Indiana 2024 Regular Session

Indiana Senate Bill SB0278 Compare Versions

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22 Introduced Version
33 SENATE BILL No. 278
44 _____
55 DIGEST OF INTRODUCED BILL
66 Citations Affected: IC 8-1-2-121; IC 8-1-6.1.
77 Synopsis: Utility disconnections and customer data reports. Provides
88 that from June 21 through September 23 (in addition to the period from
99 December 1 through March 15, under current law) of any year, an
1010 electric or gas utility may not terminate residential electric or gas
1111 service for an individual who is eligible for and has applied for
1212 assistance from a home energy assistance program administered by the
1313 lieutenant governor. Amends the same section of the Indiana Code as
1414 follows: (1) Prohibits an electric, gas, or water utility from terminating
1515 service for any residential customer of the utility on any of the
1616 following days: (A) A Friday, Saturday, or Sunday. (B) A legal holiday.
1717 (C) Any day, or after noon on the day preceding any day, during which
1818 customer service representatives of the utility are not available to
1919 respond to inquiries from customers during regular business hours. (2)
2020 Strikes a provision that authorizes the Indiana utility regulatory
2121 commission (IURC) to establish a reasonable rate of interest that a
2222 utility may charge on the unpaid balance of a customer's delinquent
2323 bill. (3) Prohibits an electric, gas, or water utility from charging or
2424 collecting any: (A) deposit; (B) reconnection fee; or (C) other similar
2525 charge; as a condition of, or in connection with, restoring service to a
2626 residential customer following a termination of service for nonpayment.
2727 Requires the IURC to amend, not later than May 1, 2024, its
2828 administrative rules as necessary to conform the rules to these
2929 provisions. Requires a utility to: (1) amend its residential tariffs as
3030 necessary to conform the tariffs to these provisions; and (2) file with
3131 the IURC a petition for approval of each amended tariff; not later than
3232 June 1, 2024. Beginning in 2025, requires a utility that: (1) is under the
3333 (Continued next page)
3434 Effective: Upon passage; July 1, 2024.
3535 Vinzant
3636 January 16, 2024, read first time and referred to Committee on Utilities.
3737 2024 IN 278—LS 6913/DI 101 Digest Continued
3838 jurisdiction of the IURC for the approval of rates and charges; and (2)
3939 provides residential electric, natural gas, water, or wastewater utility
4040 service at retail to customers and low income customers in Indiana; to
4141 report to the IURC on a quarterly basis certain data concerning
4242 customer accounts and low income customer accounts. Provides that:
4343 (1) a utility shall report all required information in the aggregate and
4444 in a manner that does not identify individual customers and low income
4545 customers; and (2) the IURC may not require utilities to disclose
4646 confidential and proprietary business information without adequate
4747 protection of the information. Requires the IURC to adopt rules to
4848 implement these provisions. Provides that, beginning in 2026, the
4949 IURC shall annually compile and summarize the information received
5050 from utilities for the previous calendar year and include the summary
5151 in the IURC's annual report.
5252 2024 IN 278—LS 6913/DI 1012024 IN 278—LS 6913/DI 101 Introduced
5353 Second Regular Session of the 123rd General Assembly (2024)
5454 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
5555 Constitution) is being amended, the text of the existing provision will appear in this style type,
5656 additions will appear in this style type, and deletions will appear in this style type.
5757 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
5858 provision adopted), the text of the new provision will appear in this style type. Also, the
5959 word NEW will appear in that style type in the introductory clause of each SECTION that adds
6060 a new provision to the Indiana Code or the Indiana Constitution.
6161 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
6262 between statutes enacted by the 2023 Regular Session of the General Assembly.
6363 SENATE BILL No. 278
6464 A BILL FOR AN ACT to amend the Indiana Code concerning
6565 utilities.
6666 Be it enacted by the General Assembly of the State of Indiana:
6767 1 SECTION 1. IC 8-1-2-121, AS AMENDED BY P.L.181-2006,
6868 2 SECTION 48, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6969 3 UPON PASSAGE]: Sec. 121. (a) Notwithstanding any other provision
7070 4 of law:
7171 5 (1) from December 1 through March 15; and
7272 6 (2) from June 21 through September 23;
7373 7 of any year, no an electric or gas utility, including a municipally
7474 8 owned, privately owned, or cooperatively owned utility, shall may not
7575 9 terminate residential electric or gas service for persons who are eligible
7676 10 for and have applied for assistance from a heating home energy
7777 11 assistance program administered under IC 4-4-33. The commission
7878 12 shall implement procedures to ensure that electric or gas utility service
7979 13 is continued while eligibility for such persons is being determined.
8080 14 (b) Notwithstanding any other provision of law, an electric, gas,
8181 15 or water utility (including a municipally owned, privately owned,
8282 2024 IN 278—LS 6913/DI 101 2
8383 1 or cooperatively owned utility) may not terminate residential
8484 2 electric, gas, or water service for any residential customer of the
8585 3 utility on any of the following days:
8686 4 (1) A Friday, Saturday, or Sunday.
8787 5 (2) A legal holiday (as defined in IC 1-1-9-1).
8888 6 (3) Any day, or after noon on the day preceding any day,
8989 7 during which customer service representatives of the utility
9090 8 are not available to respond to inquiries from customers
9191 9 during regular business hours.
9292 10 (b) (c) Any electric or gas utility (including a municipally owned,
9393 11 privately owned, or cooperatively owned utility) shall provide any
9494 12 residential customer whose account is delinquent an opportunity to
9595 13 enter into a reasonable amortization agreement with such company to
9696 14 pay the delinquent account. Such an amortization agreement must
9797 15 provide the customer with adequate opportunity to apply for and
9898 16 receive the benefits of any available public assistance program. An
9999 17 amortization agreement is subject to amendment on the customer's
100100 18 request if there is a change in the customer's financial circumstances.
101101 19 (c) The commission may establish a reasonable rate of interest
102102 20 which a utility may charge on the unpaid balance of a customer's
103103 21 delinquent bill that may not exceed the rate established by the
104104 22 commission under section 34.5 of this chapter.
105105 23 (d) Notwithstanding any other provision of law, an electric, gas,
106106 24 or water utility (including a municipally owned, privately owned,
107107 25 or cooperatively owned utility) may not charge or collect any:
108108 26 (1) deposit;
109109 27 (2) reconnection fee; or
110110 28 (3) other similar charge;
111111 29 as a condition of, or in connection with, restoring service to a
112112 30 residential customer following a termination of service for
113113 31 nonpayment.
114114 32 (d) (e) The commission shall adopt rules under IC 4-22-2 to carry
115115 33 out the provisions of this section.
116116 34 (e) (f) This section does not prohibit an electric or gas utility from
117117 35 terminating residential utility service upon a request of a customer or
118118 36 under the following circumstances:
119119 37 (1) If a condition dangerous or hazardous to life, physical safety,
120120 38 or property exists.
121121 39 (2) Upon order by any court, the commission, or other duly
122122 40 authorized public authority.
123123 41 (3) If fraudulent or unauthorized use of electricity or gas is
124124 42 detected and the utility has reasonable grounds to believe the
125125 2024 IN 278—LS 6913/DI 101 3
126126 1 affected customer is responsible for such use.
127127 2 (4) If the utility's regulating or measuring equipment has been
128128 3 tampered with and the utility has reasonable grounds to believe
129129 4 that the affected customer is responsible for such tampering.
130130 5 SECTION 2. IC 8-1-6.1 IS ADDED TO THE INDIANA CODE AS
131131 6 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
132132 7 1, 2024]:
133133 8 Chapter 6.1. Quarterly Residential Customer Reports by
134134 9 Utilities
135135 10 Sec. 1. As used in this chapter, "budget billing arrangement"
136136 11 means a levelized payment arrangement that:
137137 12 (1) is entered into by a utility and:
138138 13 (A) a customer; or
139139 14 (B) a low income customer;
140140 15 of the utility;
141141 16 (2) allows the customer or low income customer to pay for
142142 17 utility service in equal monthly installments; and
143143 18 (3) involves a reconciliation mechanism in which:
144144 19 (A) the amount of utility service actually used by the
145145 20 customer or low income customer during a specified period
146146 21 is compared with the amount of utility service for which
147147 22 the customer or low income customer was billed under the
148148 23 arrangement during the specified period; and
149149 24 (B) the account of the customer or low income customer is
150150 25 either billed or credited, as appropriate, for any
151151 26 discrepancy identified under clause (A).
152152 27 Sec. 2. As used in this chapter, "customer" refers to a
153153 28 residential customer who:
154154 29 (1) has agreed to pay for utility service from a utility; and
155155 30 (2) is not a low income customer.
156156 31 Sec. 3. As used in this chapter, "low income customer" refers to
157157 32 a residential customer who is part of a household that:
158158 33 (1) has agreed to pay for utility service from a utility; and
159159 34 (2) satisfies either of the following:
160160 35 (A) Is eligible for and has applied for assistance from:
161161 36 (i) a home energy assistance program administered
162162 37 under IC 4-4-33; or
163163 38 (ii) a low income household water assistance program
164164 39 administered by the Indiana housing and community
165165 40 development authority.
166166 41 (B) Is eligible for one (1) or more of the following:
167167 42 (i) The Temporary Assistance for Needy Families
168168 2024 IN 278—LS 6913/DI 101 4
169169 1 (TANF) program.
170170 2 (ii) The federal Supplemental Nutrition Assistance
171171 3 Program (SNAP).
172172 4 (iii) The Special Supplemental Nutrition Program for
173173 5 Women, Infants, and Children (WIC).
174174 6 (iv) Free or reduced price school meals.
175175 7 (v) The federal Supplemental Security Income (SSI)
176176 8 program.
177177 9 (vi) Medicaid.
178178 10 (vii) The healthy Indiana plan under IC 12-15-44.5.
179179 11 (viii) The federal Child Care and Development Fund
180180 12 (CCDF) grant program or the federal Head Start
181181 13 program.
182182 14 (ix) Public housing or housing assistance programs.
183183 15 (x) Other means tested programs.
184184 16 Sec. 4. As used in this chapter, "payment plan" means a
185185 17 payment arrangement that:
186186 18 (1) is entered into by a utility and:
187187 19 (A) a customer; or
188188 20 (B) a low income customer;
189189 21 of the utility; and
190190 22 (2) allows the customer or low income customer to:
191191 23 (A) pay current or past due amounts for utility service in
192192 24 lower amounts or over an extended period of time, or
193193 25 according to another agreed upon schedule;
194194 26 (B) defer the payment of current or past due amounts for
195195 27 utility service to some future date; or
196196 28 (C) receive a forbearance with respect to the payment of
197197 29 certain amounts owed.
198198 30 Sec. 5. As used in this chapter, "protected account" means an
199199 31 account that:
200200 32 (1) is for utility service that:
201201 33 (A) is provided to a:
202202 34 (i) customer; or
203203 35 (ii) low income customer;
204204 36 who is vulnerable because of advanced age, serious illness,
205205 37 or disability; and
206206 38 (B) is not subject to termination or disconnection for
207207 39 nonpayment or for which termination or disconnection for
208208 40 nonpayment is restricted during specified periods; or
209209 41 (2) otherwise qualifies as a protected account under rules
210210 42 adopted by the commission under section 9 of this chapter.
211211 2024 IN 278—LS 6913/DI 101 5
212212 1 Sec. 6. As used in this chapter, "utility" means a utility, however
213213 2 organized, that:
214214 3 (1) provides utility service to customers and low income
215215 4 customers in Indiana; and
216216 5 (2) is under the jurisdiction of the commission for the
217217 6 approval of rates and charges.
218218 7 Sec. 7. As used in this chapter, "utility service" means
219219 8 residential:
220220 9 (1) electric;
221221 10 (2) natural gas;
222222 11 (3) water; or
223223 12 (4) wastewater;
224224 13 service that is provided at retail.
225225 14 Sec. 8. (a) Beginning in 2025, a utility shall submit to the
226226 15 commission quarterly reports containing the information set forth
227227 16 in this subsection with respect to the calendar quarter covered by
228228 17 the report. The first report required by this subsection must
229229 18 include the information set forth in this subsection with respect to
230230 19 the second calendar quarter of 2025. The reports required by this
231231 20 subsection shall be submitted to the commission at the time and in
232232 21 the manner and form prescribed by the commission. Each report
233233 22 must include the following information with respect to customers
234234 23 (not including low income customers with respect to whom a report
235235 24 is required under subsection (b)) for the calendar quarter covered
236236 25 by the report:
237237 26 (1) The total number of open customer accounts.
238238 27 (2) The total amount billed by the utility for all open customer
239239 28 accounts.
240240 29 (3) The total gross receipts received by the utility for all open
241241 30 customer accounts.
242242 31 (4) The total number of open protected accounts for
243243 32 customers.
244244 33 (5) The total number of open customer accounts that were
245245 34 delinquent for at least sixty (60) days and not more than
246246 35 ninety (90) days.
247247 36 (6) The total dollar amount owed with respect to the accounts
248248 37 identified under subdivision (5).
249249 38 (7) The total number of open customer accounts that were
250250 39 delinquent for more than ninety (90) days.
251251 40 (8) The total dollar amount owed with respect to the accounts
252252 41 identified under subdivision (7).
253253 42 (9) The total number of customer accounts referred for
254254 2024 IN 278—LS 6913/DI 101 6
255255 1 collection to an attorney or a collection agency.
256256 2 (10) The total number of new payment plans entered into
257257 3 between the utility and customers of the utility.
258258 4 (11) The total number of new budget billing arrangements
259259 5 entered into between the utility and customers of the utility.
260260 6 (12) The total number of customer accounts sent a notice of
261261 7 disconnection for nonpayment.
262262 8 (13) The total number of utility service disconnections
263263 9 performed for nonpayment.
264264 10 (14) The total number of utility service restorations after
265265 11 disconnection for nonpayment.
266266 12 (15) The average duration of utility service disconnection for
267267 13 customer accounts identified under subdivision (14).
268268 14 (16) The total number of customer accounts written off as
269269 15 uncollectible.
270270 16 (17) The total dollar value of customer accounts identified
271271 17 under subdivision (16).
272272 18 (18) The total dollar value of recovered bad debt with respect
273273 19 to customer accounts.
274274 20 (19) Any other relevant information concerning customer
275275 21 accounts that the commission:
276276 22 (A) considers appropriate in evaluating:
277277 23 (i) the payment history of customers; and
278278 24 (ii) the billing and related practices of utilities with
279279 25 respect to customers; and
280280 26 (B) requires under rules adopted under section 9 of this
281281 27 chapter.
282282 28 (b) Beginning in 2025, a utility shall submit to the commission
283283 29 quarterly reports containing the information set forth in this
284284 30 subsection with respect to the calendar quarter covered by the
285285 31 report. The first report required by this subsection must include
286286 32 the information set forth in this subsection with respect to the
287287 33 second calendar quarter of 2025. The reports required by this
288288 34 subsection shall be submitted to the commission at the time and in
289289 35 the manner and form prescribed by the commission. Each report
290290 36 must include the following information with respect to low income
291291 37 customers for the calendar quarter covered by the report:
292292 38 (1) The total number of open low income customer accounts.
293293 39 (2) The total amount billed by the utility for all open low
294294 40 income customer accounts.
295295 41 (3) The total gross receipts received by the utility for all open
296296 42 low income customer accounts.
297297 2024 IN 278—LS 6913/DI 101 7
298298 1 (4) Of the total amount of gross receipts reported under
299299 2 subdivision (3), the total amount that was paid through:
300300 3 (A) a home energy assistance program administered under
301301 4 IC 4-4-33; or
302302 5 (B) a low income household water assistance program
303303 6 administered by the Indiana housing and community
304304 7 development authority.
305305 8 (5) The total number of low income customers who received
306306 9 assistance from:
307307 10 (A) a home energy assistance program administered under
308308 11 IC 4-4-33; or
309309 12 (B) a low income household water assistance program
310310 13 administered by the Indiana housing and community
311311 14 development authority.
312312 15 (6) The total number of open protected accounts for low
313313 16 income customers.
314314 17 (7) The total number of open low income customer accounts
315315 18 that were delinquent for at least sixty (60) days and not more
316316 19 than ninety (90) days.
317317 20 (8) The total dollar amount owed with respect to the accounts
318318 21 identified under subdivision (7).
319319 22 (9) The total number of open low income customer accounts
320320 23 that were delinquent for more than ninety (90) days.
321321 24 (10) The total dollar amount owed with respect to the
322322 25 accounts identified under subdivision (9).
323323 26 (11) The total number of low income customer accounts
324324 27 referred for collection to an attorney or a collection agency.
325325 28 (12) The total number of new payment plans entered into
326326 29 between the utility and low income customers of the utility.
327327 30 (13) The total number of new budget billing arrangements
328328 31 entered into between the utility and low income customers of
329329 32 the utility.
330330 33 (14) The total number of low income customer accounts sent
331331 34 a notice of disconnection for nonpayment.
332332 35 (15) The total number of utility service disconnections
333333 36 performed for nonpayment.
334334 37 (16) The total number of utility service restorations after
335335 38 disconnection for nonpayment.
336336 39 (17) The average duration of utility service disconnection for
337337 40 low income customer accounts identified under subdivision
338338 41 (16).
339339 42 (18) The total number of low income customer accounts
340340 2024 IN 278—LS 6913/DI 101 8
341341 1 written off as uncollectible.
342342 2 (19) The total dollar value of low income customer accounts
343343 3 identified under subdivision (18).
344344 4 (20) The total dollar value of recovered bad debt with respect
345345 5 to low income customer accounts.
346346 6 (21) Any other relevant information concerning low income
347347 7 customer accounts that the commission:
348348 8 (A) considers appropriate in evaluating:
349349 9 (i) the payment history of low income customers; and
350350 10 (ii) the billing and related practices of utilities with
351351 11 respect to low income customers; and
352352 12 (B) requires under rules adopted under section 9 of this
353353 13 chapter.
354354 14 (c) A utility may report the information and data required
355355 15 under subsections (a) and (b) at the same time and on the same
356356 16 form, if so prescribed by the commission in rules adopted under
357357 17 section 9 of this chapter.
358358 18 (d) A utility shall report all information and data required
359359 19 under subsections (a) and (b) in the aggregate and in a manner that
360360 20 does not identify individual customers and low income customers
361361 21 of the utility.
362362 22 (e) This section does not empower the commission to require
363363 23 utilities to disclose confidential and proprietary business
364364 24 information without adequate protection of the information. The
365365 25 commission shall exercise all necessary caution to avoid disclosure
366366 26 of any confidential information reported by utilities under this
367367 27 section.
368368 28 Sec. 9. The commission shall adopt rules under IC 4-22-2 to
369369 29 implement this chapter.
370370 30 Sec. 10. Beginning in 2026, the commission shall annually
371371 31 compile and summarize the information received from utilities
372372 32 under section 8 of this chapter for the previous calendar year and
373373 33 include the commission's summary of the information in the
374374 34 commission's annual report under IC 8-1-1-14.
375375 35 SECTION 3. [EFFECTIVE UPON PASSAGE] (a) As used in this
376376 36 SECTION, "commission" refers to the Indiana utility regulatory
377377 37 commission created by IC 8-1-1-2.
378378 38 (b) As used in this SECTION, "utility" means an electric, gas,
379379 39 or water utility, including a municipally owned, privately owned,
380380 40 or cooperatively owned utility, subject to IC 8-1-2-121, as amended
381381 41 by this act.
382382 42 (c) Not later than May 1, 2024, the commission shall amend the
383383 2024 IN 278—LS 6913/DI 101 9
384384 1 following rules of the commission as necessary to conform the rules
385385 2 with IC 8-1-2-121, as amended by this act:
386386 3 (1) 170 IAC 4.
387387 4 (2) 170 IAC 5.
388388 5 (3) 170 IAC 6.
389389 6 (4) Any other rule that:
390390 7 (A) has been adopted by the commission; and
391391 8 (B) is inconsistent with IC 8-1-2-121, as amended by this
392392 9 act.
393393 10 (d) Not later than June 1, 2024, a utility shall do the following:
394394 11 (1) Amend any tariff of the utility that:
395395 12 (A) is in effect on March 14, 2024, for residential
396396 13 customers of the utility; and
397397 14 (B) is inconsistent with IC 8-1-2-121, as amended by this
398398 15 act;
399399 16 to conform the tariff with IC 8-1-2-121, as amended by this
400400 17 act.
401401 18 (2) File with the commission a petition for approval of each
402402 19 tariff amended under subdivision (1).
403403 20 (e) The commission shall either:
404404 21 (1) approve an amended tariff filed by a utility under
405405 22 subsection (d)(2); or
406406 23 (2) require the utility to make any changes to the utility's
407407 24 amended tariff necessary to conform the tariff with
408408 25 IC 8-1-2-121, as amended by this act, as determined by the
409409 26 commission;
410410 27 not later than fourteen (14) days after receipt of the utility's
411411 28 petition under subsection (d)(2).
412412 29 (f) This SECTION expires January 1, 2025.
413413 30 SECTION 4. An emergency is declared for this act.
414414 2024 IN 278—LS 6913/DI 101