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

Plain English Breakdown

The official source material does not provide specific details on how the IURC's decisions will impact electricity companies' profits or investments.

Electricity Rate Rules for Indiana

This act changes rules about when electricity companies can raise prices and requires the Indiana Utility Regulatory Commission (IURC) to consider how these price increases affect low-income customers' bills and company investments.

What This Bill Does

• Requires the IURC to look at whether a proposed rate increase would make monthly bills more than 6% of a typical low-income customer's income.
• Asks the IURC to compare how much money electricity companies give to shareholders versus how much they spend on improving their systems and infrastructure.
• Needs the IURC to hold at least two public meetings in areas where the electricity company serves customers.

Who It Names or Affects

• Electricity suppliers who want to increase basic rates and charges after December 31, 2025.
• Low-income customers whose monthly bills could be affected by rate increases.
• The Indiana Utility Regulatory Commission (IURC) which will have new rules to follow when reviewing rate cases.

Terms To Know

Indiana Utility Regulatory Commission (IURC)

A government agency that oversees and regulates utilities in Indiana, including electricity companies.

Base rates

The basic prices charged by a utility company for its services before any additional charges or taxes are added.

Limits and Unknowns

• It is not clear what specific actions the IURC will take based on their findings.
• The bill does not specify how the IURC's decisions will affect electricity companies' profits or investments.

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning utilities.
Base rate cases for electricity suppliers.

Current Bill Text

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

Base rate cases for electricity suppliers.

Provides that in a base rate proceeding that is filed with or pending before the Indiana utility regulatory commission (IURC) after December 31, 2025, for an increase in an electricity supplier's basic rates and charges, the IURC shall do the following: (1) Consider whether the requested increase would result, upon full implementation, in an average monthly residential bill that would represent more than 6% of a representative low income customer's monthly income. (2) Consider and compare the following: (A) The total amount of the electricity supplier's actual return that was distributed to shareholders in the form of dividends, or reinvested by the electricity supplier in its own stock, during the period extending back to the IURC's last order approving the electricity supplier's basic rates and charges (relevant period). (B) The sum of the total amount of the electricity supplier's actual return for the relevant period that was invested in infrastructure or improvements to the electricity supplier's system, plus the amount of capital investments that are associated with a set of discrete and identifiable capital spending projects that will be placed in service within a reasonable time after the end of the electricity supplier's 12 month test period in the proceeding. (3) Hold at least two public hearings in the electricity supplier's service area. Provides that in the IURC's final order in the proceeding, the IURC shall include: (1) the IURC's findings with respect to the considerations required under the bill; and (2) a discussion of how the IURC took those findings into account in reaching the decisions set forth in the order.