Introduced Version
SENATE BILL No. 434
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 8-1-10.5.
Synopsis: Utility transparency and reporting. Provides that the Indiana
utility regulatory commission (IURC) may not authorize a public utility
that: (1) provides retail electric or natural gas service; and (2) is under
the IURC's jurisdiction for the approval of rates and charges; (utility)
to recover through the utility's retail rates and charges any direct or
indirect costs associated with specified expenses and activities related
to lobbying, legislative action, political activities, charitable giving,
litigation, investor relations, and other specified activities and
expenses. Beginning in 2025, requires a utility to file with the IURC an
annual report that includes specified information concerning costs to:
(1) the utility; or (2) an affiliate of the utility; that are related to these
expenses or activities and that are directly billed or allocated to the
utility. Requires the IURC to make available on the IURC's website a
direct link to the annual reports provided by all utilities under these
provisions. Provides that on any customer bill issued by a utility after
December 31, 2025, the utility must include a break down of the
charges and fees that make up the total amount owed, including a
description of the service or cost associated with each charge or fee.
Sets forth certain charges and fees that must be delineated as specific
line items on each customer bill.
Effective: July 1, 2025.
Hunley
January 13, 2025, read first time and referred to Committee on Utilities.
2025 IN 434—LS 7526/DI 101 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 434
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 8-1-10.5 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]:
4 Chapter 10.5. Utility Transparency and Reporting
5 Sec. 1. (a) As used in this chapter, "affiliate" means any person
6 who directly or indirectly:
7 (1) controls;
8 (2) is controlled by; or
9 (3) is under the common control of;
10 another person.
11 (b) The term includes a parent company or a subsidiary.
12 Sec. 2. As used in this chapter, "commission" refers to the
13 Indiana utility regulatory commission created by IC 8-1-1-2.
14 Sec. 3. As used in this chapter, "utility" means a public utility
15 (as defined in IC 8-1-2-1(a)) that:
16 (1) provides retail:
17 (A) electric; or
2025 IN 434—LS 7526/DI 101 2
1 (B) natural gas;
2 service to the public; and
3 (2) is under the jurisdiction of the commission for the
4 approval of rates and charges.
5 Sec. 4. (a) The commission may not authorize a utility to recover
6 through the utility's retail rates and charges any direct or indirect
7 costs associated with the following:
8 (1) Membership dues, sponsorship fees, or monetary
9 contributions paid to:
10 (A) a business or industry trade group or association; or
11 (B) a not-for-profit affiliate of the utility.
12 (2) Lobbying, legislative action, or other political activities,
13 including research, analysis, preparation, planning, or other
14 activities undertaken in support of lobbying or legislative
15 action.
16 (3) Advertising, marketing, or communications undertaken to
17 influence public opinion.
18 (4) Travel, lodging, or food and beverage expenses for:
19 (A) the utility's officers or board of directors; or
20 (B) the officers or board of directors of an affiliate of the
21 utility.
22 (5) Entertainment or gifts.
23 (6) Leasing, owning, or chartering an aircraft for use by:
24 (A) the utility's officers or board of directors; or
25 (B) the officers or board of directors of an affiliate of the
26 utility.
27 (7) Charitable giving, including contributions to any
28 not-for-profit organization exempt from federal income
29 taxation under Section 501(c)(3) or 501(c)(4) of the Internal
30 Revenue Code, and any expenses related to charitable giving.
31 (8) Compensation paid to an employee, if any portion of the
32 employee's time in a given year is spent on lobbying,
33 legislative action, or other political activities.
34 (9) Compensation paid to an employee, if any portion of the
35 employee's time in a given year is spent litigating or appealing
36 legislation or commission rulings.
37 (10) Litigation regarding existing or proposed statutes,
38 regulations, ordinances, or legislation at the federal, state, or
39 local level.
40 (11) Any expenses related to:
41 (A) products;
42 (B) services; or
2025 IN 434—LS 7526/DI 101 3
1 (C) programs;
2 that are not regulated by the commission, including any
3 marketing, administrative, or customer service related
4 expenses for such products, services, or programs.
5 (12) Investor relations.
6 (b) Beginning in 2025, a utility shall file with the commission, at
7 the time and in the form and manner prescribed by the
8 commission, an annual report that includes the following
9 information concerning each activity or expense described in
10 subsection (a):
11 (1) For each expense or activity described in subsection (a),
12 the total costs to:
13 (A) the utility; or
14 (B) an affiliate of the utility;
15 that are directly billed or allocated to the utility. The amounts
16 set forth under this subdivision must be separately delineated
17 for each expense or activity described in subsection (a).
18 (2) The job title, job description, and salary of any employee
19 of the utility who performed work associated with the
20 activities described in subsection (a)(2), (a)(3), (a)(8), (a)(9),
21 (a)(10), (a)(11), or (a)(12) for the utility, along with the
22 number of hours attributable to such work by the employee.
23 (3) The job title, job description, and salary of any employee
24 of an affiliate of the utility who performed work associated
25 with the activities described in subsection (a)(2), (a)(3), (a)(8),
26 (a)(9), (a)(10), (a)(11), or (a)(12), along with the number of
27 hours attributable to such work by the employee, to the extent
28 that the costs associated with the work are directly billed or
29 allocated to the utility.
30 (4) An itemized list of the amounts billed or allocated to the
31 utility by third party vendors for any expenses or activities
32 described in subsection (a), including unredacted billing
33 amounts, billing dates, payees, and explanations of each
34 expenditure in sufficient detail to indicate the expenditure's
35 purpose, including, if applicable, all Federal Energy
36 Regulatory Commission Uniform System of Account codes for
37 which payment to the vendor was recorded.
38 (5) A list of all divisions, departments, or other organizational
39 groups within the utility that performed any activities
40 described in subsection (a). For each division, department, or
41 group identified, the utility shall include a list of the
42 employees who work in the division, department, or group.
2025 IN 434—LS 7526/DI 101 4
1 For each employee listed, the utility shall provide the
2 following information:
3 (A) The employee's job title.
4 (B) A job description sufficient to describe the employee's
5 responsibilities.
6 (C) An identification of each activity described in
7 subsection (a) in which the employee engages, including a
8 description sufficient to describe the nature of each
9 activity.
10 (D) The employee's total annual compensation and the
11 percentage of that compensation paid for work associated
12 with activities described in subsection (a), including, if
13 applicable, all Federal Energy Regulatory Commission
14 Uniform System of Account codes for which payment to
15 the employee was recorded.
16 (c) The commission shall make available on the commission's
17 website a direct link to the annual reports provided by utilities
18 under this section, subject to the commission's duty to redact or
19 exclude any information that the commission is prohibited from
20 disclosing under state or federal law.
21 Sec. 5. (a) On any customer bill issued by a utility after
22 December 31, 2025, the utility must include a break down of the
23 charges and fees that make up the total amount owed for the billing
24 cycle, including a description of the service or cost associated with
25 each charge or fee, if not apparent on its face. To the extent
26 applicable, the following must be delineated as specific line items
27 on each customer bill:
28 (1) Distribution and delivery charges.
29 (2) Generation and supply charges, including the cost per unit
30 consumed.
31 (3) Individual program charges, separately stated for each
32 program for which the customer is charged, including energy
33 efficiency programs, low income assistance programs,
34 demand response programs, and any other programs outside
35 the provision of basic service.
36 (4) Account or program credits.
37 (5) Taxes.
38 (6) Account management and billing fees.
39 (7) Any other applicable charges or fees.
40 (b) A utility shall take appropriate internal operational
41 measures to separate the utility's costs so as to accurately reflect
42 those costs in associated charges and fees charged to customers and
2025 IN 434—LS 7526/DI 101 5
1 itemized in customer bills under subsection (a).
2025 IN 434—LS 7526/DI 101