HB 1002

           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 ENROLLED ACT No. 1002
    AN ACT to amend the Indiana Code concerning utilities.
    Be it enacted by the General Assembly of the State of Indiana:
   SECTION 1. IC 4-22-2.3-7, AS ADDED BY P.L.249-2023,
SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7. The Indiana utility regulatory commission
may adopt interim rules under the interim rule procedures in
IC 4-22-2-37.2 pursuant to its authority under IC 8-1-1-3(g). or
IC 8-1-2-113. A rule described in this section expires not later than two
(2) years after the rule is accepted for filing by the publisher of the
Indiana Register and may not be continued in another interim rule.
   SECTION 2. IC 8-1-2-4.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4.7. (a) As used in this section, "levelized
billing plan" means a levelized payment plan, however
denominated, that:
      (1) applies to a customer's account with an electricity
      supplier;
      (2) provides for the payment of a customer's bill in equal
      monthly installments; and
      (3) involves a reconciliation mechanism in which:
         (A) the amount of utility service actually used by the
         customer during a specified period is compared with the
HEA 1002 — Concur
                                  2
         amount of utility service for which the customer was billed
         under the plan during the specified period; and
         (B) the customer's account is either billed or credited, as
         appropriate, for any difference identified under clause (A).
   (b) As used in this section, "customer" refers to a residential
customer who has agreed to pay for utility service from an
electricity supplier under the electricity supplier's standard
residential tariff. The term does not include a residential customer
who has agreed to pay for utility service from an electricity
supplier under an alternative billing tariff approved by the
commission.
   (c) As used in this section, "electricity supplier" means a person,
other than a municipally owned utility (as defined in IC 8-1-2-1(h)),
that:
      (1) provides utility service to customers; and
      (2) is under the jurisdiction of the commission for the
      approval of rates and charges.
   (d) As used in this section, "utility service" means electric
service that is provided at retail to customers.
   (e) An electricity supplier shall do the following:
      (1) Beginning with the first monthly billing cycle that begins
      after June 30, 2026, apply a levelized billing plan to all active
      customer accounts:
         (A) for utility service provided under the electricity
         supplier's standard residential tariff to a customer who is
         part of a household that is eligible for and has applied for
         assistance from a home energy assistance program
         administered under IC 4-4-33; and
         (B) to which a levelized billing plan does not already apply.
      (2) Not later than April 1, 2026, offer each customer of the
      electricity supplier a mechanism, through one (1) or more
      methods described in subsection (f)(4), by which the customer
      may opt out of a levelized billing plan at any time, without
      penalty, before or after the levelized billing plan is applied to
      the customer's account, subject to the reconciliation
      mechanism described in subsection (a)(3).
      (3) Not later than July 1, 2026, for any levelized billing plan
      offered by the electricity supplier and applied to an active
      customer account, regardless of the date the levelized billing
      plan was first offered or applied, amend or design the
      levelized billing plan, as applicable, so that the reconciliation
      mechanism described in subsection (a)(3) is applied at such
HEA 1002 — Concur
                                  3
     times during a calendar year to reflect, to the extent possible,
     typical seasonal patterns of electricity usage by residential
     customers, but not more than two (2) times during a calendar
     year.
   (f) Not later than April 1, 2026, an electricity supplier shall
provide to each customer described in subsection (e)(1) a written
notice that:
     (1) informs the customer that a levelized billing plan will be
     applied to the customer's account beginning with the first
     monthly billing cycle that begins after June 30, 2026, if a
     levelized billing plan does not already apply to the customer's
     account;
     (2) describes, in clear language that is easily understandable
     to a lay person, the reconciliation mechanism described in
     subsection (a)(3), including an explanation of:
        (A) the number of times during a calendar year that the
        reconciliation mechanism will be applied to the customer's
        account, subject to subsection (e)(3);
        (B) for each time during a calendar year that the
        reconciliation mechanism will be applied, the monthly
        billing cycle after which the reconciliation mechanism will
        be applied; and
        (C) the method by which the electricity supplier will:
           (i) compare the amount of utility service actually used by
           the customer with the amount of utility service for which
           the customer was billed under the plan during the billing
           cycles that are being reconciled; and
           (ii) either bill or credit the customer's account, as
           appropriate, for any difference identified under item (i);
     (3) offers the customer a mechanism, through one (1) or more
     methods described in subdivision (4), by which the customer
     may opt out of a levelized billing plan at any time, without
     penalty, before or after the levelized billing plan is applied to
     the customer's account, subject to the reconciliation
     mechanism described in subsection (a)(3); and
     (4) is delivered to the customer by one (1) or more of the
     following methods:
        (A) United States mail.
        (B) Electronic mail.
        (C) A mobile application or another Internet based
        method.
   (g) Not later than April 1, 2026, an electricity supplier shall post
HEA 1002 — Concur
                                  4
on its website the information set forth in subsection (f)(2) and
(f)(3) for each levelized billing plan offered by the electricity
supplier, regardless of the date the levelized billing plan was first
offered.
    (h) Except as provided in subsection (i), an electricity supplier
may not refer to or promote a levelized billing plan required under
this section as a "budget billing plan" in:
       (1) the information required to be posted on the electricity
       supplier's website under subsection (g);
       (2) any customer bill that is issued after June 30, 2026; or
       (3) any customer or external communications made after June
       30, 2026.
    (i) The prohibition set forth in subsection (h) does not apply
with respect to a billing plan that provides for levelized payments
if the plan also allows a customer to:
       (1) pay current or past due amounts for utility service in
       lower amounts, over an extended period of time, or according
       to another schedule agreed upon by the electricity supplier
       and the customer;
       (2) defer the payment of current or past due amounts for
       utility service to some future date; or
       (3) receive a forbearance with respect to the payment of
       certain amounts owed.
    (j) The commission may adopt rules under IC 4-22-2 to
implement this section.
    SECTION 3. IC 8-1-2-42.7, AS ADDED BY P.L.133-2013,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 42.7. (a) Subsections (g) and (j) do not
apply to an electricity supplier (as defined in IC 8-1-46-6) that has
filed a petition with the commission to change the electricity
supplier's basic rates and charges through the submission of a
multi-year rate plan under IC 8-1-46.
    (a) (b) For purposes of this section,"average prime rate" means the
arithmetic mean, to the nearest one-hundredth of one percent (0.01%),
of the prime rate values published in the Federal Reserve Bulletin for
the three (3) months preceding the first month of a calendar quarter.
    (b) (c) For purposes of this section, "case in chief" includes the
following:
       (1) Testimony, exhibits, and supporting work papers.
       (2) Proposed test year and rate base cutoff dates.
       (3) Proposed revenue requirements.
       (4) Jurisdictional operating revenues and expenses, including
HEA 1002 — Concur
                                     5
      taxes and depreciation.
      (5) Balance sheet and income statements.
      (6) Jurisdictional rate base.
      (7) Proposed cost of capital and capital structure.
      (8) Jurisdictional class cost of service study.
      (9) Proposed rate design and pro forma tariff sheets.
    (c) (d) For purposes of this section, "utility" refers to the following:
      (1) A public utility.
      (2) A municipally owned utility.
      (3) A cooperative owned utility.
    (d) (e) In a petition filed with the commission to change basic rates
and charges, a utility may designate a test period for the commission to
use. The utility must include with its petition the utility's complete case
in chief. The commission shall approve a test period that is one (1) of
the following:
      (1) A forward looking test period determined on the basis of
      projected data for the twelve (12) month period beginning not
      later than twenty-four (24) months after the date on which the
      utility petitions the commission for a change in its basic rates and
      charges.
      (2) A historic test period based on a twelve (12) month period that
      ends not more than two hundred seventy (270) days before the
      date on which the utility petitions the commission for a change in
      its basic rates and charges. The commission may adjust a historic
      test period for fixed, known, and measurable changes and
      appropriate normalizations and annualizations.
      (3) A hybrid test period based on at least twelve (12) consecutive
      months of combined historic data and projected data. The
      commission may adjust the historic data as set forth in
      subdivision (2).
    (e) (f) This subsection does not apply to a proceeding in which a
utility is seeking an increase in basic rates and charges and requesting
initial relief under IC 8-1-2.5-5 or IC 8-1-2.5-6. If the commission does
not issue an order on a petition filed by a utility under subsection (d)
(e) within three hundred (300) days after the utility files its case in
chief in support of the proposed increase, the utility may temporarily
implement fifty percent (50%) of the utility's proposed permanent
increase in basic rates and charges, subject to the commission's review
and determination under subsection (f). (g). The utility shall submit the
proposed temporary rates and charges to the commission at least thirty
(30) days before the date on which the utility seeks to implement the
temporary rates and charges. The temporary rates and charges may
HEA 1002 — Concur
                                    6
reflect proposed or existing approved customer class allocations and
rate designs. However, if the utility uses a forward looking test period
described in subsection (d)(1) (e)(1) or a hybrid test period described
in subsection (d)(3), (e)(3), the utility may not:
       (1) implement the temporary increase before the date on which
       the projected data period begins; or
       (2) object during a proceeding before the commission to a
       discovery request for historic data as described in subsection
       (d)(2) (e)(2) solely on the basis that the utility has designated a
       forward looking or hybrid test period.
    (f) (g) The commission shall review the temporary rates and charges
to determine compliance with this section. The temporary rates and
charges take effect on the latest of the following dates unless the
commission determines that the temporary rates and charges are not
properly designed in compliance with this section:
       (1) The date proposed by the utility.
       (2) Three hundred (300) days after the date on which the utility
       files its case in chief.
       (3) The termination of any extension of the three hundred (300)
       day deadline authorized under subsection (g) (h) or (h). (i).
If the commission determines that the temporary rates and charges are
not properly designed in compliance with this section, the utility may
cure the defect and file the corrected temporary rates and charges with
the commission within a reasonable period determined by the
commission.
    (g) (h) If the commission grants a utility an extension of the
procedural schedule, the commission may extend the three hundred
(300) day deadline set forth in subsection (e) (f) by the length of the
extension.
    (h) (i) The commission may suspend the three hundred (300) day
deadline set forth in subsection (e) (f) one (1) time for good cause. The
suspension may not exceed sixty (60) days.
    (i) (j) If a utility implements temporary rates and charges that differ
from the permanent rates and charges approved by the commission in
a final order on the petition filed under subsection (d), (e), the utility
shall perform a reconciliation and implement a refund, in the form of
a credit rider, or a surcharge, as applicable, on customer bills rendered
on or after the date the commission approves the credit or surcharge.
The refund or surcharge shall be credited or added in equal amounts
each month for six (6) months. The amount of the total refund or
surcharge equals the amount by which the temporary rates and charges
differ from the permanent rates and charges, plus, for a refund only,
HEA 1002 — Concur
                                     7
interest at the applicable average prime rate for each calendar quarter
during which the temporary rates and charges were in effect.
    SECTION 4. IC 8-1-2-113, AS AMENDED BY P.L.93-2024,
SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 113. (a) Subject to subsections (b) and (c),
the commission may, when it considers it necessary to prevent injury
to the business or interests of the people of, or any public utility of this
state operating in, Indiana in case the event of any emergency to be
judged by the commission, that results from:
      (1) a national economic depression;
      (2) an act of war; or
      (3) a disaster of unprecedented size and destructiveness
      resulting from manmade or natural causes;
recommend that the governor declare a disaster emergency under
IC 10-14-3-12 or proclaim a state of energy emergency under
IC 10-14-3-13, as applicable, during which the commission may
temporarily alter, amend, or with the consent of the public utility
concerned, suspend any existing rates, service, practices, schedules,
and order or orders relating to or affecting any public utility or part of
any public utility operating in this state. Indiana. The alterations,
amendments, or suspensions of the rates, service, schedules, or
practices made by the commission shall may apply to one (1) or more
of the public utilities operating in this state or to any portion thereof,
Indiana, as directed by the commission, and shall take effect at the
time and remain in force only for the length of time prescribed by the
commission. duration of the disaster emergency or the energy
emergency, as applicable.
    (b) The commission may adopt rules under IC 4-22-2 to carry out
this section.
    (b) The declaration of a disaster emergency by the governor
upon the recommendation of the commission under subsection (a)
is subject to:
      (1) the time limitations set forth in IC 10-14-3-12(b); and
      (2) termination by the general assembly under
      IC 10-14-3-12(c).
    (c) The proclamation of a state of energy emergency by the
governor upon the recommendation of the commission under
subsection (a) is subject to:
      (1) the time limitation set forth in IC 10-14-3-13(c); and
      (2) approval by the general assembly under IC 10-14-3-13(d)
      with respect to a second or subsequent renewal of the
      proclamation.
HEA 1002 — Concur
                                   8
   SECTION 5. IC 8-1-2-121, AS AMENDED BY P.L.181-2006,
SECTION 48, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 121. (a) As used in this section, "electric or
gas utility" includes a municipally owned, privately owned, or
cooperatively owned utility.
   (b) As used in this section, "electric utility" includes a privately
owned or cooperatively owned utility.
   (a) (c) Notwithstanding any other provision of law, but subject to
subsection (i), the following apply with respect to the termination
of residential electric or gas service:
     (1) An electric or gas utility may not terminate residential
     electric or gas service from December 1 through March 15 of
     any year no electric or gas utility, including a municipally owned,
     privately owned, or cooperatively owned utility, shall terminate
     residential electric or gas service for persons customers who are
     eligible for and have applied for assistance from a heating
     assistance program administered under IC 4-4-33.
     (2) Subject to subsection (d), on any day for which a local
     weather forecast office of the National Weather Service has
     forecast, not earlier than forty-eight (48) hours in advance, a
     heat index of at least ninety-five (95) degrees Fahrenheit for
     a county or part of a county within an electric utility's
     assigned service area under IC 8-1-2.3, the electric utility may
     not terminate residential electric service for customers who:
         (A) receive residential electric service from the electric
         utility at a location to which the forecasted heat index
         applies; and
         (B) are eligible for and have applied for assistance under
         a heating assistance program administered under
         IC 4-4-33 during the calendar year in which the forecast is
         made.
For purposes of subdivision (1), the commission shall implement
procedures to ensure that electric or gas utility service is continued
while eligibility for such persons customers is being determined.
   (d) If:
     (1) an electric utility has provided a notice of disconnection to
     a customer described in subsection (c)(2) before the local
     weather forecast office of the National Weather Service
     forecasts a heat index described in subsection (c)(2) for the
     customer's service location; and
     (2) the fourteen (14) day period following the issuance of the
     disconnection notice during which the electric utility is
HEA 1002 — Concur
                                   9
      prohibited from terminating the customer's electric service
      under 170 IAC 4-1-16 would have elapsed on the forecasted
      date for the heat index to reach the level described in
      subsection (c)(2);
the fourteen (14) day period described in subdivision (2) is tolled
until the first day that follows the day with respect to which the
forecast was made and during which the forecasted heat index is
not reached.
   (e) Not later than June 1, 2026, an electric or gas utility shall
post on the electric or gas utility's website a notice that:
      (1) informs customers of the relief available to eligible
      customers under subsection (c); and
      (2) includes:
         (A) a toll free telephone number; or
         (B) a link to a web page;
      that a customer may call or access for information on how to
      apply for assistance from a heating assistance program
      administered under IC 4-4-33.
   (b) (f) Any An electric or gas utility including a municipally owned,
privately owned, or cooperatively owned utility, shall provide any
residential customer whose account is delinquent an opportunity to
enter into a reasonable amortization agreement with such company to
pay the delinquent account. Such an amortization agreement must
provide the customer with adequate opportunity to apply for and
receive the benefits of any available public assistance program. An
amortization agreement is subject to amendment on the customer's
request if there is a change in the customer's financial circumstances.
   (c) (g) The commission may establish a reasonable rate of interest
which a utility may charge on the unpaid balance of a customer's
delinquent bill that may not exceed the rate established by the
commission under section 34.5 of this chapter.
   (d) (h) The commission shall adopt rules under IC 4-22-2 to carry
out the provisions of this section.
   (e) (i) This section does not prohibit an electric or gas utility from
terminating residential utility service upon a request of a customer or
under the following circumstances:
      (1) If a condition dangerous or hazardous to life, physical safety,
      or property exists.
      (2) Upon order by any court, the commission, or other duly
      authorized public authority.
      (3) If fraudulent or unauthorized use of electricity or gas is
      detected and the utility has reasonable grounds to believe the
HEA 1002 — Concur
                                    10
      affected customer is responsible for such use.
      (4) If the utility's regulating or measuring equipment has been
      tampered with and the utility has reasonable grounds to believe
      that the affected customer is responsible for such tampering.
   SECTION 6. IC 8-1-2.6-2, AS AMENDED BY P.L.107-2014,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. (a) This section applies to rules and orders
that:
      (1) concern telecommunications service or providers of
      telecommunications service; and
      (2) may be adopted or issued by the commission under the
      authority of state or federal law.
   (b) Rules and orders described in this section:
      (1) may be adopted or issued only after notice and hearing,
      unless:
          (A) the commission determines acts in accordance with
          IC 8-1-2-113 that an during a disaster emergency exists that
          is declared by the governor and that requires the commission
          or a provider to take immediate action to:
             (i) prevent injury to the business or interests of the citizens
             of Indiana; or
             (ii) maintain a provider's financial integrity and ability to
             provide adequate basic telecommunications service;
          (B) the commission is authorized under IC 8-1-2 to adopt a
          particular rule or issue a particular order without the necessity
          of a hearing; or
          (C) after receiving notice of the commission's proposed action,
          all parties to a proceeding consent to the commission taking
          action without a hearing; and
      (2) must be:
          (A) consistent with this chapter; and
          (B) in the public interest, as determined by the commission
          under subsection (d).
   (c) Rules and orders described in this section must promote one (1)
or more of the following:
      (1) Cost minimization for providers to the extent that a provider's
      quality of service and facilities are not diminished.
      (2) A more accurate evaluation by the commission of a provider's
      physical or financial conditions or needs as well as a less costly
      regulatory procedure for either the provider, the provider's
      customers, or the commission.
      (3) Consumer access to affordable basic telecommunications
HEA 1002 — Concur
                                  11
      service.
      (4) Development of depreciation guidelines and procedures that
      recognize technological obsolescence.
      (5) Increased provider management efficiency beneficial to
      customers.
      (6) Regulation consistent with a competitive environment.
   (d) In determining whether the public interest will be served, as
required under subsection (b), the commission shall consider:
      (1) whether technological change, competitive forces, or
      regulation by other state and federal regulatory bodies render the
      exercise of jurisdiction by the commission unnecessary or
      wasteful;
      (2) whether the exercise of commission jurisdiction produces
      tangible benefits to the customers of providers; and
      (3) whether the exercise of commission jurisdiction inhibits a
      regulated entity from competing with unregulated providers of
      functionally similar telecommunications services or equipment.
   SECTION 7. IC 8-1-6.1 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]:
   Chapter 6.1. Quarterly Residential Customer Reports by
Electricity Suppliers
   Sec. 1. As used in this chapter, "levelized billing plan" has the
meaning set forth in IC 8-1-2-4.7.
   Sec. 2. As used in this chapter, "customer" refers to a
residential customer who has agreed to pay for utility service from
an electricity supplier.
   Sec. 3. As used in this chapter, "electricity supplier" means a
person, other than a municipally owned utility (as defined in
IC 8-1-2-1(h)), that:
      (1) provides utility service to customers in Indiana; and
      (2) is under the jurisdiction of the commission for the
      approval of rates and charges.
   Sec. 4. As used in this chapter, "office" refers to the office of
utility consumer counselor created by IC 8-1-1.1-2.
   Sec. 5. As used in this chapter, "payment plan" means a
payment arrangement that:
      (1) is entered into by an electricity supplier and a customer of
      the electricity supplier; and
      (2) allows the customer to:
         (A) pay current or past due amounts for utility service in
         lower amounts or over an extended period of time, or
HEA 1002 — Concur
                                 12
         according to another agreed upon schedule;
         (B) defer the payment of current or past due amounts for
         utility service to some future date; or
         (C) receive a forbearance with respect to the payment of
         certain amounts owed.
   Sec. 6. As used in this chapter, "protected account" means an
account that is for utility service that is provided to a customer
who is eligible for and has applied for assistance from a home
energy assistance program administered under IC 4-4-33.
   Sec. 7. As used in this chapter, "utility service" means
residential electric service that is provided at retail.
   Sec. 8. (a) An electricity supplier shall submit to the office
quarterly reports containing the information set forth in this
subsection with respect to the calendar quarter covered by the
report. A report under this subsection shall be submitted to the
office in the manner and form prescribed by the office and not
later than thirty (30) days after the last day of the calendar quarter
covered by the report. The first report submitted to the office
under this subsection must cover the third calendar quarter of
2026. A report under this subsection must include the following
information for each month in the calendar quarter covered by the
report, including, to the extent available, a comparison of the same
information for the same month of the immediately preceding
calendar year:
     (1) The total number of open customer accounts.
     (2) The total number of customers who received assistance
     from a home energy assistance program administered under
     IC 4-4-33.
     (3) The total number of open protected accounts for
     customers.
     (4) The total number of open customer accounts that were
     delinquent for more than sixty (60) days.
     (5) The total dollar amount owed with respect to the accounts
     identified under subdivision (4).
     (6) The total number of payment plans entered into between
     the electricity supplier and customers of the electricity
     supplier.
     (7) The total number of levelized billing plans applied to
     customer accounts.
     (8) The total number of customer accounts sent a notice of
     disconnection for nonpayment.
     (9) The total number of utility service disconnections
HEA 1002 — Concur
                                  13
      performed for nonpayment.
      (10) The total dollar value of customer accounts written off as
      uncollectible.
    (b) An electricity supplier shall report all information and data
required under subsection (a) in the aggregate and in a manner
that does not identify individual customers of the electricity
supplier.
    (c) This section does not empower the office to require
electricity suppliers to disclose confidential and proprietary
business information without adequate protection of the
information. The office shall exercise all necessary caution to avoid
disclosure of any confidential information reported by electricity
suppliers under this section.
    Sec. 9. The office shall adopt guidelines to implement this
chapter.
    Sec. 10. Beginning in 2027, the office shall annually compile and
summarize the information received from electricity suppliers
under section 8 of this chapter for the previous calendar year and
include the office's summary of the information in the office's
annual report to the interim study committee on energy, utilities,
and telecommunications.
    SECTION 8. IC 8-1-32.4-15, AS AMENDED BY P.L.8-2012,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 15. (a) The commission may declare act in
accordance with IC 8-1-2-113 that an during a disaster emergency
exists in that is declared by the governor and that includes an area
in Indiana that is not served by any communications service provider
offering voice service through any technology or medium. If the
commission declares an acts in accordance with IC 8-1-2-113 during
a declared disaster emergency, under this section, the commission
may issue any order necessary to protect the health, safety, and welfare
of affected residents or businesses and may expedite the availability of
voice service to the affected residents or businesses.
    (b) If the commission authorizes a communications service provider
to offer voice service under this section, the commission shall permit
the communications service provider to offer the voice service through
any available technology or medium determined by the
communications service provider.
    SECTION 9. IC 8-1-39-9, AS AMENDED BY P.L.89-2019,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9. (a) Subject to subsection (d), a public
utility that provides electric or gas utility service may file with the
HEA 1002 — Concur
                                    14
commission rate schedules establishing a TDSIC that will allow the
periodic automatic adjustment of the public utility's basic rates and
charges to provide for timely recovery of eighty percent (80%) of
approved capital expenditures and TDSIC costs. The petition must:
      (1) use the customer class revenue allocation factor based on firm
      load approved in the public utility's most recent retail base rate
      case order;
      (2) include the public utility's TDSIC plan for eligible
      transmission, distribution, and storage system improvements; and
      (3) identify projected effects of the plan described in subdivision
      (2) on retail rates and charges.
The public utility shall provide a copy of the petition to the office of the
utility consumer counselor when the petition is filed with the
commission.
    (b) The public utility shall update the public utility's TDSIC plan
under subsection (a)(2) at least annually. An update may include a
petition for approval of:
      (1) a targeted economic development project under section 11 of
      this chapter; or
      (2) transmission, distribution, and storage system improvements
      not described in the public utility's TDSIC plan most recently
      approved by the commission under section 10 of this chapter.
    (c) A public utility that recovers capital expenditures and TDSIC
costs under subsection (a) shall defer the remaining twenty percent
(20%) of approved capital expenditures and TDSIC costs, including
depreciation, allowance for funds used during construction, and post in
service carrying costs, and shall recover those capital expenditures and
TDSIC costs as part of the next general rate case that the public utility
files with the commission.
    (d) Except as provided in section 15 of this chapter, a public utility
may not file a petition under subsection (a) within nine (9) months after
the date on which the commission issues an order changing the public
utility's basic rates and charges with respect to the same type of utility
service.
    (e) This subsection does not apply to an electricity supplier (as
defined in IC 8-1-46-6) that:
      (1) is subject to a multi-year rate plan under IC 8-1-46; or
      (2) petitions the commission for approval of a multi-year rate
      plan under IC 8-1-46;
during the term of the electricity supplier's approved TDSIC plan.
A public utility that implements a TDSIC under this chapter shall,
before the expiration of the public utility's approved TDSIC plan,
HEA 1002 — Concur
                                   15
petition the commission for review and approval of the public utility's
basic rates and charges with respect to the same type of utility service.
    (f) A public utility may file a petition under this section not more
than one (1) time every six (6) months.
    (g) Actual capital expenditures and TDSIC costs that exceed the
approved capital expenditures and TDSIC costs require specific
justification by the public utility and specific approval by the
commission before being authorized for recovery in customer rates.
    SECTION 10. IC 8-1-46 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]:
    Chapter 46. Performance Based Ratemaking for Electricity
Suppliers
    Sec. 1. (a) As used in this chapter, "average monthly residential
bill", with respect to an electricity supplier, means the average
total monthly charges billed, over the course of a calendar year, to
all customers receiving retail electric service under the electricity
supplier's standard residential tariff.
    (b) The term includes the following charges:
       (1) Fixed service charges.
       (2) Energy charges based on the amount of electricity
       provided to or consumed by the customer during the billing
       cycle.
       (3) Additional charges or credits, including any applicable
       rate adjustment mechanisms approved by the commission.
       (4) Taxes.
    Sec. 2. As used in this chapter, "commission" refers to the
Indiana utility regulatory commission created by IC 8-1-1-2.
    Sec. 3. (a) As used this chapter, "customer", with respect to an
electricity supplier, means a metered electrical service point:
       (1) that is located at a specific location in Indiana; and
       (2) for which an active billing account is established by the
       electricity supplier.
    (b) As the context requires, the term includes the person of
record who has agreed to pay for the retail electric service
provided by the electricity supplier at the location described in
subsection (a).
    Sec. 4. As used in this chapter, "customer affordability
performance metric", with respect to an electricity supplier, means
a metric that:
       (1) is determined by the commission under section 23 of this
       chapter for a particular rate year included in that electricity
HEA 1002 — Concur
                                 16
     supplier's multi-year rate plan;
     (2) is based on the most recent customer affordability
     performance report submitted to the commission by the
     electricity supplier under section 18 of this chapter; and
     (3) is used by the commission to establish a customer
     affordability PIM that applies to that rate year and provides
     financial rewards or penalties to the electricity supplier based
     on the electricity supplier's measured customer affordability
     performance.
   Sec. 5. As used in this chapter, "customer average interruption
duration index", or "CAIDI", means an index that:
     (1) indicates the average time required to restore electric
     service to an electricity supplier's customers affected by
     sustained service interruptions; and
     (2) is calculated by determining the quotient of:
        (A) the sum of sustained service interruption durations in
        minutes for a specified period; divided by
        (B) the total number of customers affected by the sustained
        service interruptions;
     in accordance with IEEE 1366.
   Sec. 6. (a) As used in this chapter, "electricity supplier" means
a public utility (as defined in IC 8-1-2-1(a)) that:
     (1) furnishes retail electric service to customers in Indiana;
     and
     (2) is under the jurisdiction of the commission for the
     approval of rates and charges.
   (b) The term does not include:
     (1) a municipally owned utility (as defined in IC 8-1-2-1(h));
     (2) a corporation organized under IC 8-1-13; or
     (3) a corporation organized under IC 23-17 that is an electric
     cooperative and that has at least one (1) member that is a
     corporation organized under IC 8-1-13.
   Sec. 7. As used in this chapter, "IEEE 1366" refers to:
     (1) the 2022 edition of IEEE 1366, IEEE Guide for Electric
     Power Distribution Reliability Indices, as adopted by the
     Institute of Electrical and Electronics Engineers; or
     (2) if the commission adopts a rule under IC 4-22-2 to amend:
        (A) the 2022 edition; or
        (B) any subsequent edition;
     of IEEE 1366, the version of IEEE 1366 as amended by the
     commission.
   Sec. 8. As used in this chapter, "major event day", or "MED",
HEA 1002 — Concur
                                  17
means a day with respect to which an electricity supplier's daily
system SAIDI exceeds a statistical threshold value that is:
     (1) calculated using the 2.5 Beta methodology developed by
     the Institute of Electrical and Electronics Engineers; and
     (2) based on the most recent five (5) years of relevant data for
     the electricity supplier;
as defined in IEEE 1366.
   Sec. 9. As used in this chapter, "multi-year rate plan" means a
ratemaking mechanism under which the commission sets an
electricity supplier's base rates for a three (3) year period that
includes:
     (1) authorized periodic changes in the electricity supplier's
     base rates; and
     (2) adjustments to the electricity supplier's base rates based
     on the electricity supplier's performance with respect to each
     performance incentive mechanism applicable to the electricity
     supplier;
during the three (3) year period, without requiring the electricity
supplier to file a new base rate case with respect to the changes and
adjustments.
   Sec. 10. As used in this chapter, "performance based
ratemaking" means an alternative ratemaking approach for
electricity suppliers that includes one (1) or more performance
incentive mechanisms in the context of a multi-year rate plan.
   Sec. 11. As used in this chapter, "performance incentive
mechanism", or "PIM", means a ratemaking mechanism that is
approved by the commission and that:
     (1) links an electricity supplier's earnings to the electricity
     supplier's performance in targeted areas that are consistent
     with the provision of electric utility service with the attributes
     set forth in IC 8-1-2-0.6, including:
         (A) reliability;
         (B) affordability;
         (C) resiliency;
         (D) stability; and
         (E) environmental sustainability;
     as described in IC 8-1-2-0.6; and
     (2) is based on specific performance metrics against which the
     electricity supplier's performance is measured.
   Sec. 12. As used in this chapter, "rate year" refers to a
particular year in a multi-year rate plan with respect to which:
     (1) authorized base rates; and
HEA 1002 — Concur
                                 18
     (2) adjustments to base rates, including adjustments based on
     an electricity supplier's performance in meeting performance
     metrics serving as the basis of all applicable PIMs;
are in effect.
   Sec. 13. As used in this chapter, "service interruption" means
the loss of electric service to one (1) or more customers connected
to the distribution portion of an electricity supplier's system.
   Sec. 14. As used in this chapter, "service restoration
performance metric", with respect to an electricity supplier, means
a metric that:
     (1) is determined by the commission under section 24 of this
     chapter for a particular rate year included in that electricity
     supplier's multi-year rate plan;
     (2) is based on the most recent service restoration
     performance report submitted to the commission by the
     electricity supplier under section 19 of this chapter; and
     (3) is used by the commission to establish a service restoration
     PIM that applies to that rate year and provides financial
     rewards or penalties to the electricity supplier based on the
     electricity supplier's measured service restoration
     performance.
   Sec. 15. (a) As used in this chapter, "sustained service
interruption" means a service interruption that is at least five (5)
minutes in duration.
   (b) The term does not include the following, regardless of
duration:
     (1) A planned service interruption that is:
         (A) initiated by an electricity supplier to perform
         scheduled activities, such as work related to:
            (i) system or facilities maintenance or upgrades;
            (ii) infrastructure improvements; or
            (iii) new construction; and
         (B) communicated to customers in advance.
     (2) A curtailment or interruption of service to a customer
     receiving service under an interruptible service tariff to the
     extent that the curtailment or interruption of service occurs
     in accordance with the customer's service agreement.
   Sec. 16. As used in this chapter, "system average interruption
duration index", or "SAIDI", means an index that:
     (1) indicates the total duration of sustained service
     interruptions for an electricity supplier's average customer
     during a specified period; and
HEA 1002 — Concur
                                19
     (2) is calculated by determining the quotient of:
         (A) the sum of sustained service interruption durations in
         minutes for the specified period; divided by
         (B) the total number of customers;
     in accordance with IEEE 1366.
   Sec. 17. As used in this chapter, "system average interruption
frequency index", or "SAIFI", means an index that:
     (1) indicates the number of sustained service interruptions an
     electricity supplier's average customer experiences over a
     specified period; and
     (2) is calculated by determining the quotient of:
         (A) the total number of customers that experienced
         sustained service interruptions over the specified period;
         divided by
         (B) the total number of customers;
     in accordance with IEEE 1366.
   Sec. 18. Beginning in 2027, before March 1 of each year, an
electricity supplier shall file with the commission, on a form
prescribed by the commission, a customer affordability
performance report that includes the following information:
     (1) The electricity supplier's average monthly residential bill
     for each of the most recently concluded five (5) calendar
     years, normalized for weather if not otherwise normalized for
     weather through a rate adjustment mechanism described in
     section 1(b)(3) of this chapter.
     (2) The average annual percentage change (rounded to the
     nearest one-tenth percent (0.1%)) in the electricity supplier's
     average monthly residential bill over the course of the most
     recently concluded five (5) calendar years, normalized for
     weather if not otherwise normalized for weather through a
     rate adjustment mechanism described in section 1(b)(3) of this
     chapter.
     (3) For each of the most recently concluded five (5) calendar
     years, the annual percentage change in seasonally adjusted
     electricity prices for the United States as measured by the
     Consumer Price Index, as published by the United States
     Bureau of Labor Statistics.
     (4) The average annual percentage change (rounded to the
     nearest one-tenth percent (0.1%)) in seasonally adjusted
     electricity prices for the United States as measured by the
     Consumer Price Index, as published by the United States
     Bureau of Labor Statistics, over the course of the most
HEA 1002 — Concur
                                 20
      recently concluded five (5) calendar years.
    Sec. 19. Beginning in 2027, before March 1 of each year, an
electricity supplier shall file with the commission, on a form
prescribed by the commission, a service restoration performance
report that includes the following information for each of the most
recently concluded six (6) calendar years:
      (1) Each of the following indices, reported to exclude major
      event days, for the electricity supplier's system in Indiana as
      a whole:
         (A) SAIDI.
         (B) SAIFI.
         (C) CAIDI.
      (2) Each of the following indices, reported to include major
      event days, for the electricity supplier's system in Indiana as
      a whole:
         (A) SAIDI.
         (B) SAIFI.
         (C) CAIDI.
      (3) The number of customers used by the utility in calculating
      each index required under subdivisions (1) and (2).
    Sec. 20. (a) Except as otherwise provided in subsections (b) and
(c), and subject to the schedule set forth in this section, an
electricity supplier must petition the commission for approval of
any change in its basic rates and charges through the submission
of a multi-year rate plan in accordance with this chapter. An
electricity supplier shall file its first petition with the commission
for approval of a multi-year rate plan under this chapter according
to the following schedule:
      (1) After November 15, 2026, and before December 15, 2026,
      for the electricity supplier with the greatest number of
      Indiana customers.
      (2) After June 30, 2027, and before August 1, 2027, for an
      electricity supplier with respect to which the commission has
      issued an order that:
         (A) establishes basic rates and charges for the electricity
         supplier as part of a base rate case; and
         (B) is issued after April 30, 2024, and before February 1,
         2025.
      (3) After December 31, 2027, and before February 1, 2028, for
      an electricity supplier with respect to which the commission
      has issued an order that:
         (A) establishes basic rates and charges for the electricity
HEA 1002 — Concur
                                  21
         supplier as part of a base rate case; and
         (B) is issued after February 1, 2025, and before April 1,
         2025.
     (4) After June 30, 2028, and before August 1, 2028, for an
     electricity supplier with respect to which the commission has
     issued an order that:
         (A) establishes basic rates and charges for the electricity
         supplier as part of a base rate case; and
         (B) is issued after June 1, 2025, and before July 1, 2025.
     (5) After December 31, 2028, and before February 1, 2029, for
     an electricity supplier with respect to which the commission
     has issued an order that:
         (A) establishes basic rates and charges for the electricity
         supplier as part of a base rate case that is not part of a
         multi-year rate plan under this chapter; and
         (B) is issued after January 1, 2026.
   (b) An electricity supplier may file its first petition with the
commission for approval of a multi-year rate plan under this
chapter before the beginning of the time frame that would
otherwise apply to the electricity supplier under subsection (a) if
the petition:
     (1) requests approval of a reduction in the electricity
     supplier's overall revenue requirement for the first rate year
     of the multi-year rate plan;
     (2) meets all requirements for a multi-year rate plan under
     this chapter; and
     (3) is filed with the commission not later than September 1,
     2026.
   (c) An electricity supplier may petition the commission for relief
for changes to the electricity supplier's basic rates and charges:
     (1) after March 14, 2026; and
     (2) before the beginning of the electricity supplier's applicable
     time frame for filing the electricity supplier's first petition for
     approval of multi-year rate plan under subsection (a).
However, the filing of a petition for relief under this subsection
does not exempt an electricity supplier from filing its first petition
for a multi-year rate plan under this chapter in accordance with
the schedule set forth in subsection (a).
   (d) An electricity supplier shall file its second petition and all
subsequent petitions with the commission for approval of a
multi-year rate plan under this chapter:
     (1) not earlier than sixty (60) days before; and
HEA 1002 — Concur
                                  22
      (2) not later than thirty (30) days before;
the expiration of its then current multi-year rate plan.
   Sec. 21. (a) The following apply to a multi-year rate plan under
this chapter:
      (1) An electricity supplier's petition for approval of a
      multi-year rate plan under this chapter must include the
      electricity supplier's:
         (A) case in chief (as defined in IC 8-1-2-42.7(c), including
         the electricity supplier's proposed:
            (i) revenue requirement; and
            (ii) base rates for each customer class; and
         (B) proposed test period using forward looking periods the
         close of which correspond with the end of the second and
         third rate years in the electricity supplier's multi-year rate
         plan;
      for each of the rate years in the multi-year rate plan.
      (2) The base rates for the first rate year of an electricity
      supplier's multi-year rate plan shall be established by the
      commission in the same manner that base rates would be
      established in a proceeding for a change in the electricity
      supplier's basic rates and charges that occurs outside of a
      multi-year rate plan, based on an appropriate test year under
      IC 8-1-2-42.7(e) used to determine the electricity supplier's
      actual and pro forma operating revenues, expenses, and
      operating income under current and proposed rates, adjusted
      for changes that are fixed, known, and measurable for
      ratemaking purposes and that occur within a reasonable time
      after the end of the test year.
      (3) The base rates for the second and third rate years of an
      electricity supplier's multi-year rate plan shall be established
      using:
         (A) changes in the electricity supplier's net plant in service
         from the end of the immediately preceding rate year,
         including any difference between:
            (i) actual net plant in service at the end of the rate year;
            and
            (ii) the projected net plant in service used in the
            electricity supplier's test period for that rate year; and
         (B) changes in the net balance of any regulatory asset or
         liability from the end of the immediately preceding rate
         year.
      As used in this subdivision, "net plant in service" refers to
HEA 1002 — Concur
                                 23
     both utility plant in service and accumulated depreciation.
     (4) In establishing an electricity supplier's authorized return
     for the electricity supplier's multi-year rate plan, the
     commission shall consider any increased or decreased risk to:
        (A) the electricity supplier; and
        (B) the electricity supplier's ratepayers;
     that may result from the implementation of the multi-year
     rate plan.
     (5) For each rate year in an electricity supplier's multi-year
     rate plan, the following apply:
        (A) A customer affordability performance metric that:
           (i) is determined by the commission under section 23 of
           this chapter for that rate year;
           (ii) is based on the most recent customer affordability
           performance report submitted to the commission by the
           electricity supplier under section 18 of this chapter; and
           (iii) is used by the commission to establish a customer
           affordability PIM that applies to that rate year.
        (B) A customer affordability PIM that:
           (i) is based on the electricity supplier's performance in
           meeting the customer affordability performance metric
           described in clause (A); and
           (ii) provides financial rewards or penalties to the
           electricity supplier based on that performance in
           accordance with section 23 of this chapter.
        (C) A service performance restoration metric that:
           (i) is determined by the commission under section 24 of
           this chapter for that rate year;
           (ii) is based on the most recent service restoration
           performance report submitted to the commission by the
           electricity supplier under section 19 of this chapter; and
           (iii) is used by the commission to establish a service
           restoration PIM that applies to that rate year.
        (D) A service restoration PIM that:
           (i) is based on the electricity supplier's performance in
           meeting the service restoration performance metric
           described in clause (C); and
           (ii) provides financial rewards or penalties to the
           electricity supplier based on that performance in
           accordance with section 24 of this chapter.
   (b) An electricity supplier's petition for approval of a multi-year
rate plan under this chapter may include alternative regulatory
HEA 1002 — Concur
                                  24
practices, procedures, accounting treatments, and mechanisms that
are consistent with this chapter.
   (c) A multi-year rate plan under this chapter shall be considered
separately by the commission from all:
     (1) rate adjustment mechanisms, including the fuel
     adjustment charge under IC 8-1-2-42; and
     (2) other cost recovery mechanisms;
otherwise allowed by law, unless otherwise incorporated into the
multi-year rate plan. In an electricity supplier's first petition for a
multi-year rate plan under this chapter, the electricity supplier
shall include a plan to incorporate planned capital expenditures,
subject to preapproval by the commission, into the electricity
supplier's subsequent multi-year rate plans under this chapter.
   (d) An electricity supplier may elect to:
     (1) exclude from its proposed multi-year rate plan; and
     (2) defer for consideration by the commission and for future
     recovery;
costs incurred or to be incurred in a regulatory asset, to the extent
those specific costs are incremental and are not otherwise already
included for recovery in the electricity supplier's rates, as
authorized by IC 8-1-2-10.
   Sec. 22. (a) The commission shall approve a multi-year rate plan
for an electricity supplier under this chapter if, after notice and
hearing, the commission finds the following:
     (1) That the electricity supplier's rates under the multi-year
     rate plan are just and reasonable.
     (2) That the multi-year rate plan reasonably assures the
     continuation of safe and reliable electric service for the
     electricity supplier's customers.
     (3) That the multi-year rate plan will not unreasonably
     prejudice any class of the electricity supplier's customers and
     will not result in sudden substantial rate increases to the
     electricity supplier's customers or any class of customers.
     (4) That the multi-year rate plan:
         (A) will result in just and reasonable rates;
         (B) is in the public interest; and
         (C) is consistent with the requirements set forth in this
         chapter and in the rules adopted by the commission under
         section 27 of this chapter.
     (5) That the multi-year rate plan meets any other legal
     requirement.
   (b) At any time before the expiration of an electricity supplier's
HEA 1002 — Concur
                                 25
approved multi-year rate plan under this chapter, the commission
may, with good cause and upon its own motion, or at the request of
the office of utility consumer counselor or the electricity supplier
do any of the following:
      (1) Examine the reasonableness of the electricity supplier's
      rates under the multi-year rate plan.
      (2) Conduct periodic reviews with opportunities for public
      hearings and comments from interested parties.
      (3) Initiate a proceeding to adjust the base rates or PIMs
      under the multi-year rate plan as necessary to ensure that the
      multi-year rate plan continues to satisfy the criteria set forth
      in subsection (a).
   Sec. 23. (a) For each rate year in an electricity supplier's
multi-year rate plan, the commission shall determine a customer
affordability performance metric for that electricity supplier by
calculating the difference between:
      (1) the average annual percentage change (rounded to nearest
      one-tenth percent (0.1%)) in the electricity supplier's average
      monthly residential bill over the course of the most recently
      concluded five (5) calendar years (normalized for weather if
      not otherwise normalized for weather through a rate
      adjustment mechanism described in section 1(b)(3) of this
      chapter); minus
      (2) the average annual percentage change (rounded to nearest
      one-tenth percent (0.1%)) in seasonally adjusted electricity
      prices for the United States as measured by the Consumer
      Price Index, as published by the United States Bureau of
      Labor Statistics, over the course of the most recently
      concluded five (5) calendar years;
as reported in the most recent customer affordability performance
report submitted to the commission by the electricity supplier
under section 18 of this chapter. The difference calculated under
this subsection is the electricity supplier's customer affordability
performance metric for the rate year.
   (b) If the electricity supplier's customer affordability
performance metric under subsection (a) is a positive number that
exceeds two (2) percentage points, the commission shall adjust the
electricity supplier's authorized return for the rate year downward
by not more than one (1) basis point.
   (c) If the electricity supplier's customer affordability
performance metric under subsection (a) is a negative number that
when multiplied by negative one (-1) exceeds two (2) percentage
HEA 1002 — Concur
                                 26
points, the commission shall adjust the electricity supplier's
authorized return for the rate year upward by not more than one
(1) basis point.
    Sec. 24. (a) For each rate year included in an electricity
supplier's multi-year rate plan, the commission shall determine,
using the most recent service restoration performance report
submitted to the commission by the electricity supplier under
section 19 of this chapter, a service restoration performance metric
for that electricity supplier in the following manner:
      STEP ONE: Determine the electricity supplier's average
      SAIDI over the course of the five (5) calendar years
      immediately preceding the most recently concluded calendar
      year, including major event days, for the electricity supplier's
      system in Indiana as a whole.
      STEP TWO: Determine the electricity supplier's SAIDI for
      the most recently concluded calendar year, including major
      event days, for the electricity supplier's system in Indiana as
      a whole.
      STEP THREE: Calculate the difference between the STEP
      ONE result minus the STEP TWO result.
      STEP FOUR: Calculate the quotient of the STEP THREE
      result divided by the STEP ONE result, rounded to the
      nearest one-hundredth (0.01).
      STEP FIVE: Calculate the product of one hundred (100)
      multiplied by the STEP FOUR result. This product is the
      electricity supplier's service restoration performance metric
      for the rate year.
    (b) If the electricity supplier's service restoration performance
metric under subsection (a) is a positive number that exceeds five
(5), the commission shall adjust the electricity supplier's authorized
return for the rate year upward by not more than one-half (0.50)
basis point.
    (c) If the electricity supplier's service restoration performance
metric under subsection (a) is a negative number that when
multiplied by negative one (-1) exceeds five (5), the commission
shall adjust the electricity supplier's authorized return for the rate
year downward by not more than one-half (0.50) basis point.
    Sec. 25. (a) Beginning in 2029, the commission shall include in
the annual report that the commission is required to submit under
IC 8-1-1-14 before October 1 of each year the following
information as of the last day of the most recently concluded state
fiscal year:
HEA 1002 — Concur
                                  27
     (1) For each electricity supplier that is subject to this chapter,
     the date of the electricity supplier's most recently filed
     petition for approval of a multi-year rate plan under this
     chapter.
     (2) For each petition listed under subdivision (1):
        (A) the date of the commission's final order approving the
        multi-year rate plan; or
        (B) if the petition is pending before the commission, the
        procedural status of the petition.
     (3) For each electricity supplier that is subject to this chapter,
     the beginning and end dates of the electricity supplier's
     current multi-year rate plan under this chapter, to the extent
     applicable in a report submitted under this section before
     2030.
     (4) For each electricity supplier that is subject to this chapter,
     the electricity supplier's calculated:
        (A) customer affordability performance metric; and
        (B) service restoration performance metric;
     for the current rate year in the electricity supplier's
     multi-year rate plan under this chapter, to the extent
     applicable in a report submitted under this section before
     2030.
     (5) For each electricity supplier that is subject to this chapter,
     any available data as to the impact on customer rates of the
     electricity supplier's applicable:
        (A) customer affordability performance metric; and
        (B) service restoration performance metric;
     during the most recently concluded rate year under a
     multi-year rate plan of the electricity supplier under this
     chapter.
     (6) Any other quantitative or qualitative information that the
     commission considers relevant for members of:
        (A) the interim study committee on energy, utilities, and
        telecommunications established by IC 2-5-1.3-4(8); and
        (B) the general assembly;
     to consider in evaluating multi-year rate plans under this
     chapter.
   (b) Subject to subsection (c), an electricity supplier shall provide
the commission, at the time and in the manner prescribed by the
commission, any information or related materials required by the
commission to fulfill the commission's reporting obligations under
subsection (a).
HEA 1002 — Concur
                                28
   (c) Upon request by an electricity supplier, the commission shall
determine whether any information or related materials required
by the commission under subsection (b):
     (1) are confidential under IC 5-14-3-4;
     (2) are exempt from public access and disclosure by Indiana
     law; and
     (3) must be treated as confidential and protected from public
     access and disclosure by the commission.
   Sec. 26. After March 14, 2026, any reference in IC 8-1, or in
rules adopted by the commission, to:
     (1) a "base rate case";
     (2) a "general rate case";
     (3) a proceeding for a change or increase in "basic rates and
     charges"; or
     (4) words of similar import;
with respect to an electricity supplier subject to this chapter is
considered a reference to the establishment of the electricity
supplier's basic rates and charges for the first year of the
electricity supplier's multi-year rate plan under this chapter.
   Sec. 27. The commission shall adopt rules under IC 4-22-2 to
implement this chapter.
   SECTION 11. IC 8-1-47 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]:
   Chapter 47. Low Income Customer Assistance Programs for
Electric Utility Service
   Sec. 1. As used in this chapter, "electricity supplier" means a
person, other than a municipally owned utility (as defined in
IC 8-1-2-1(h)), that:
     (1) provides utility service to customers; and
     (2) is under the jurisdiction of the commission for the
     approval of rates and charges.
   Sec. 2. (a) As used in this chapter, "eligible program costs"
means costs that are associated with an electricity supplier's low
income customer assistance program and that:
     (1) have been incurred, or are reasonably estimated to be
     incurred, by the electricity supplier in administering the low
     income customer assistance program, including
     administrative activities involving:
         (A) customer eligibility verification;
         (B) billing services; and
         (C) contribution management; and
HEA 1002 — Concur
                                  29
      (2) have not been and will not be recovered by the electricity
      supplier through contributions of any money, services, or
      property that have been or will be provided at no cost to the
      electricity supplier by or through any:
         (A) governmental agency or program; or
         (B) other third party, including voluntary charitable
         contributions from nonprofit organizations or from
         employees, customers, or shareholders of the electricity
         supplier;
      in support of the program.
   (b) The term does not include lost revenues associated with an
electricity supplier's low income customer assistance program.
   Sec. 3. As used in this chapter, "low income customer" refers to
a residential customer who is part of a household that:
      (1) has agreed to pay for utility service from an electricity
      supplier; and
      (2) is eligible for and has applied for assistance from a home
      energy assistance program administered under IC 4-4-33.
   Sec. 4. As used in this chapter, "utility service" means electric
service that is provided at retail to customers.
   Sec. 5. (a) Not later than July 1, 2026, an electricity supplier
shall offer a low income customer assistance program that provides
financial assistance to low income customers for the payment of
monthly bills for utility service provided by the electricity supplier.
A program that:
      (1) is offered by the electricity supplier before July 1, 2026;
      (2) provides financial assistance to low income customers for
      the payment of monthly bills for utility service provided by
      the electricity supplier;
      (3) remains in effect on July 1, 2026; and
      (4) includes eligibility criteria consistent with section 3(2) of
      this chapter;
qualifies as a low income customer assistance program for
purposes of this section.
   (b) Subject to subsection (c), an electricity supplier may
establish:
      (1) per customer funding limits;
      (2) enrollment limits; or
      (3) other limits, caps, or restrictions;
applicable to the low income customer assistance program based
on funds available for the program from governmental agencies or
programs or from other third parties, including voluntary
HEA 1002 — Concur
                                 30
charitable contributions from nonprofit organizations or from
employees, customers, or shareholders of the electricity supplier.
   (c) If at any time during a calendar year:
     (1) an electricity supplier is no longer able to offer assistance
     to additional eligible customers under the electricity
     supplier's low income customer assistance program as a result
     of any limit, cap, or restriction established under subsection
     (b); and
     (2) the full amount allocated or to be allocated to the program
     under section 6(1) of this chapter has not been allocated to low
     income customers enrolled in the program at the time the
     limit, cap, or restriction is reached;
the portion of the amount allocated or to be allocated to the
program under section 6(1) of this chapter that has not been
allocated to low income customers enrolled in the program at the
time the limit, cap, or restriction is reached shall be segregated
from all other funds of the electricity supplier and held in trust for
allocation to low income customers enrolled in the electricity
supplier's low income customer assistance program in the
following calendar year.
   Sec. 6. Beginning in 2027, not later than March 1 of each year,
an electricity supplier shall fund the electricity supplier's low
income customer assistance program in an amount equal to:
     (1) at least two-tenths percent (0.2%) of the electricity
     supplier's jurisdictional revenues for residential customers;
     plus
     (2) any contributions from:
         (A) governmental agencies or programs; or
         (B) other third parties, including voluntary charitable
         contributions from nonprofit organizations or from
         employees, customers, or shareholders of the electricity
         supplier.
   Sec. 7. (a) In each residential customer bill issued by an
electricity supplier after June 30, 2026, the electricity supplier
must include a notice that:
     (1) informs customers that the electricity supplier offers a low
     income customer assistance program for eligible customers;
     and
     (2) includes:
         (A) a toll free telephone number; or
         (B) a link to a web page;
     that a customer may call or access for information on how to
HEA 1002 — Concur
                                  31
      apply for assistance under the program.
   (b) Not later than July 1, 2026, the electricity supplier shall post
the information described in subsection (a)(1) and (a)(2) on the
electricity supplier's website. If at any time during a calendar year,
the electricity supplier is no longer able to offer assistance to
additional eligible customers under the electricity supplier's low
income customer assistance program as a result of any:
      (1) per customer funding limits;
      (2) enrollment limits; or
      (3) other limits, caps, or restrictions;
established by the electricity supplier under section 5(b) of this
chapter, the electricity supplier shall include on its website a
statement notifying customers of that fact. If the electricity
supplier is subsequently able to enroll new eligible customers in the
program during that calendar year, the electricity supplier shall
remove the previously posted statement from its website and post
a new statement indicating that the program is again accepting
new applications for assistance.
   Sec. 8. If a customer:
      (1) applies for assistance under an electricity supplier's low
      income customer assistance program; and
      (2) qualifies as a low income customer under section 3(2) of
      this chapter;
the electricity supplier shall enroll the customer in the program, to
the extent the electricity supplier is able to do so under any per
customer funding limits, enrollment limits, or other limits, caps, or
restrictions established by the electricity supplier under section
5(b) of this chapter and applicable at the time of the customer's
application.
   Sec. 9. (a) An electricity supplier may, but is not required to,
petition the commission for approval to recover eligible program
costs. An electricity supplier may file a petition with the
commission under this section:
      (1) as part of a base rate case; or
      (2) at any time as part of an independent proceeding in which
      the electricity supplier petitions the commission to recover
      eligible program costs on a timely basis through a periodic
      rate adjustment mechanism.
   (b) A petition under subsection (a)(2) for approval of a rate
schedule that periodically adjusts the electricity supplier's rates
and charges to provide for the timely recovery of eligible program
costs must include the following for a twelve (12) month period set
HEA 1002 — Concur
                                 32
forth in the electricity supplier's petition:
     (1) A description of any money, services, or property that has
     been or will be provided at no cost to the electricity supplier
     by or through any:
        (A) governmental agency or program; or
        (B) other third party, including voluntary charitable
        contributions from nonprofit organizations or from
        employees, customers, or shareholders of the electricity
        supplier;
     in support of the low income customer assistance program,
     including the actual or estimated amount or value of the
     money, services, or property described.
     (2) A statement of any amounts that have been or will be
     allocated or contributed to the electricity supplier's low
     income customer assistance program under section 6 of this
     chapter.
     (3) A breakdown of eligible program costs that have been or
     will be incurred by the electricity supplier, including the:
        (A) amounts; and
        (B) purposes;
     for which they have been or will be incurred.
A rate schedule proposed by an electricity supplier under this
subsection may be based in whole or in part on reasonable cost
forecasts over all or any part of the twelve (12) month period on
which the electricity supplier's petition is based, subject to the
commission's consideration of the electricity supplier's historical
forecasting accuracy. If forecasted data is used, the proposed rate
schedule must provide for a reconciliation mechanism to correct
for any variance between the forecasted eligible program costs and
the actual eligible program costs incurred.
   (c) Subject to subsection (d), if after reviewing an electricity
supplier's petition under subsection (a)(2), the commission
determines that:
     (1) the electricity supplier has incurred or will incur eligible
     program costs that are reasonable in amount;
     (2) notwithstanding section 10 of this chapter, the effect or the
     potential effect, in both the long and short term, of the
     proposed rate schedule on the electric rates of
     nonparticipating customers or other customer classes of the
     electricity supplier will be minimal; and
     (3) approval of the proposed rate schedule is in the public
     interest;
HEA 1002 — Concur
                                33
the commission shall approve the electricity supplier's proposed
rate schedule under subsection (b).
   (d) The commission may not approve a rate schedule under
subsection (b) that would result in an average aggregate increase
in an electricity supplier's total retail revenues of more than two
percent (2%) with respect to the twelve (12) month period on
which the electricity supplier's proposed rate schedule is based. If
an electricity supplier incurs eligible program costs in connection
with the electricity supplier's low income customer assistance
program that exceed the limit set forth in this subsection, the
electricity supplier may seek to recover those eligible program
costs in the electricity supplier's next base rate case.
   Sec. 10. A low income customer assistance program offered
under this chapter that affects rates and charges for service is not
discriminatory for purposes of this chapter or any other law
regulating rates and charges for service.
   Sec. 11. (a) Beginning in 2027, the commission shall include in
the annual report that the commission is required to submit under
IC 8-1-1-14 before October 1 of each year the following
information for each electricity supplier with respect to the most
recently concluded state fiscal year:
     (1) The number of low income customers enrolled in the
     electricity supplier's low income customer assistance program
     at the beginning and end of the state fiscal year.
     (2) The total amount of assistance provided to low income
     customers under the electricity supplier's program.
     (3) The median amount of assistance provided to each
     customer under the electricity supplier's program.
     (4) Subject to subsection (c), an identification of the sources
     and amounts of any money, services, or property contributed
     to the electricity supplier's program by or through:
         (A) governmental agencies or programs; or
         (B) other third parties, including voluntary charitable
         contributions from nonprofit organizations or from
         employees, customers, or shareholders of the electricity
         supplier.
     (5) An identification of the amounts of any:
         (A) per customer funding limits;
         (B) enrollment limits; or
         (C) other limits, caps, or restrictions;
     established by the electricity supplier under section 5(b) of
     this chapter, along with information as to whether and when
HEA 1002 — Concur
                                  34
     any such limits, caps, or restrictions were reached or applied
     during the state fiscal year.
   (b) Subject to subsection (c), an electricity supplier shall provide
the commission, at the time and in the manner prescribed by the
commission, any information required under subsection (a) to be
included in the commission's annual report.
   (c) Upon request by an electricity supplier, the commission shall
determine whether any information and related materials
described in subsection (a):
     (1) are confidential under IC 5-14-3-4;
     (2) are exempt from public access and disclosure by Indiana
     law; and
     (3) must be treated as confidential and protected from public
     access and disclosure by the commission.
In addition, an electricity supplier is not required to name
individual third party donors under subsection (a)(4) and may
instead report the types of third party organizations and
individuals that contributed to the electricity supplier's program
and the amounts contributed by each type.
   Sec. 12. The commission shall adopt rules under IC 4-22-2 to
implement this chapter.
   SECTION 12. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "commission" refers to the Indiana utility regulatory
commission created by IC 8-1-1-2.
   (b) Not later than May 1, 2026, the commission shall amend the
following rules of the commission as necessary to conform the rules
with IC 8-1-2-121, as amended by this act:
     (1) 170 IAC 4.
     (2) Any other rule that:
        (A) has been adopted by the commission; and
        (B) is inconsistent with IC 8-1-2-121, as amended by this
        act.
   (c) This SECTION expires January 1, 2027.
   SECTION 13. [EFFECTIVE UPON PASSAGE] (a) Before
January 1, 2027, the commission shall amend 170 IAC 4-1-23 as
necessary to conform 170 IAC 4-1-23 to the requirements of
IC 8-1-46, as added by this act.
   (b) This SECTION expires January 2, 2027.
   SECTION 14. An emergency is declared for this act.
HEA 1002 — Concur
Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date:  Time:
HEA 1002 — Concur