HB 1276

                                                          Introduced Version
           HOUSE BILL No. 1276
                 _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 8-1-40.3.
Synopsis: Competitive electric generation service. Provides that
beginning: (1) July 1, 2028, for industrial customers; (2) January 1,
2029, for commercial customers; and (3) July 1, 2029, for residential
customers; a customer of an electricity supplier may elect to receive
competitive electric generation service directly from a retail electric
provider. Requires an electricity supplier to do the following not later
than June 30, 2028: (1) Unbundle the cost components of: (A) electric
generation services; and (B) electric transmission and distribution
services; in the electricity supplier's tariffs for all customer classes. (2)
Functionally separate all: (A) electric generation and supply services;
and (B) transmission and distribution services; within the electricity
supplier's operations. (3) Divest the electricity supplier's generation
assets not otherwise needed to provide default electric generation
service to customers within the electricity supplier's service area after
the implementation of competitive electric generation service. Provides
that, except for the licensing requirements for retail electric providers
set forth in the bill, competitive electric generation service is not
subject to regulation by the Indiana utility regulatory commission
(IURC). Provides that the IURC shall continue to regulate: (1) default
electric generation service; and (2) transmission and distribution
service; provided by an electricity supplier to customers within the
electricity supplier's service area. Provides that rates charged by
electricity suppliers for default electric generation service must be: (1)
based on market prices; and (2) subject to annual comparisons to
regional averages for comparable service. Provides that not later than
January 1, 2027, the IURC shall initiate a stakeholder proceeding to
                      (Continued next page)
Effective: July 1, 2026.
                           Ledbetter
January 6, 2026, read first time and referred to Committee on Utilities, Energy and
Telecommunications.
2026  IN 1276—LS 6905/DI 101
Digest Continued
develop a customer education program to ensure that all retail electric
customers have access to accurate information about the availability of,
and options for, competitive electric generation service in advance of
the applicable dates set forth in the bill by which competitive electric
generation service must be available to specified customer classes.
Requires the IURC to establish, not later than March 1, 2028, an online
portal that enables customers to compare competitive electric
generation service offered by retail electric providers. Requires the
IURC to establish by rule requirements for an electricity supplier to
provide to a retail electric provider historical usage data for a customer
that seeks to receive competitive electric generation service from the
retail electric provider. Sets forth: (1) specified billing arrangements
that must be offered to customers receiving competitive electric
generation service; and (2) the dates by which each arrangement must
be made available. Requires the IURC to issue a general administrative
order to ensure that the following are available to customers not later
than December 31, 2029: (1) An expedited process for residential
customers to change retail electric providers. (2) A process that allows:
(A) residential customers; or (B) small commercial or industrial
customers; that move from one service location to another within their
electricity supplier's service area to have their competitive electric
generation service transferred directly to the new location. Requires the
IURC to establish by rule a licensing process for retail electric
providers that seek to provide competitive electric generation service
to customers in Indiana. Sets forth certain requirements that a retail
electric provider must meet as a condition of receiving and maintaining
a license. Authorizes the IURC to initiate an investigation to consider,
and establish guidelines for, the offering by retail electric providers of
additional services or programs in conjunction with the provision of
competitive electric generation service. Beginning in 2029, requires the
IURC to include each year in its annual report specified information
concerning the provision of competitive electric generation service by
retail electric providers. Requires the legislative services agency to
prepare legislation for introduction in the 2028 regular session of the
general assembly to make conforming amendments to: (1) Title 8 of the
Indiana Code; and (2) other provisions outside of Title 8 of the Indiana
Code; as necessary to implement the bill's provisions.
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                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
 Constitution) is being amended, the text of the existing provision will appear in this style type,
 additions will appear in this style type, and deletions will appear in this style type.
   Additions: Whenever a new statutory provision is being enacted (or a new constitutional
 provision adopted), the text of the new provision will appear in this style type. Also, the
 word NEW will appear in that style type in the introductory clause of each SECTION that adds
 a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
 between statutes enacted by the 2025 Regular Session of the General Assembly.
                   HOUSE BILL No. 1276
     A BILL FOR AN ACT to amend the Indiana Code concerning
 utilities.
     Be it enacted by the General Assembly of the State of Indiana:
1    SECTION 1. IC 8-1-40.3 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2026]:
4    Chapter 40.3. Competitive Electric Generation Service
5    Sec. 1. As used in this chapter, "affiliate" means a person that
6 directly, or indirectly through one (1) or more intermediaries,
7 controls, is controlled by, or is under common control with, a
8 specified person. The term includes a parent company or a
9 subsidiary.
10    Sec. 2. As used in this chapter, "commission" refers to the
11 Indiana utility regulatory commission created by IC 8-1-1-2.
12    Sec. 3. (a) As used in this chapter, "competitive electric
13 generation service" means the generation or procurement of
14 electricity for sale to end use customers by a retail electric
15 provider.
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1     (b) The term does not include transmission and distribution
2 service.
3     Sec. 4. As used in this chapter, "default electric generation
4 service" means electric generation service provided by an
5 electricity supplier as a last resort to a customer that:
6(1) receives electric utility service at a location within the
7electricity supplier's assigned service area under IC 8-1-2.3;
8and
9(2) does not receive competitive electric generation service.
10     Sec. 5. As used in this chapter, "electricity supplier" means any
11 of the following that is under the jurisdiction of the commission for
12 the approval of rates and charges and that has an assigned service
13 area under IC 8-1-2.3:
14(1) A public utility (as defined in IC 8-1-2-1(a)).
15(2) A municipally owned utility (as defined in IC 8-1-2-1(h)).
16(3) A corporation organized under IC 8-1-13.
17(4) A corporation organized under IC 23-17 that is an electric
18cooperative and that has at least one (1) member that is a
19corporation organized under IC 8-1-13.
20     Sec. 6. As used in this chapter, "retail electric provider" means
21 a person that is licensed by the commission under this chapter to
22 provide competitive electric generation service.
23     Sec. 7. As used in this chapter, "transmission and distribution
24 service" means the delivery of electricity to a customer's service
25 location by an electricity supplier over the electricity supplier's
26 transmission and distribution systems.
27     Sec. 8. As used in this chapter, "unbundle" means to separate
28 the cost components of:
29(1) electric generation services; and
30(2) electric transmission and distribution services;
31 in an electricity supplier's tariffs.
32     Sec. 9. Not later than June 30, 2028, an electricity supplier shall
33 do the following:
34(1) Unbundle the electricity supplier's tariffs for all customer
35classes.
36(2) Take appropriate internal measures to functionally
37separate all:
38(A) electric generation and supply services; and
39(B) transmission and distribution services;
40within the electricity supplier's operations.
41(3) Divest the electricity supplier's generation assets not
42otherwise needed to provide default electric generation
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1service to customers within the electricity supplier's assigned
2service area under IC 8-1-2.3 after the implementation of
3competitive electric generation service under section 10 of this
4chapter. The electricity supplier may divest such generation
5assets through either or both of the following methods, at the
6discretion of the electricity supplier and subject to the
7approval of the commission:
8(A) Selling one (1) or more generation assets to one (1) or
9more unaffiliated persons at fair market value.
10(B) Transferring one (1) or more generation assets to one
11(1) or more nonutility affiliates at fair market value.
12    Sec. 10. (a) Beginning:
13(1) July 1, 2028, for industrial customers;
14(2) January 1, 2029, for commercial customers; and
15(3) July 1, 2029, for residential customers;
16 a customer of an electricity supplier may elect to receive
17 competitive electric generation service directly from a retail
18 electric provider, as set forth in this chapter and in rules adopted
19 by the commission under section 18 of this chapter.
20    (b) Except for the licensing requirements for retail electric
21 providers established by the commission under section 15 of this
22 chapter, competitive electric generation service is not subject to
23 regulation by the commission. However, the commission shall
24 continue to regulate:
25(1) default electric generation service; and
26(2) transmission and distribution service;
27 provided by an electricity supplier to customers within the
28 electricity supplier's assigned service area under IC 8-1-2.3.
29    (c) Notwithstanding any other law, rates charged by electricity
30 suppliers for default electric generation service must be:
31(1) based on market prices; and
32(2) subject to annual comparisons to regional averages for
33comparable service.
34    Sec. 11. (a) Not later than January 1, 2027, the commission shall
35 initiate a stakeholder proceeding to develop a customer education
36 program to ensure that all retail electric customers of electricity
37 suppliers have access to accurate information about the availability
38 of, and options for, competitive electric generation service in
39 advance of the applicable dates set forth in section 10(a) of this
40 chapter for the specified customer classes. In conducting the
41 proceeding required by this subsection, the commission shall
42 consult with and invite comments from:
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1      (1) electricity suppliers;
2      (2) retail electric providers offering competitive electric
3      generation service in other states;
4      (3) the office of the utility consumer counselor;
5      (4) associations or organizations representing utility
6      ratepayers;
7      (5) regional transmission organizations;
8      (6) utility regulatory commissions in other states that have
9      implemented competitive electric generation service;
10      (7) utility market analysts or other experts; and
11      (8) other interested stakeholders.
12 The proceeding shall explore the information necessary to enable
13 customers to make informed decisions with respect to competitive
14 electric generation service, along with the most effective means of
15 communicating, updating, and making such information easily
16 accessible to customers. In addition, the commission shall consult
17 with participating stakeholders in the development of the online
18 portal required under subsection (b).
19    (b) Not later than March 1, 2028, the commission shall establish
20 an online portal that enables customers of an electricity supplier to
21 compare competitive electric generation service offered by retail
22 electric providers within the electricity supplier's assigned service
23 area under IC 8-1-2.3, including information concerning a retail
24 electric provider's:
25      (1) contract terms;
26      (2) rates, including any time-varying price structures or rates,
27      such as time-of-use or off-peak pricing, critical peak pricing,
28      variable peak pricing, and real-time pricing offered by the
29      retail electric provider; and
30      (3) generation sources used to generate the electricity supplied
31      by the retail electric provider, regardless of whether the
32      electricity is self-generated by the retail electric provider or
33      procured through power purchase agreements.
34    (c) The commission shall update the information on the portal
35 established under subsection (b) as it approves new licenses for
36 retail electric providers under section 15 of this chapter and upon
37 receiving notice under section 15(5) of this chapter from a licensed
38 retail electric provider concerning any of the following:
39      (1) An increase in the rates and charges for, or a change in the
40      terms and conditions of, any competitive electric generation
41      service that the retail electric provider offers in any service
42      area in Indiana.
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1      (2) Any new competitive electric generation service to be
2      offered by the licensed retail electric provider in any service
3      area in Indiana.
4      (3) The cessation of any competitive electric generation
5      service that the retail electric provider offers in any service
6      area in Indiana.
7    Sec. 12. (a) An electricity supplier shall continue to provide
8 metering services for a customer that elects to receive competitive
9 electric generation service from a retail electric provider. The
10 commission shall establish, in rules adopted under section 18 of this
11 chapter, requirements for an electricity supplier to provide to a
12 retail electric provider historical usage data for a customer that
13 seeks to receive competitive electric generation service from the
14 retail electric provider. The commission's rules must provide for
15 the following:
16      (1) Historical usage data for the customer must include:
17(A) at least twenty-four (24) months of customer usage or
18metering data; and
19(B) other customer information necessary to facilitate
20electric generation service transactions, including
21customer class details such as capacity and transmission
22allocations and loss factors.
23      If the customer has received electric generation service from
24      the electricity supplier for less than twenty-four (24) months,
25      the electricity supplier shall provide customer usage or
26      metering data for the length of time the customer has received
27      electric generation service from the electricity supplier.
28      (2) Historical usage data must include both:
29(A) monthly usage totals; and
30(B) hourly interval usage data, to the extent available;
31      delineated in terms of both kilowatt hour energy consumed
32      and kilowatt demand.
33      (3) For the duration of the time that a customer receives
34      competitive electric generation service from a retail electric
35      provider, the electricity supplier shall make available to the
36      retail electric provider such customer usage data as is
37      necessary to facilitate invoicing by the retail electric provider
38      in a timely manner.
39    (b) The requirements established by the commission under
40 subsection (a) must include a process by which a retail electric
41 provider may confirm and document a customer's consent to
42 release to the retail electric provider the customer usage data
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1 described in subsection (a). The requirements must provide that an
2 electronic signature or another similar technology may be used in
3 confirming a customer's consent.
4    Sec. 13. (a) Subject to subsection (b), a customer of an electricity
5 supplier that receives competitive electric generation service from
6 a retail electric provider may elect to be billed through one (1) of
7 the following methods:
8      (1) A consolidated periodic bill that is provided by the
9      electricity supplier and that delineates as separate line items:
10(A) charges for transmission and distribution service
11provided by the electricity supplier; and
12(B) charges for competitive electric generation service
13provided by the retail electric provider.
14      (2) A consolidated periodic bill that is provided by the retail
15      electric provider and that delineates as separate line items:
16(A) charges for competitive electric generation service
17provided by the retail electric provider; and
18(B) charges for transmission and distribution service
19provided by the electricity supplier.
20      (3) A dual billing arrangement in which the customer receives
21      for the applicable billing cycle:
22(A) a bill from the retail electric provider for competitive
23electric generation service provided by the retail electric
24provider; and
25(B) a bill from the electricity supplier for transmission and
26distribution service provided by the electricity supplier.
27 (b) The commission shall issue a general administrative order to
28 establish procedures to be followed by electricity suppliers and
29 retail electric providers so as to ensure that:
30      (1) a dual billing arrangement described in subsection (a)(3)
31      is available to customers not later than June 30, 2028; and
32      (2) the consolidated billing arrangements described in
33      subsection (a)(1) and (a)(2) are available to customers not
34      later than June 30, 2029.
35    Sec. 14. The commission shall issue a general administrative
36 order establishing procedures to ensure that the following
37 processes are implemented and available to customers not later
38 than December 31, 2029:
39      (1) An expedited retail electric provider change process that
40      enables residential customers to switch retail electric
41      providers within three (3) business days of receiving
42      confirmation of approved enrollment from the new retail
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1      electric provider.
2      (2) A process that allows:
3(A) residential customers; or
4(B) small commercial or industrial customers;
5      that move from one (1) service location to another within their
6      electricity supplier's assigned service area under IC 8-1-2.3 to
7      have their competitive electric generation service transferred
8      directly to the new location without being required to switch
9      to default electric generation service provided by the
10      electricity supplier.
11    Sec. 15. The commission shall establish, in rules adopted under
12 section 18 of this chapter, a licensing process for retail electric
13 providers that seek to provide competitive electric generation
14 service to customers of electricity suppliers in Indiana. The
15 commission's rules establishing a licensing process must provide
16 for the following:
17      (1) Before issuing a retail electric provider a license to provide
18      competitive electric generation service, the commission must
19      find that the retail electric provider has the financial,
20      managerial, and technical ability necessary to provide
21      adequate competitive electric generation service to customers
22      of an electricity supplier.
23      (2) As a condition of receiving and maintaining a license, a
24      retail electric provider must do the following:
25(A) Pay to the commission an initial licensing fee of ten
26thousand dollars ($10,000).
27(B) Execute and maintain a surety bond, or an equivalent
28financial security instrument, that is:
29(i) issued by a qualified surety, insurance company, or
30other financial institution authorized to do business in
31Indiana;
32(ii) in the amount of not less than five hundred thousand
33dollars ($500,000); and
34(iii) paid by the retail electric provider.
35The required surety bond or other financial security
36instrument shall be conditioned upon the retail electric
37provider's full and faithful performance of all duties and
38obligations with respect to the provision of competitive
39electric generation service in Indiana. In submitting an
40application for a license to the commission, the retail
41electric provider shall include a copy of the required surety
42bond or other financial security instrument, including a
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1notarized verification from the issuer.
2(C) Provide competitive electric generation service to a
3customer in accordance with a written contract,
4agreement, or arrangement executed by the retail electric
5provider and the customer.
6(D) Pay all applicable state taxes.
7(E) Demonstrate the implementation of cybersecurity
8protocols consistent with industry standards.
9(F) Complete a commission approved training and
10certification program in which a designated representative
11of the retail electric provider must:
12(i) complete an online course concerning the
13commission's rules with respect to the sale and provision
14of competitive electric generation service, including
15applicable consumer protections; and
16(ii) achieve a passing score on an online examination at
17the conclusion of the course.
18A designated representative of the retail electric provider
19must complete the training and certification described in
20this clause as a condition of initial licensure under this
21section and as a condition of maintaining licensure
22according to a schedule prescribed by the commission.
23(3) The commission must issue an order approving or denying
24a retail electric provider's application for a license not later
25than ninety (90) days after the filing date of the application.
26If the commission denies the application, the retail electric
27provider may resubmit the application without prejudice
28after curing any defects in the application identified by the
29commission.
30(4) A license issued under this section must be renewed every
31two (2) years according to a schedule prescribed by the
32commission. The commission may prescribe a license renewal
33fee of not more than ten thousand dollars ($10,000).
34(5) A licensed retail electric provider shall provide advance
35notice to the commission and to the retail electric provider's
36Indiana customers if the retail electric provider will do any of
37the following:
38(A) Increase the rates and charges for, or change the terms
39and conditions of, any competitive electric generation
40service that the retail electric provider offers in any service
41area in Indiana.
42(B) Offer new competitive electric generation service in
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1any service area in Indiana.
2(C) Cease to offer any competitive electric generation
3service that the retail electric provider offers in any service
4area in Indiana.
5The commission shall prescribe the timing and form of the
6notice required under this subdivision. The commission shall
7update the information on the online portal established under
8section 11(b) of this chapter to reflect the changes set forth in
9a notice provided under this subdivision.
10(6) A licensed retail electric provider is subject to an annual
11compliance and financial audit, according to a schedule
12prescribed by the commission, to be performed by one (1) or
13more independent auditors approved by the commission. The
14audit must include an examination of the retail electric
15provider's:
16(A) financial stability;
17(B) compliance history;
18(C) cybersecurity protocols; and
19(D) market practices.
20The cost of the audit shall be paid by the retail electric
21provider.
22(7) Upon the completion of an audit under subdivision (6), the
23commission may do one (1) or more of the following:
24(A) Direct the retail electric provider to take such actions
25as the commission determines necessary to correct or cure
26any acts or practices examined as part of the audit and
27found to be in violation of any provisions of state law or
28the commission's rules and orders.
29(B) Refer any suspected market manipulation,
30anticompetitive or discriminatory practices, or unlawful
31exercise of market power to the attorney general for
32investigation.
33(C) Refer any suspected criminal activities uncovered
34during the audit to an appropriate law enforcement agency
35or prosecutorial agency or official.
36(8) The commission may:
37(A) revoke or suspend a license issued under this section;
38or
39(B) place a licensed retail electric provider on
40probationary status, which may include:
41(i) enhanced oversight;
42(ii) additional reporting requirements; or
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1(iii) submission to the commission of a plan for
2corrective action;
3for cause, including any violation of this chapter or rules
4adopted by the commission under section 18 of this chapter.
5     Sec. 16. The commission may initiate an investigation to
6 consider, and establish guidelines for, the offering by retail electric
7 providers of additional services or programs in conjunction with
8 the provision of competitive electric generation service, such as:
9(1) demand response programs;
10(2) net metering programs;
11(3) community solar programs;
12(4) municipal aggregation programs;
13(5) customer referral incentives; or
14(6) other services, programs, or customer offerings.
15     Sec. 17. Beginning in 2029, the commission shall include in the
16 annual report that the commission is required to submit under
17 IC 8-1-1-14 before October 1 of each year the following
18 information as of the last day of the most recently concluded state
19 fiscal year:
20(1) The total number of licensed retail electric providers
21offering competitive electric generation service in Indiana.
22(2) The total number of licensed retail electric providers
23offering competitive electric generation service in each
24electricity supplier's assigned service area under IC 8-1-2.3.
25(3) For each electricity supplier:
26(A) the total number of customers, broken down by
27customer class, receiving competitive electric generation
28service from a licensed retail electric provider; and
29(B) the total load in megawatt hours associated with those
30customers.
31(4) The total amount of licensing fees collected from licensed
32retail electric providers during the most recently concluded
33state fiscal year.
34(5) Any compliance or enforcement actions that were:
35(A) initiated;
36(B) pending; or
37(C) closed;
38with respect to retail electric providers during the most
39recently concluded state fiscal year, including a description of
40the resolution of any actions that were closed.
41(6) The costs incurred by the commission in administering this
42chapter during the most recently concluded state fiscal year.
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1      (7) An analysis of the state of the retail electric service market
2      in Indiana and regionally.
3      (8) Any other quantitative or qualitative information that the
4      commission considers relevant for members of:
5(A) the interim study committee on energy, utilities, and
6telecommunications established by IC 2-5-1.3-4(8); and
7(B) the general assembly;
8      to consider in evaluating competitive electric generation
9      service under this chapter.
10    Sec. 18. The commission shall adopt rules under IC 4-22-2 to
11 implement this chapter.
12    SECTION 2. [EFFECTIVE JULY 1, 2026] (a) The legislative
13 services agency shall prepare legislation for introduction in the
14 2028 regular session of the general assembly to make conforming
15 amendments to:
16      (1) Title 8 of the Indiana Code; and
17      (2) other provisions outside Title 8 of the Indiana Code;
18 as necessary to implement IC 8-1-40.3, as added by this act.
19    (b) This SECTION expires January 1, 2030.
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