Agenda for : Senate Utilities & Technology Committee
DATE: Thursday, January 20, 2011
TIME: 10:00 AM EST
PLACE: Room 233, State House, Indianapolis, IN
Chairman : Merritt
Members:
Leising R.M., Gard, Kruse, Schneider, Tomes, Yoder,
Randolph, R.M.M., Breaux, R. Young
Hearing : SB 0102 Utility recovery of federally mandated costs. (Gard, Merritt, Hume)
Digest: Utility recovery of federally mandated costs. Requires the Indiana utility regulatory commission to allow an energy utility to recover certain federally mandated costs through periodic retail rate adjustment mechanisms.
Here is the full text of the bill:
SOURCE: IC 8-1-2-6.9; (11)IN0102.1.1. --> SECTION 1. IC 8-1-2-6.9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6.9. (a) As used in this section, "energy utility" has the meaning set forth in IC 8-1-2.5-2.
(b) As used in this section, "federally mandated costs" means capital, operation, maintenance, depreciation, research and development, tax, or carrying costs that an energy utility incurs in complying with mandates that are, or with reasonable certainty will be, imposed on the energy utility by the federal government related to the following:
(1) Environmental laws, rules, regulations, or consent decrees, including clean air standards and costs associated with:
(A) reducing or offsetting the emission of greenhouse gases; or
(B) the purchase of emission allowances.
(2) Renewable portfolio or energy efficiency standards, including projects at existing generating facilities to allow for fuel switching, including the use of natural or substitute natural gas.
(3) Participation in one (1) or more industry reliability organizations, including a regional transmission organization.
(4) Transmission and distribution pipeline integrity and safety.
(c) An energy utility may petition the commission to recover federally mandated costs through a periodic retail rate adjustment mechanism. If the commission finds, after notice and hearing, that an energy utility's proposed periodic retail rate adjustment mechanism reasonably complies with this section, the commission shall approve the periodic retail rate adjustment mechanism and authorize the timely recovery of federally mandated costs by the energy utility.
(d) The commission shall adjust any changes in charges approved for an energy utility under section 42(d) or 42(g) of this chapter or IC 8-1-13-30(d), as applicable, to permit the energy utility to retain revenues resulting from a periodic retail rate adjustment mechanism approved under this section.
(b) As used in this section, "federally mandated costs" means capital, operation, maintenance, depreciation, research and development, tax, or carrying costs that an energy utility incurs in complying with mandates that are, or with reasonable certainty will be, imposed on the energy utility by the federal government related to the following:
(1) Environmental laws, rules, regulations, or consent decrees, including clean air standards and costs associated with:
(A) reducing or offsetting the emission of greenhouse gases; or
(B) the purchase of emission allowances.
(2) Renewable portfolio or energy efficiency standards, including projects at existing generating facilities to allow for fuel switching, including the use of natural or substitute natural gas.
(3) Participation in one (1) or more industry reliability organizations, including a regional transmission organization.
(4) Transmission and distribution pipeline integrity and safety.
(c) An energy utility may petition the commission to recover federally mandated costs through a periodic retail rate adjustment mechanism. If the commission finds, after notice and hearing, that an energy utility's proposed periodic retail rate adjustment mechanism reasonably complies with this section, the commission shall approve the periodic retail rate adjustment mechanism and authorize the timely recovery of federally mandated costs by the energy utility.
(d) The commission shall adjust any changes in charges approved for an energy utility under section 42(d) or 42(g) of this chapter or IC 8-1-13-30(d), as applicable, to permit the energy utility to retain revenues resulting from a periodic retail rate adjustment mechanism approved under this section.
SOURCE: ; (11)IN0102.1.2. --> SECTION 2. An emergency is declared for this act.
HB 1160 introduced by Rep. Larry Lutz (R-Anderson) who chairs the House Utilities and Energy Committee appears to be identical to SB 102.