LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6245 NOTE PREPARED: Nov 22, 2024
BILL NUMBER: SB 212 BILL AMENDED:
SUBJECT: Natural Gas and Electric Utility Infrastructure.
FIRST AUTHOR: Sen. Glick BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: Entitles Utility Connection Applicant to Technical Advisory Meeting: This bill
provides that an applicant that seeks: (1) the installation or extension of electric or natural gas utility
infrastructure; (2) electric or natural gas utility service; or (3) both; in connection with certain development
projects is entitled to request and convene, before commencing construction on the project, at least one
technical advisory meeting with each utility whose service area includes the project site. The bill also defines
a "technical advisory meeting" and sets forth the procedures and time frame for requesting and holding a
technical advisory meeting.
Requires Extension Agreements: The bill requires an applicant and a utility to enter into an extension
agreement before construction of a project commences, regardless of whether a technical advisory meeting
is requested or held. This bill defines an "extension agreement" and also sets forth the required elements of
an extension agreement.
It also provides that before agreeing to extend utility infrastructure to a project site in connection with the
project, a natural gas utility must provide the applicant with a written summary that explains the obligations
and commitments that apply to: (1) the utility; (2) the applicant; and (3) the customers to be initially served
by the extension of the utility infrastructure upon its installation; under the Indiana Utility Regulatory
Commission's (IURC) rule on the extension of gas distribution mains. It also sets forth the information
required to be included in the summary.
Sets Extension Agreement Complaint Process: This bill provides that an applicant or a utility may submit
an informal complaint to the IURC's consumer affairs division in connection with the bill's provisions
concerning technical advisory meetings and extension agreements and provides that if the IURC determines
that it requires additional staff to handle the volume of informal complaints submitted, the IURC may impose
a fee on a party against whom a decision is rendered. The bill provides that the fee may not exceed the lesser
of: (1) the IURC's actual costs in handling the informal complaint; or (2) $750.
Effective Date: July 1, 2025.
SB 212 1 Explanation of State Expenditures: This bill will increase the IURC’s workload concerning utility
connection technical advisory meetings and informal complaints. The bill will also increase the IURC’s
workload to create a prescribed form to provide a written summary explaining obligations and commitments
for an extension of utility service. Increases in workload are within the routine administrative function of the
agency and are expected to be accomplished within existing resource and funding levels.
Additionally, the bill establishes an informal complaint procedure that can be filed by either a utility or an
applicant for an extension of utility service. Under the bill, the IURC Consumer Affairs Division would hear
informal complaints. If the number of informal complaints filed with the IURC exceeds what the staff can
accommodate, the bill allows the IURC to charge an informal complaint filing fee. The collection of a fee
could offset any impact to the IURC’s workload and expenditures to hear informal complaints.
Explanation of State Revenues: The bill allows the IURC to collect an informal complaint filing fee under
certain conditions. The fee is not authorized to exceed the actual costs of hearing informal complaints or
$750, whichever is less. To the extent the IURC elects to collect filing fees to administer the bill’s
requirements, state revenue will increase. Increases in state revenue are indeterminable and will depend on
the cost of hearing individual complaints and the number of complaints filed.
Explanation of Local Expenditures: The bill could increase municipal utility workload in accordance with
the requirements in the bill to the extent a utility elects to extend service to development projects in the state.
Additionally, local workload could increase to file informal complaints and local expenditures could increase
as well if the IURC elects to collect a filing fee.
Explanation of Local Revenues:
State Agencies Affected: Indiana Utility Regulatory Commission
Local Agencies Affected: Municipal utilities.
Information Sources:
Fiscal Analyst: Abdulrahman Abdulkadri, 317-232-9852.
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