184-is obligated to meet, as described in section 13(i)(4) of this
185-chapter; and
186-(2) the reliability adequacy metrics set forth in section 13(e)
187-of this chapter.
188-(d) Before July 1, 2026, if:
189-(1) a public utility intends or decides to retire, sell, or transfer
190-an electric generation facility with a capacity of at least eighty
191-(80) megawatts; and
192-(2) the retirement, sale, or transfer:
193-(A) was not set forth in; or
194-(B) is to take place on a date earlier than the date specified
195-in;
196-the public utility's short term action plan in the public utility's
197-most recently filed integrated resource plan;
198-the commission shall not permit the public utility's depreciation
199-rates, as established under IC 8-1-2-19, to be amended to reflect the
200-accelerated date for the retirement, sale, or transfer of the electric
201-generation asset unless the commission finds that such an
202-adjustment is necessary to ensure the ability of the public utility to
203-provide reliable service to its customers, and that the unamended
204-depreciation rates would cause an unjust and unreasonable impact
205-on the public utility and its ratepayers.
206-(e) The commission may issue a general administrative order to
207-implement this section.
208-SEA 9 — Concur 6
209-(f) This section expires July 1, 2026.
210-SECTION 7. An emergency is declared for this act.
211-SEA 9 — Concur President of the Senate
212-President Pro Tempore
213-Speaker of the House of Representatives
214-Governor of the State of Indiana
215-Date: Time:
216-SEA 9 — Concur
486+utility with the commission.".
487+Page 2, line 25, delete "subdivision," and insert "subsection,".
488+Renumber all SECTIONS consecutively.
489+and when so amended that said bill do pass.
490+(Reference is to SB 9 as printed February 24, 2023.)
491+SOLIDAY
492+Committee Vote: yeas 9, nays 3.
493+ES 9—LS 7008/DI 101