LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7459 NOTE PREPARED: Mar 24, 2025
BILL NUMBER: SB 422 BILL AMENDED: Jan 30, 2025
SUBJECT: Advanced Transmission Technologies.
FIRST AUTHOR: Sen. Koch BILL STATUS: Enrolled
FIRST SPONSOR: Rep. Soliday
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill defines "advanced transmission technologies" as software or hardware
technologies that increase the capacity, efficiency, reliability, or safety of an existing or new electric
transmission system. It also provides that in any integrated resource plan (IRP) filed with the Indiana Utility
Regulatory Commission (IURC) after December 31, 2025, an electric utility must include an evaluation of
the potential use of, or investment in, one or more advanced transmission technologies to enable the electric
utility to safely, reliably, efficiently, and cost effectively meet electric system demand. The bill also provides
that in any IRP filed with the IURC after December 31, 2029, an electric utility must include an evaluation
of the electric utility's transmission and distribution systems, as specified by the IURC. The bill requires the
IURC to conduct a study to evaluate the potential use or deployment of advanced transmission technologies
by public utilities, sets forth specific topics that the IURC must evaluate as part of the study, and requires
the IURC to include in its 2026 annual report the commission's findings with respect to the topics evaluated
in the study. It also provides that advanced transmission technologies qualify as eligible transmission,
distribution, and storage system improvements for purposes of the statute that authorizes a public utility to
recover eligible costs incurred in connection with investments made in such improvements.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The bill will increase the workload of the IURC to conduct the required
study evaluating potential use or development of advanced transmission technologies by public utilities and
increases in workload are expected to be accomplished within existing resource and funding levels.
The bill allows the IURC to consult with stakeholders and subject matter experts, including the Office of the
Utility Consumer Counselor (OUCC), which could also increase the OUCC’s workload. The study findings
are required to be included in the IURC’s annual report no later than October 1, 2026.
The study will seek to find if various advanced transmission technologies do the following:
• Increase transmission capacity
• Increase transmission efficiency
• Reduce transmission congestion
SB 422 1 • Reduce the curtailment of generation resources
• Increase system reliability
• Increase system resiliency
• Increase the capacity to connect new energy generation resources
Additional Information - The operating budget of the IURC is funded by regulated utilities operating in
Indiana. The rate at which to bill the utilities is based on the agencies' budgets, 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: This bill will increase the workload of municipal utilities in complying
with new advanced transmission technology statutes. The costs of installation of advanced transmission
technology may be offset by energy production cost savings from the technology. Evaluations on
transmission and distribution systems will also need to be submitted to the IURC starting in CY 2030.
Explanation of Local Revenues:
State Agencies Affected: IURC.
Local Agencies Affected: Municipal utilities.
Information Sources:
Fiscal Analyst: Abdul Abdulkadri, 317-232-9852.
SB 422 2