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 6913 NOTE PREPARED: Jan 3, 2024
BILL NUMBER: SB 278 BILL AMENDED:
SUBJECT: Utility Disconnections and Customer Data Reports.
FIRST AUTHOR: Sen. Vinzant BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill provides that from June 21 through September 23 (in addition to the
period from December 1 through March 15, under current law) of any year, an electric or gas utility may not
terminate residential electric or gas service for an individual who is eligible for and has applied for assistance
from a home energy assistance program administered by the Lieutenant Governor. Additionally, the bill
prohibits an electric, gas, or water utility from terminating service for any residential customer of the utility
on any of the following days: (1) A Friday, Saturday, or Sunday. (2) A legal holiday. (3) Any day, or after
noon on the day preceding any day, during which customer service representatives of the utility are not
available to respond to inquiries from customers during regular business hours.
This bill strikes a provision that authorizes the Indiana Utility Regulatory Commission (IURC) to establish
a reasonable rate of interest that a utility may charge on the unpaid balance of a customer's delinquent bill.
It also prohibits an electric, gas, or water utility from charging or collecting a deposit, reconnection fee, or
other similar charge; as a condition of restoring service to a residential customer following a termination of
service for nonpayment. It requires the IURC to amend, not later than May 1, 2024, its administrative rules
as necessary to conform the rules to these provisions. The bill also requires a utility to: (1) amend its
residential tariffs as necessary to conform the tariffs to these provisions; and (2) file with the IURC a petition
for approval of each amended tariff; not later than June 1, 2024.
Beginning in 2025, the bill requires utilities to file quarterly reports with the IURC that includes certain data
concerning customer accounts and low income customer accounts. It provides that: (1) a utility shall report
all required information in the aggregate and in a manner that does not identify individual customers; and
(2) the IURC may not require utilities to disclose confidential and proprietary business information without
adequate protection of the information. It also requires the IURC to adopt rules to implement these
SB 278 1 provisions.
The bill provides that, beginning in 2026, the IURC shall annually compile and summarize the information
received from utilities for the previous calendar year and include the summary in the IURC's annual report.
Effective Date: Upon passage; July 1, 2024.
Explanation of State Expenditures: This bill will increase the workload of the Indiana Utility Regulatory
Commission (IURC) to (1) adopt rules concerning utility service deposits, reconnection fees, and prohibited
periods for service disconnection, (2) compile information concerning budget billing program information
within the agency’s annual report, and (3) review and amend tariffs that do not conform with the service
disconnect prohibited periods added by the bill. Additionally, to the extent a utility either (1) charges fees
after July 1, 2024, that are not permitted by the bill or (2) disconnects services during the extended prohibited
periods, the workload of the IURC would increase to investigate and enforce violations.
Increases in workload are expected to be accomplished within existing resource and funding levels.
Explanation of State Revenues: Utilities found to have (1) collected deposits, reconnection fees, or similar
charges or (2) disconnected services during prohibited period expansions, could be subject to a Class B
infraction. The maximum judgment for a Class B infraction is $1,000, which would be deposited in the state
General Fund. The total court fee revenue per case would range between $85.50 and $103. The amount of
court fees deposited will vary depending on whether the case is filed in a court of record or a municipal court.
The following linked document describes the fees and distribution of the revenue: Court fees imposed in
criminal, juvenile, and civil violation cases.
Explanation of Local Expenditures: This bill will increase the workload of local publically-owned utilities
to submit quarterly information concerning budget billing programs to the IURC.
Explanation of Local Revenues The bill could decrease revenue received by local publically-owned utilities
from deposits, reconnection fees, or similar charges. Decreases in local revenue are indeterminable.
Penalty Provision: If additional court actions occur and a judgement is entered, more revenue will be
collected by certain local units. If the case is filed in a court of record, the county will receive $33.90 and
qualifying municipalities will receive a share of $2.10. If the case is filed in a municipal court, the county
receives $20, and the municipality will receive $33.50. The following linked document describes the fees
and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.
State Agencies Affected: IURC.
Local Agencies Affected: Trial courts, local law enforcement agencies, local publically-owned utilities.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
SB 278 2