A BILL FOR AN ACT to amend the Indiana Code concerning utilities.

Plain English Breakdown

The bill summary does not provide detailed information about how expenses for forensic audits will be paid, what actions utilities must take after an audit order, or under what conditions suspected criminal activities might be reported.

Indiana Utility Regulatory Commission (IURC) Audit Law

This bill requires the state board of accounts to conduct audits of the Indiana Utility Regulatory Commission's finances every three years, starting in 2026, and allows for forensic audits of public utilities under certain conditions.

What This Bill Does

• Requires the state board of accounts to audit the IURC's funds, accounts, financial affairs, and compliance matters every three years, beginning in 2026.
• Allows the IURC to conduct forensic audits of public utilities if there is good cause or when reviewing basic rates and charges changes after December 31, 2025.
• Specifies that an independent accounting firm can be hired by the IURC for these audits.
• Gives the IURC power to order corrections from utilities based on audit findings.
• Requires reporting suspected criminal activities found during audits to law enforcement.

Who It Names or Affects

• The Indiana Utility Regulatory Commission (IURC)
• Public utility companies in Indiana
• State board of accounts

Terms To Know

Forensic audit

A detailed examination to find evidence of illegal or fraudulent activities.

Base rate case

A review by the IURC to decide if a public utility can change its basic rates and charges.

Limits and Unknowns

• The bill does not specify how expenses for forensic audits will be paid.
• It is unclear what specific actions utilities must take after an audit order from the IURC.
• There are no details on how often or under what conditions suspected criminal activities might be reported.

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning utilities.
IURC and utility audits.

Current Bill Text

A BILL FOR AN ACT to amend the Indiana Code concerning utilities.

IURC and utility audits.

Provides that every three years, beginning in 2026, the state board of accounts shall conduct an audit of the funds, accounts, financial affairs, and all compliance related matters of the Indiana utility regulatory commission (IURC) for the state fiscal year ending in the year in which the audit is conducted. Provides that a report of an audit conducted under these provisions must be submitted to the executive director of the legislative services agency for distribution to members of the general assembly. Provides that the IURC: (1) may, with good cause, as part of an examination, inquiry, or investigation authorized by specified statutes conduct a forensic audit of a public utility; and (2) shall as part of a base rate case that is filed with or pending before the IURC after December 31, 2025, for a change in a public utility's basic rates and charges, conduct a forensic audit of the public utility. Authorizes the IURC to appoint: (1) an independent accounting firm; or (2) another qualified agent; with experience or expertise in conducting forensic audits to conduct a forensic audit under these provisions. Specifies the scope of a forensic audit under these provisions. Provides that upon the completion of a forensic audit, the IURC may do the following: (1) Issue an order directing the public utility to take actions to correct or cure certain acts or practices examined as part of the audit. (2) Refer any suspected criminal activities uncovered during the audit to an appropriate law enforcement agency or prosecutorial agency or official. Specifies how expenses incurred by the IURC or the IURC's agent in conducting a forensic audit under this section shall be charged and paid.