Indiana 2025 Regular Session

Indiana Senate Bill SB0422 Compare Versions

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1+*ES0422.1*
2+March 10, 2025
3+ENGROSSED
4+SENATE BILL No. 422
5+_____
6+DIGEST OF SB 422 (Updated March 4, 2025 11:26 am - DI 140)
7+Citations Affected: IC 8-1.
8+Synopsis: Advanced transmission technologies. Defines "advanced
9+transmission technologies" as software or hardware technologies that
10+increase the capacity, efficiency, reliability, or safety of an existing or
11+new electric transmission facility. Provides that in any integrated
12+resource plan (IRP) filed with the Indiana utility regulatory commission
13+(IURC) after December 31, 2025, an electric utility that owns or
14+operates a transmission or distribution system must include a
15+description of the potential use of, or investment in, one or more
16+advanced transmission technologies to enable the electric utility to
17+safely, reliably, efficiently, and cost effectively meet electric system
18+demand. Provides that in any IRP filed with the IURC after December
19+31, 2029, an electric utility that owns or operates a transmission or
20+(Continued next page)
21+Effective: July 1, 2025.
22+Koch, Byrne, Leising, Schmitt
23+(HOUSE SPONSOR — SOLIDAY)
24+January 13, 2025, read first time and referred to Committee on Utilities.
25+January 30, 2025, amended, reported favorably — Do Pass.
26+February 3, 2025, read second time, ordered engrossed. Engrossed.
27+February 4, 2025, read third time, passed. Yeas 49, nays 0.
28+HOUSE ACTION
29+March 3, 2025, read first time and referred to Committee on Utilities, Energy and
30+Telecommunications.
31+March 10, 2025, reported — Do Pass.
32+ES 422—LS 7459/DI 101 Digest Continued
33+distribution system must include a description of the electric utility's
34+transmission and distribution systems, as specified by the IURC.
35+Requires the IURC to conduct a study to evaluate the potential use or
36+deployment of advanced transmission technologies by public utilities.
37+Sets forth specific topics that the IURC must evaluate as part of the
38+study. Requires the IURC to include in its 2026 annual report the
39+commission's findings with respect to the topics evaluated in the study.
40+Provides that advanced transmission technologies qualify as eligible
41+transmission, distribution, and storage system improvements for
42+purposes of the statute that authorizes a public utility to recover eligible
43+costs incurred in connection with investments made in such
44+improvements.
45+ES 422—LS 7459/DI 101ES 422—LS 7459/DI 101 March 10, 2025
146 First Regular Session of the 124th General Assembly (2025)
247 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
348 Constitution) is being amended, the text of the existing provision will appear in this style type,
449 additions will appear in this style type, and deletions will appear in this style type.
550 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
651 provision adopted), the text of the new provision will appear in this style type. Also, the
752 word NEW will appear in that style type in the introductory clause of each SECTION that adds
853 a new provision to the Indiana Code or the Indiana Constitution.
954 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
1055 between statutes enacted by the 2024 Regular Session of the General Assembly.
11-SENATE ENROLLED ACT No. 422
12-AN ACT to amend the Indiana Code concerning utilities.
56+ENGROSSED
57+SENATE BILL No. 422
58+A BILL FOR AN ACT to amend the Indiana Code concerning
59+utilities.
1360 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 8-1-8.5-3.4 IS ADDED TO THE INDIANA CODE
15-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
16-1, 2025]: Sec. 3.4. (a) As used in this section, "advanced
17-transmission technologies" means software or hardware
18-technologies that increase the capacity, efficiency, reliability, or
19-safety of an existing or new electric transmission facility, including:
20-(1) grid enhancing technologies, such as dynamic line rating,
21-advanced power flow controllers, and topology optimization;
22-(2) advanced conductors; and
23-(3) other technologies designed to:
24-(A) reduce transmission congestion; or
25-(B) increase the capacity, efficiency, reliability, or safety of
26-an existing or new electric transmission facility.
27-(b) As used in this section, "electric utility" refers to an electric
28-utility that:
61+1 SECTION 1. IC 8-1-8.5-3.4 IS ADDED TO THE INDIANA CODE
62+2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
63+3 1, 2025]: Sec. 3.4. (a) As used in this section, "advanced
64+4 transmission technologies" means software or hardware
65+5 technologies that increase the capacity, efficiency, reliability, or
66+6 safety of an existing or new electric transmission facility, including:
67+7 (1) grid enhancing technologies, such as dynamic line rating,
68+8 advanced power flow controllers, and topology optimization;
69+9 (2) advanced conductors; and
70+10 (3) other technologies designed to:
71+11 (A) reduce transmission congestion; or
72+12 (B) increase the capacity, efficiency, reliability, or safety of
73+13 an existing or new electric transmission facility.
74+14 (b) As used in this section, "electric utility" refers to an electric
75+15 utility that:
76+16 (1) is listed in 170 IAC 4-7-2(a); and
77+17 (2) owns and operates a transmission or distribution system.
78+ES 422—LS 7459/DI 101 2
79+1 (c) In any integrated resource plan filed with the commission
80+2 under 170 IAC 4-7 after December 31, 2025, an electric utility must
81+3 include a description of the potential use of, or investment in, one
82+4 (1) or more advanced transmission technologies to enable the
83+5 electric utility to safely, reliably, efficiently, and cost effectively
84+6 meet electric system demand, taking into consideration cost, risk,
85+7 uncertainty, and the alternative investments needed to build new
86+8 transmission infrastructure if advanced transmission technologies
87+9 are not deployed.
88+10 (d) In any integrated resource plan filed with the commission
89+11 under 170 IAC 4-7 after December 31, 2029, an electric utility must
90+12 include a description of the electric utility's transmission and
91+13 distribution systems, as applicable, as specified by the commission
92+14 under 170 IAC 4-7.
93+15 SECTION 2. IC 8-1-8.5-14 IS ADDED TO THE INDIANA CODE
94+16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
95+17 1, 2025]: Sec. 14. (a) As used in this section, "advanced
96+18 transmission technologies" means software or hardware
97+19 technologies that increase the capacity, efficiency, reliability, or
98+20 safety of an existing or new electric transmission facility, including:
99+21 (1) grid enhancing technologies, such as dynamic line rating,
100+22 advanced power flow controllers, and topology optimization;
101+23 (2) advanced conductors; and
102+24 (3) other technologies designed to:
103+25 (A) reduce transmission congestion; or
104+26 (B) increase the capacity, efficiency, reliability, or safety of
105+27 an existing or new electric transmission facility.
106+28 (b) As used in this section, "public utility" has the meaning set
107+29 forth in section 1 of this chapter.
108+30 (c) The commission shall conduct a study to evaluate the
109+31 potential use or deployment of advanced transmission technologies
110+32 by public utilities to enable public utilities to:
111+33 (1) safely, reliably, efficiently, and cost effectively meet
112+34 electric system demand; and
113+35 (2) provide safe, reliable, and affordable electric utility service
114+36 to customers.
115+37 (d) In conducting the study, the commission shall evaluate the
116+38 following:
117+39 (1) The attributes, functions, costs, and benefits of various
118+40 advanced transmission technologies, including grid enhancing
119+41 technologies and advanced conductors. In evaluating the
120+42 attributes of various advanced transmission technologies
121+ES 422—LS 7459/DI 101 3
122+1 under this subdivision, the commission shall consider whether
123+2 a particular technology does the following:
124+3 (A) Increases transmission capacity.
125+4 (B) Increases transmission efficiency.
126+5 (C) Reduces transmission congestion.
127+6 (D) Reduces the curtailment of generation resources.
128+7 (E) Increases system reliability.
129+8 (F) Increases system resiliency.
130+9 (G) Increases the capacity to connect new energy
131+10 generation resources.
132+11 (2) The potential of each of the advanced transmission
133+12 technologies studied to be used or deployed by public utilities
134+13 to provide safe, reliable, and affordable electric utility service
135+14 to customers in Indiana, considering existing and planned
136+15 transmission infrastructure and projected demand growth.
137+16 (3) Potential reductions in project costs and project
138+17 completion timelines by deploying advanced transmission
139+18 technologies, as compared to traditional transmission
140+19 infrastructure.
141+20 (4) Potential ways to streamline the deployment of advanced
142+21 transmission technologies, including streamlined processes for
143+22 permitting, maintenance, and upgrades.
144+23 (5) Any other aspect of advanced transmission technologies
145+24 that the commission determines will assist policymakers,
146+25 public utilities, ratepayers, and other stakeholders in
147+26 understanding the potential role of advanced transmission
148+27 technologies in the transmission system serving Indiana and
149+28 the region.
150+29 (e) In conducting the study required by this section, the
151+30 commission may consult with or invite comments from:
152+31 (1) regional transmission organizations;
153+32 (2) the Federal Energy Regulatory Commission or other
154+33 federal regulators;
155+34 (3) public utilities;
156+35 (4) the office of the utility consumer counselor;
157+36 (5) associations or organizations representing utility
158+37 ratepayers;
159+38 (6) regulatory commissions in other states;
160+39 (7) engineers or other experts; or
161+40 (8) other stakeholders.
162+41 The commission may incorporate any information or comments
163+42 received under this subsection in its report under subsection (f).
164+ES 422—LS 7459/DI 101 4
165+1 (f) The commission shall include in the annual report that the
166+2 commission is required to submit under IC 8-1-1-14 before
167+3 October 1, 2026, a report that includes the commission's findings
168+4 with respect to the topics outlined in subsection (d).
169+5 SECTION 3. IC 8-1-39-1.1 IS ADDED TO THE INDIANA CODE
170+6 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
171+7 1, 2025]: Sec. 1.1. As used in this chapter, "advanced transmission
172+8 technologies" means software or hardware technologies that
173+9 increase the capacity, efficiency, reliability, or safety of an existing
174+10 or new electric transmission facility, including:
175+11 (1) grid enhancing technologies, such as dynamic line rating,
176+12 advanced power flow controllers, and topology optimization;
177+13 (2) advanced conductors; and
178+14 (3) other technologies designed to:
179+15 (A) reduce transmission congestion; or
180+16 (B) increase the capacity, efficiency, reliability, or safety of
181+17 an existing or new electric transmission facility.
182+18 SECTION 4. IC 8-1-39-2, AS AMENDED BY P.L.89-2019,
183+19 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
184+20 JULY 1, 2025]: Sec. 2. (a) As used in this chapter, "eligible
185+21 transmission, distribution, and storage system improvements" means
186+22 new or replacement electric or gas transmission, distribution, or storage
187+23 utility projects that:
188+24 (1) a public utility undertakes for purposes of safety, reliability,
189+25 system modernization, or economic development, including the
190+26 extension of gas service to rural areas;
191+27 (2) were not included in the public utility's rate base in its most
192+28 recent general rate case; and
193+29 (3) either were:
194+30 (A) described in the public utility's TDSIC plan and approved
195+31 by the commission under section 10 of this chapter and
196+32 authorized for TDSIC treatment;
197+33 (B) described in the public utility's update to the public utility's
198+34 TDSIC plan under section 9 of this chapter and authorized for
199+35 TDSIC treatment by the commission; or
200+36 (C) approved as a targeted economic development project
201+37 under section 11 of this chapter.
202+38 (b) The term includes:
203+39 (1) projects that do not include specific locations or an exact
204+40 number of inspections, repairs, or replacements, including
205+41 inspection based projects such as pole or pipe inspection projects,
206+42 and pole or pipe replacement projects; and
207+ES 422—LS 7459/DI 101 5
208+1 (2) projects involving advanced technology investments to
209+2 support the modernization of a transmission, distribution, or
210+3 storage system, such as advanced metering infrastructure,
211+4 advanced transmission technologies, information technology
212+5 systems, or distributed energy resource management systems.
213+ES 422—LS 7459/DI 101 6
214+COMMITTEE REPORT
215+Mr. President: The Senate Committee on Utilities, to which was
216+referred Senate Bill No. 422, has had the same under consideration and
217+begs leave to report the same back to the Senate with the
218+recommendation that said bill be AMENDED as follows:
219+Page 1, line 6, delete "system," and insert "facility,".
220+Page 1, line 13, delete "system." and insert "facility.".
221+Page 1, line 15, delete "utility listed in 170 IAC 4-7-2(a)." and insert
222+"utility that:
29223 (1) is listed in 170 IAC 4-7-2(a); and
30-(2) owns and operates a transmission or distribution system.
31-(c) In any integrated resource plan filed with the commission
32-under 170 IAC 4-7 after December 31, 2025, an electric utility must
33-include a description of the potential use of, or investment in, one
34-(1) or more advanced transmission technologies to enable the
35-electric utility to safely, reliably, efficiently, and cost effectively
36-SEA 422 2
37-meet electric system demand, taking into consideration cost, risk,
38-uncertainty, and the alternative investments needed to build new
39-transmission infrastructure if advanced transmission technologies
40-are not deployed.
41-(d) In any integrated resource plan filed with the commission
42-under 170 IAC 4-7 after December 31, 2029, an electric utility must
43-include a description of the electric utility's transmission and
44-distribution systems, as applicable, as specified by the commission
45-under 170 IAC 4-7.
46-SECTION 2. IC 8-1-8.5-14 IS ADDED TO THE INDIANA CODE
47-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
48-1, 2025]: Sec. 14. (a) As used in this section, "advanced
49-transmission technologies" means software or hardware
50-technologies that increase the capacity, efficiency, reliability, or
51-safety of an existing or new electric transmission facility, including:
52-(1) grid enhancing technologies, such as dynamic line rating,
53-advanced power flow controllers, and topology optimization;
54-(2) advanced conductors; and
55-(3) other technologies designed to:
56-(A) reduce transmission congestion; or
57-(B) increase the capacity, efficiency, reliability, or safety of
58-an existing or new electric transmission facility.
59-(b) As used in this section, "public utility" has the meaning set
60-forth in section 1 of this chapter.
61-(c) The commission shall conduct a study to evaluate the
62-potential use or deployment of advanced transmission technologies
63-by public utilities to enable public utilities to:
64-(1) safely, reliably, efficiently, and cost effectively meet
65-electric system demand; and
66-(2) provide safe, reliable, and affordable electric utility service
67-to customers.
68-(d) In conducting the study, the commission shall evaluate the
69-following:
70-(1) The attributes, functions, costs, and benefits of various
71-advanced transmission technologies, including grid enhancing
72-technologies and advanced conductors. In evaluating the
73-attributes of various advanced transmission technologies
74-under this subdivision, the commission shall consider whether
75-a particular technology does the following:
224+(2) owns and operates a transmission or distribution system.".
225+Page 1, line 17, delete "June 30," and insert "December 31,".
226+Page 2, line 1, delete "an evaluation" and insert "a description".
227+Page 2, line 10, delete "an evaluation" and insert "a description".
228+Page 2, line 11, after "systems," insert "as applicable,".
229+Page 2, line 18, delete "system," and insert "facility,".
230+Page 2, line 25, delete "system." and insert "facility.".
231+Page 2, line 39, after "conductors." insert "In evaluating the
232+attributes of various advanced transmission technologies under
233+this subdivision, the commission shall consider whether a
234+particular technology does the following:
76235 (A) Increases transmission capacity.
77236 (B) Increases transmission efficiency.
78237 (C) Reduces transmission congestion.
79-SEA 422 3
80238 (D) Reduces the curtailment of generation resources.
81239 (E) Increases system reliability.
82240 (F) Increases system resiliency.
83241 (G) Increases the capacity to connect new energy
84-generation resources.
85-(2) The potential of each of the advanced transmission
86-technologies studied to be used or deployed by public utilities
87-to provide safe, reliable, and affordable electric utility service
88-to customers in Indiana, considering existing and planned
89-transmission infrastructure and projected demand growth.
90-(3) Potential reductions in project costs and project
91-completion timelines by deploying advanced transmission
92-technologies, as compared to traditional transmission
93-infrastructure.
94-(4) Potential ways to streamline the deployment of advanced
95-transmission technologies, including streamlined processes for
96-permitting, maintenance, and upgrades.
97-(5) Any other aspect of advanced transmission technologies
98-that the commission determines will assist policymakers,
99-public utilities, ratepayers, and other stakeholders in
100-understanding the potential role of advanced transmission
101-technologies in the transmission system serving Indiana and
102-the region.
103-(e) In conducting the study required by this section, the
104-commission may consult with or invite comments from:
105-(1) regional transmission organizations;
106-(2) the Federal Energy Regulatory Commission or other
107-federal regulators;
108-(3) public utilities;
109-(4) the office of the utility consumer counselor;
110-(5) associations or organizations representing utility
111-ratepayers;
112-(6) regulatory commissions in other states;
113-(7) engineers or other experts; or
114-(8) other stakeholders.
115-The commission may incorporate any information or comments
116-received under this subsection in its report under subsection (f).
117-(f) The commission shall include in the annual report that the
118-commission is required to submit under IC 8-1-1-14 before
119-October 1, 2026, a report that includes the commission's findings
120-with respect to the topics outlined in subsection (d).
121-SECTION 3. IC 8-1-39-1.1 IS ADDED TO THE INDIANA CODE
122-SEA 422 4
123-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
124-1, 2025]: Sec. 1.1. As used in this chapter, "advanced transmission
125-technologies" means software or hardware technologies that
126-increase the capacity, efficiency, reliability, or safety of an existing
127-or new electric transmission facility, including:
128-(1) grid enhancing technologies, such as dynamic line rating,
129-advanced power flow controllers, and topology optimization;
130-(2) advanced conductors; and
131-(3) other technologies designed to:
132-(A) reduce transmission congestion; or
133-(B) increase the capacity, efficiency, reliability, or safety of
134-an existing or new electric transmission facility.
135-SECTION 4. IC 8-1-39-2, AS AMENDED BY P.L.89-2019,
136-SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
137-JULY 1, 2025]: Sec. 2. (a) As used in this chapter, "eligible
138-transmission, distribution, and storage system improvements" means
139-new or replacement electric or gas transmission, distribution, or storage
140-utility projects that:
141-(1) a public utility undertakes for purposes of safety, reliability,
142-system modernization, or economic development, including the
143-extension of gas service to rural areas;
144-(2) were not included in the public utility's rate base in its most
145-recent general rate case; and
146-(3) either were:
147-(A) described in the public utility's TDSIC plan and approved
148-by the commission under section 10 of this chapter and
149-authorized for TDSIC treatment;
150-(B) described in the public utility's update to the public utility's
151-TDSIC plan under section 9 of this chapter and authorized for
152-TDSIC treatment by the commission; or
153-(C) approved as a targeted economic development project
154-under section 11 of this chapter.
155-(b) The term includes:
156-(1) projects that do not include specific locations or an exact
157-number of inspections, repairs, or replacements, including
158-inspection based projects such as pole or pipe inspection projects,
159-and pole or pipe replacement projects; and
160-(2) projects involving advanced technology investments to
161-support the modernization of a transmission, distribution, or
162-storage system, such as advanced metering infrastructure,
163-advanced transmission technologies, information technology
164-systems, or distributed energy resource management systems.
165-SEA 422 President of the Senate
166-President Pro Tempore
167-Speaker of the House of Representatives
168-Governor of the State of Indiana
169-Date: Time:
170-SEA 422
242+generation resources.".
243+Page 3, line 39, delete "system," and insert "facility,".
244+Page 4, line 4, delete "system." and insert "facility.".
245+and when so amended that said bill do pass.
246+(Reference is to SB 422 as introduced.)
247+KOCH, Chairperson
248+Committee Vote: Yeas 8, Nays 0.
249+ES 422—LS 7459/DI 101 7
250+COMMITTEE REPORT
251+Mr. Speaker: Your Committee on Utilities, Energy and
252+Telecommunications, to which was referred Senate Bill 422, has had
253+the same under consideration and begs leave to report the same back
254+to the House with the recommendation that said bill do pass.
255+(Reference is to SB 422 as printed January 31, 2025.)
256+SOLIDAY
257+Committee Vote: Yeas 12, Nays 0
258+ES 422—LS 7459/DI 101