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SB196 • 2026

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

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

Energy
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Senator Greg Walker
Last action
2026-01-06
Official status
Introduced Senate Bill (S)
Effective date
Not listed

Plain English Breakdown

The official source does not provide specific details on the consequences of failing to meet the July 1, 2028 deadline or how much electricity customers will be credited for using from community energy facilities.

Rules for Community Energy Facilities in Indiana

This bill requires the Indiana Utility Regulatory Commission to create rules about connecting and working with community energy facilities by July 1, 2028.

What This Bill Does

  • The bill tells the Indiana Utility Regulatory Commission to make rules about how community energy facilities can connect to electricity suppliers' systems by July 1, 2028.
  • Electricity suppliers must allow interconnection with community energy facilities if at least three of their customers sign up for it.
  • The commission has to form a group with people who work in electricity and other interested groups to help make these rules.
  • Investor-owned utilities cannot own or give incentives to community energy facilities.

Who It Names or Affects

  • Electricity suppliers
  • Customers of electricity suppliers
  • Community energy facility owners

Terms To Know

community energy facilities
Local power plants or systems that provide electricity to a community.
interconnection
Connecting two different electrical systems so they can share power.

Limits and Unknowns

  • The bill does not specify the consequences if rules are not made by July 1, 2028.
  • It is unclear how much electricity customers will be credited for using from community energy facilities.

Bill History

  1. 2026-01-06 Senate

    Authored by Senator Walker G

  2. 2026-01-06 Senate

    First reading: referred to Committee on Utilities

Official Summary Text

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

Current Bill Text

Read the full stored bill text
A BILL FOR AN ACT to amend the Indiana Code concerning utilities.

Community energy facilities.

Requires the Indiana utility regulatory commission (commission) to adopt rules governing community energy facilities not later than July 1, 2028. Provides that, not later than 180 days after adoption of the rules, an electricity supplier shall begin: (1) allowing interconnection of the electricity supplier's facilities with community energy facilities with which at least three of the electricity supplier's customers have entered into a subscription; and (2) crediting the electricity supplier's subscribing customers for the amount of electricity from the community energy facility to which the customer subscribes. Requires the commission to: (1) establish an interconnection working group composed of representatives of electricity suppliers and other stakeholders with respect to electric utility service; and (2) implement the working group's recommendations regarding creation, revision, or elimination of policies, processes, tariffs, rules, or standards relating to the interconnection of community energy facilities and electricity suppliers as necessary for transparent, accurate, and efficient implementation of community energy facilities. Prohibits an investor owned utility from: (1) owning a community energy facility; or (2) offering incentive programs to community energy facilities.