HOUSE BILL No. 1181
DIGEST OF INTRODUCED BILL
Citations Affected: IC 8-1-2-42.2; IC 8-1-2-42.5.
Synopsis: Rate adjustment mechanisms for utilities. Provides that not
later than four years after the effective date of an order of the Indiana
utility regulatory commission (IURC) approving a rate adjustment
mechanism for an energy utility, the office of utility consumer
counselor (OUCC) may file a petition requesting that the IURC review,
and revise as necessary, the utility's basic rates and charges. Requires
the IURC to use the procedures governing a general rate case in
conducting the review.
Effective: January 1, 2008 (retroactive).
January 10, 2008, read first time and referred to Committee on Commerce, Energy and
Second Regular Session 115th General Assembly (2008)
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HOUSE BILL No. 1181
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities and transportation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 8-1-2-42.2; (08)IN1181.1.1. -->
SECTION 1. IC 8-1-2-42.2 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008 (RETROACTIVE)]: Sec. 42.2. (a) This section
applies to a rate adjustment mechanism that is approved by the
commission after December 31, 2007.
(b) As used in this section, "rate adjustment mechanism" means
a mechanism, other than a general rate case, by which the
commission allows a utility to timely recover, through the utility's
retail service rates, certain costs incurred by the utility. The term
includes any mechanism used by the commission under the
(1) section 6.6, 6.8, 42, or 42.1 of this chapter;
(2) IC 8-1-2.5 or IC 8-1-8.8;
(3) any other law; or
(4) any rule or order of the commission.
(c) As used in this section, "utility" refers to a public,
municipally owned, or cooperatively owned utility:
(1) that owns, operates, manages, or controls any plant or
equipment in Indiana for the production, transmission,
delivery, or furnishing of gas, electricity, or steam; and
(2) whose rates and charges are regulated by the commission.
(d) Not later than four (4) years after the effective date of a
commission order approving a rate adjustment mechanism for a
utility, the office of utility consumer counselor may file a petition
with the commission requesting the commission to review, and
revise as necessary, the utility's basic rates and charges, regardless
of whether the utility has filed a request for a general increase in
its basic rates and charges under section 42(a) of this chapter.
Upon receiving a petition under this section, the commission shall
conduct the requested review using the procedures:
(1) governing a general rate case; and
(2) established by:
(A) this chapter; or
(B) any rule adopted by the commission.
(e) The pendency of a review described in subsection (d) does
not prohibit a utility from seeking one (1) or more additional rate
adjustment mechanisms from the commission while the review is
pending. If a utility seeks one (1) or more additional rate
adjustment mechanisms during the pendency of any review under
subsection (d) concerning one (1) or more of the utility's existing
rate adjustment mechanisms, the commission may combine its
review of the new rate adjustment mechanism requested by the
utility with the review requested by the office of utility consumer
counselor under subsection (d) for one (1) or more of the utility's
existing rate adjustment mechanisms.
(f) The commission may adopt rules under IC 4-22-2 to
implement this section.
SOURCE: IC 8-1-2-42.5; (08)IN1181.1.2. -->
SECTION 2. IC 8-1-2-42.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2008 (RETROACTIVE)]:
Sec. 42.5. (a) As used in this section, "rate adjustment mechanism"
has the meaning set forth in section 42.2 of this chapter.
(b) The commission shall by rule or order, consistent with the
resources of the commission and the office of
the utility consumer
counselor, require that the basic rates and charges of all public,
municipally owned, and cooperatively owned utilities (except those
utilities described in IC 8-1-2-61.5) are be subject to a regularly
scheduled periodic review and revision by the commission. However,
(1) shall conduct the periodic review at least:
(A) once every four (4) years; or
(B) as frequently as may be required under section 42.2 of
this chapter, in response to a request by the office of utility
consumer counselor; and
(2) may not authorize a filing for an increase in basic rates and
charges more frequently than is permitted by operation of section
42(a) of this chapter.
SOURCE: ; (08)IN1181.1.3. -->
SECTION 3. An emergency is declared for this act.