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SB 272
Indiana Senate•Introduced
Summary
SB 272, “Competitive electric supply service”, was introduced in the Senate on Jan 8, 2026 by Sen. Stacey Donato (R) with 1 co-sponsor. It was referred to Utilities, and last saw action on Jan 15, 2026: Senator Doriot added as second author.
Record
Text
SB 272 has 1 co-sponsor.
sb272/introduced.txtIntroduced VersionSENATE BILL No. 272_____DIGEST OF INTRODUCED BILLCitations Affected: IC 8-1-40.2.Synopsis: Competitive electric supply service. Provides that beginningJuly 1, 2027, an eligible customer of an incumbent electricity suppliermay elect to receive: (1) electric supply service directly from acompetitive electricity supplier; and (2) transmission and distributionservice from the incumbent electricity supplier. Defines for thesepurposes an "eligible customer" as a new or existing nonresidentialcustomer of the incumbent electricity supplier, or an aggregation of twoor more such customers, whose aggregate electricity demand during themost recently concluded calendar year exceeded one megawatt.Defines for these purposes an "incumbent electricity supplier", withrespect to an eligible customer, as an investor owned utility that isunder the jurisdiction of the Indiana utility regulatory commission(IURC) and whose assigned service area includes the eligible customer.Requires the IURC to establish by rule the following: (1) A system forestablishing and periodically adjusting a cap on an incumbentelectricity supplier's eligible customers receiving electric supplyservice from a competitive electricity supplier. (2) A queue process bywhich eligible customers of an incumbent electricity supplier that electto receive electric supply service from a competitive electricity supplierare authorized to begin receiving that service as the incumbentelectricity supplier's cap allows. Specifies the methods by which theIURC must establish and adjust an incumbent electricity supplier's cap.Sets forth requirements for advance notice that an eligible customermust provide to an incumbent electricity supplier before: (1) receivingelectric supply service from a competitive electricity supplier; or (2)resuming electric supply service under the incumbent electricity(Continued next page)Effective: Upon passage.DonatoJanuary 8, 2026, read first time and referred to Committee on Utilities.2026 IN 272—LS 7078/DI 101Digest Continuedsupplier's applicable tariff upon discontinuing electric supply servicefrom a competitive electricity supplier. Provides that on any customerbill issued by an incumbent electricity supplier after June 30, 2027, theincumbent electricity supplier must include a breakdown of the chargesand fees that make up the total amount owed, including a descriptionof the service or cost associated with each charge or fee. Sets forthcertain charges and fees that must be delineated as specific line itemson each customer bill. Requires the IURC to establish by rulerequirements for an incumbent electricity supplier to provide to acompetitive electricity supplier historical usage data for an eligiblecustomer that seeks to receive electric supply service from thecompetitive electricity supplier. Sets forth certain metrics that thecustomer usage data must include. Requires the IURC to establish byrule a licensing process for competitive electricity suppliers that seekto provide electric supply service to eligible customers of incumbentelectricity suppliers in Indiana. Sets forth certain requirements that acompetitive electricity supplier must meet as a condition of receivingand maintaining a license. Provides that an incumbent electricitysupplier that seeks to provide electric supply service outside itsassigned service area must do so through a functionally separate,nonutility affiliate that is subject to the bill's licensing requirements.Requires the IURC to establish by rule a procedure by which a: (1)municipally owned utility; or (2) rural electric corporation; may electto become subject to the bill's provisions so as to enable its eligiblecustomers to receive electric supply service from a competitiveelectricity supplier. Provides that in any base rate case for anincumbent electricity supplier, the IURC shall: (1) ensure that electricsupply service received by eligible customers from a competitiveelectricity supplier will not result in unreasonable cost shifting to othernonparticipating eligible customers or to other customer classes; and(2) consider the avoided generation and purchased power costs inuringto the benefit of the incumbent electricity supplier's ratepayers as aresult of eligible customers receiving electric supply service fromcompetitive electricity suppliers. Beginning in 2028, requires the IURCto include each year in its annual report specified informationconcerning the provision of electric supply service by competitiveelectricity suppliers to eligible customers of incumbent electricitysuppliers. Requires the IURC to adopt rules to implement the bill'sprovisions.2026 IN 272—LS 7078/DI 101IntroducedSecond Regular Session of the 124th General Assembly (2026)PRINTING CODE. Amendments: Whenever an existing statute (or a section of the IndianaConstitution) 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 constitutionalprovision adopted), the text of the new provision will appear in this style type. Also, theword NEW will appear in that style type in the introductory clause of each SECTION that addsa 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 conflictsbetween statutes enacted by the 2025 Regular Session of the General Assembly.SENATE BILL No. 272A BILL FOR AN ACT to amend the Indiana Code concerningutilities.Be it enacted by the General Assembly of the State of Indiana:1 SECTION 1. IC 8-1-40.2 IS ADDED TO THE INDIANA CODE2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE3 UPON PASSAGE]:4 Chapter 40.2. Competitive Electric Supply Service for5 Nonresidential Customers6 Sec. 1. As used in this chapter, "commission" refers to the7 Indiana utility regulatory commission created by IC 8-1-1-2.8 Sec. 2. (a) As used in this chapter, "competitive electricity9 supplier" means a person that is licensed by the commission under10 this chapter to provide competitive electric supply service at retail11 to eligible customers.12 (b) The term does not include a person that:13(1) owns or operates:14(A) a cogeneration facility (as defined in IC 8-1-2.4-2(c));15(B) a private generation project (as defined in2026 IN 272—LS 7078/DI 10121IC 8-1-2.4-2(g)); or2(C) a generator or other device that is located on the3person's premises;4for the purpose of generating electricity to meet or offset all5or part of the person's need for electricity on or near the6location of the facility, project, generator, or device; and7(2) does not otherwise provide electric supply service at retail.8 Sec. 3. (a) As used in this chapter, "customer", with respect to9 an incumbent electricity supplier, means a metered electrical10 service point that is located in the incumbent electricity supplier's11 assigned service area under IC 8-1-2.3.12 (b) As the context requires, the term includes a person of record13 who is:14(1) associated with a billing account established by the15incumbent electricity supplier for the service point described16in subsection (a); or17(2) otherwise associated with the service point described in18subsection (a).19 Sec. 4. (a) As used in this chapter, "electric supply service"20 means the generation or procurement of electricity for sale to an21 eligible customer by:22(1) a competitive electricity supplier; or23(2) an incumbent electricity supplier under a retail tariff24approved by the commission.25 (b) The term does not include transmission and distribution26 service.27 Sec. 5. As used in this chapter, "eligible customer", with respect28 to an incumbent electricity supplier, means a new or existing29 nonresidential customer of the incumbent electricity supplier, or30 an aggregation of two (2) or more new or existing nonresidential31 customers of the incumbent electricity supplier, whose aggregate32 electricity demand during the most recently concluded calendar33 year exceeded one (1) megawatt.34 Sec. 6. As used in this chapter, "incumbent electricity supplier",35 with respect to an eligible customer, means any of the following36 that is under the jurisdiction of the commission for the approval of37 rates and charges and whose assigned service area under38 IC 8-1-2.3 includes the eligible customer:39(1) A public utility (as defined in IC 8-1-2-1(a)).40(2) Any of the following that elects to become subject to this41chapter in accordance with the procedure set forth in rules42adopted by the commission under section 18 of this chapter:2026 IN 272—LS 7078/DI 10131(A) A municipally owned utility (as defined in2IC 8-1-2-1(h)).3(B) A corporation organized under IC 8-1-13.4(C) A corporation organized under IC 23-17 that is an5electric cooperative and that has at least one (1) member6that is a corporation organized under IC 8-1-13.7 Sec. 7. (a) As used in this chapter, "transmission and8 distribution service" means the delivery of electricity to an eligible9 customer by an incumbent electricity supplier over the incumbent10 electricity supplier's transmission and distribution systems.11 (b) The term does not include electric supply service.12 Sec. 8. (a) Beginning July 1, 2027, an eligible customer of an13 incumbent electricity supplier may elect to receive:14 (1) electric supply service directly from a competitive15 electricity supplier; and16 (2) transmission and distribution service from the incumbent17 electricity supplier;18 as set forth in this chapter and in rules adopted by the commission19 under section 18 of this chapter.20 (b) This chapter does not require a person described in section21 2(b) of this chapter to:22 (1) discontinue; or23 (2) otherwise limit;24 the use of a facility, project, generator, or device described in25 section 2(b) of this chapter.26 (c) An incumbent electricity supplier may not impose:27 (1) a transition fee;28 (2) an exit fee; or29 (3) any similar fee or charge, however denominated;30 on an eligible customer that elects to receive electric supply service31 from a competitive electricity supplier under this chapter.32 Sec. 9. (a) The commission shall, in rules adopted under section33 18 of this chapter, establish the following:34 (1) A system for establishing and periodically adjusting a cap35 on an incumbent electricity supplier's eligible customers36 receiving electric supply service from a competitive electricity37 supplier.38 (2) A queue process by which eligible customers of an39 incumbent electricity supplier that elect to receive electric40 supply service from a competitive electricity supplier are41 authorized to begin receiving that service as the cap described42 in subdivision (1) allows.2026 IN 272—LS 7078/DI 10141 (b) The commission's rules concerning the establishment and2 adjustment of the cap described in subsection (a)(1) and the queue3 process described in subsection (a)(2) must provide for the4 following:5 (1) The cap described in subsection (a)(1) must, as of the time6 it is established or adjusted:7(A) reflect existing loads served by competitive electricity8suppliers providing electric supply service to an incumbent9electricity supplier's eligible customers;10(B) represent a percentage of the incumbent electricity11supplier's total retail sales, normalized for weather, for the12most recently concluded calendar year; and13(C) account for any incremental demand growth14experienced by the incumbent electricity supplier during15the most recently concluded calendar year.16 (2) The commission shall issue a general administrative order17 establishing the first cap described in subsection (a)(1) not18 later than July 1, 2027. The first cap:19(A) must represent at least twenty percent (20%) of the20incumbent electricity supplier's total retail sales,21normalized for weather, for the most recently concluded22calendar year, excluding sales to eligible customers whose23demand exceeded seventy-five (75) megawatts at one (1)24site; and25(B) remains in effect until the commission issues a26subsequent general administrative order adjusting the cap.27 (3) In each subsequent general administrative order that the28 commission issues to adjust the cap after the commission's29 first general administrative order under subdivision (2), the30 percentage described in subdivision (2)(A) may only be31 adjusted upward from the percentage in effect at the time of32 the adjustment.33 (4) If an existing eligible customer of an incumbent electricity34 supplier elects to receive electric supply service from a35 competitive electricity supplier after the incumbent electricity36 supplier's then current cap has been met, the eligible37 customer shall be placed in the queue described in subdivision38 (6). However, an eligible customer that requires additional39 electric supply service for an existing facility owned or40 operated by the eligible customer shall be permitted to receive41 electric supply service from a competitive electricity supplier42 for:2026 IN 272—LS 7078/DI 10151(A) both the current and additional load at the existing2facility; and3(B) new load at any additional facility that is:4(i) constructed or acquired by the eligible customer; and5(ii) similar in nature to the existing facility;6if the customer has an ownership interest of at least fifty7percent (50%) in the new facility;8even though the sale of electric supply service from the9competitive electricity supplier will exceed the incumbent10electricity supplier's then current cap, as long as the load11described in clauses (A) and (B) is considered in the12calculation of subsequent adjustments to the incumbent13electricity supplier's cap.14(5) If a new eligible customer of an incumbent electricity15supplier that has not yet received electric supply service from16the incumbent electricity supplier seeks to receive electric17supply service from a competitive electricity supplier after the18incumbent electricity supplier's then current cap has been19met, the new eligible customer shall be permitted to receive20electric supply service from a competitive electricity supplier,21even though the sale of electric supply service from the22competitive electricity supplier will exceed the incumbent23electricity supplier's then current cap. However, if the new24eligible customer subsequently seeks to discontinue receiving25electric supply service from the competitive electricity26supplier and begin receiving electric supply service from the27incumbent electricity supplier, the new eligible customer must28provide to the incumbent electricity supplier the notice29required under section 10(b) of this chapter. The new eligible30customer must provide the notice within the time prescribed31in section 10(b) of this chapter unless the new eligible32customer elects to receive electric supply service from the33incumbent electricity supplier at the marginal price of34electricity (as defined in IC 8-1-40-6) until the expiration of35applicable notice period, as permitted under section 10(b) of36this chapter. Upon the new eligible customer's establishment37of electric supply service with the incumbent electricity38supplier, the new eligible customer's load shall be considered39in the calculation of subsequent adjustments to the incumbent40electricity supplier's cap.41(6) Subject to subsection (c), on an annual basis, according to42a schedule established by the commission in rules adopted2026 IN 272—LS 7078/DI 10161under section 18 of this chapter, the commission shall, for2each incumbent electricity supplier, publish on the3commission's website a rank ordered queue of all eligible4customers of the incumbent electricity supplier that are5waiting to receive electric supply service from a competitive6electricity supplier. The published queue must include the7estimated amount of electric supply service that will be8required from a competitive electricity supplier for each9eligible customer listed in the queue.10(7) If an incumbent electricity supplier's existing cap has11remained at capacity for two (2) consecutive years from the12date on which the cap took effect, the commission shall, on its13own motion or upon the request of one (1) or more eligible14customers of the incumbent electricity supplier, conduct a15proceeding to review the incumbent electricity supplier's cap16and may increase the cap if:17(A) one (1) or more eligible customers of the incumbent18electricity supplier are in the queue described in19subdivision (6) as of the expiration of the two (2) year20period described in this subdivision; or21(B) there exists evidence of sustained or accelerated load22growth for the incumbent electricity supplier over the23course of the two (2) year period described in this24subdivision.25If the commission determines that clause (A) or (B) applies,26the commission shall issue a general administrative order27increasing the incumbent electricity supplier's cap. The28commission shall issue a general administrative order under29this subdivision not later than twelve (12) months after the30date on which the commission initiated a proceeding under31this subdivision or the date on which the commission first32received a request to initiate a proceeding under this33subdivision, whichever occurred first.34(8) Every two (2) years after the commission issues a general35administrative order under subdivision (7), the commission36shall conduct a proceeding to review the incumbent electricity37supplier's then current cap and consider whether the cap38should be increased or removed based on:39(A) the total load comprising the incumbent electricity40supplier's queue under subdivision (6);41(B) the projected load growth of the incumbent electricity42supplier; and2026 IN 272—LS 7078/DI 10171(C) other market factors the commission considers2relevant.3 (c) Upon request by an incumbent electricity supplier or an4 eligible customer of an incumbent electricity supplier, the5 commission shall determine whether any information required to6 be published on the commission's website under subsection (b)(6):7(1) is confidential under IC 5-14-3-4;8(2) is exempt from public access and disclosure by Indiana9law; and10(3) must be treated as confidential and protected from public11access and disclosure by the commission.12 Sec. 10. (a) At any time during which there is available capacity13 under an incumbent electricity supplier's cap, an eligible customer14 of the incumbent electricity supplier may elect to receive electric15 supply service from a competitive electricity supplier by providing16 advance written notice to the incumbent electricity supplier at least17 thirty (30) days before the date on which the eligible customer18 requests termination of electric supply service from the incumbent19 electricity supplier.20 (b) An eligible customer that has elected to receive electric21 supply service from a competitive electricity supplier under22 subsection (a) may subsequently discontinue receiving electric23 supply service from the competitive electricity supplier and resume24 receiving electric supply service from the incumbent electricity25 supplier if the incumbent electricity supplier has sufficient26 available capacity under its then current cap. An eligible customer27 that seeks to resume electric supply service under the incumbent28 electricity supplier's applicable tariff must provide to the29 incumbent electricity supplier advance written notice of the eligible30 customer's requested service date as follows:31(1) If the eligible customer's peak demand did not exceed32twenty-five (25) megawatts during the most recently33concluded calendar year, the eligible customer must provide34notice to the incumbent electricity supplier at least thirty (30)35days before the requested service date.36(2) If the eligible customer's peak demand exceeded37twenty-five (25) megawatts during the most recently38concluded calendar year, the eligible customer must provide39notice to the incumbent electricity supplier at least one40hundred eighty (180) days before the requested service date.41 However, an eligible customer that seeks to resume electric supply42 service under the incumbent electricity supplier's applicable tariff2026 IN 272—LS 7078/DI 10181 before the expiration of the applicable notice period under this2 subsection shall be permitted to receive electric supply service3 from the incumbent electricity supplier at the marginal price of4 electricity (as defined in IC 8-1-40-6) until the expiration of5 applicable notice period.6 Sec. 11. (a) On any customer bill issued by an incumbent7 electricity supplier after June 30, 2027, the incumbent electricity8 supplier must include a breakdown of the charges and fees that9 make up the total amount owed for the billing cycle, including a10 description of the service or cost associated with each charge or11 fee, if not apparent on its face. To the extent applicable, the12 following must be delineated as specific line items on each13 customer bill:14(1) Distribution and delivery charges.15(2) Transmission charges.16(3) Generation and supply charges, including the cost per unit17consumed.18(4) Individual program charges, separately stated for each19program for which the customer is charged, including energy20efficiency programs, low income assistance programs,21demand response programs, and any other programs outside22the provision of basic service.23(5) Account or program credits.24(6) Taxes.25(7) Account management and billing fees.26(8) Any other applicable charges or fees.27 (b) Before July 1, 2027, an incumbent electricity supplier shall:28(1) take appropriate internal operational measures to29separate the incumbent electricity supplier's costs so as to30accurately reflect those costs in associated charges and fees31charged to customers and itemized in customer bills issued32after June 30, 2027, under subsection (a);33(2) amend all existing approved retail tariffs to reflect these34itemized charges and fees and post the tariffs, as amended, on35the incumbent electricity supplier's website; and36(3) file the amended tariffs with the commission.37 Upon receiving an incumbent electricity supplier's amended retail38 tariffs under subdivision (3), the commission shall post the39 amended tariffs on the commission's website. The commission may40 not approve any new retail tariff filed with the commission by an41 incumbent electricity supplier after June 30, 2027, unless the tariff42 includes an itemization of the charges and fees set forth in2026 IN 272—LS 7078/DI 10191 subsection (a).2 Sec. 12. (a) An incumbent electricity supplier may not:3 (1) impose any charges for electric supply service on an4 eligible customer receiving electric supply service from a5 competitive electricity supplier; or6 (2) allocate to an eligible customer receiving electric supply7 service from a competitive electricity supplier costs that are8 incurred by the incumbent electricity supplier in providing9 electric supply service.10 (b) The commission shall establish, in rules adopted under11 section 18 of this chapter, requirements for an incumbent12 electricity supplier to provide to a competitive electricity supplier13 historical usage data for an eligible customer that seeks to receive14 electric supply service from the competitive electricity supplier.15 The commission's rules must provide for the following:16 (1) Historical usage data for the eligible customer must17 include:18(A) at least twenty-four (24) months of customer usage or19metering data; and20(B) other customer information necessary to facilitate21electric supply service transactions, including customer22class details such as capacity and transmission allocations23and loss factors.24 If the eligible customer has received electric supply service25 from the incumbent electricity supplier for less than26 twenty-four (24) months, the incumbent electricity supplier27 shall provide customer usage or metering data for the length28 of time the eligible customer has received electric supply29 service from the incumbent electricity supplier.30 (2) Historical usage data must include both:31(A) monthly usage totals; and32(B) interval usage data, to the extent available;33 delineated in terms of both kilowatt hour energy consumed34 and kilowatt demand.35 (3) For the duration of the time that an eligible customer36 receives electric supply service from a competitive electricity37 supplier, the incumbent electricity supplier shall make38 available to the competitive electricity supplier such customer39 usage data as is necessary to facilitate invoicing by the40 competitive electricity supplier in a timely manner.41 (c) The requirements established by the commission under42 subsection (b) must include a process by which a competitive2026 IN 272—LS 7078/DI 101101 electricity supplier may confirm and document an eligible2 customer's consent to release to the competitive electricity supplier3 the customer usage data described in subsection (b). The4 requirements must provide that an electronic signature or another5 similar technology may be used in confirming an eligible6 customer's consent.7 (d) An eligible customer of an incumbent electricity supplier8 that receives electric supply service from a competitive electricity9 supplier shall be billed through a dual billing arrangement in10 which the eligible customer receives for the applicable billing cycle:11(1) a bill from the competitive electricity supplier for electric12supply service; and13(2) a bill from the incumbent electricity supplier for14transmission and distribution service.15 Sec. 13. (a) The commission shall establish, in rules adopted16 under section 18 of this chapter, a licensing process for competitive17 electricity suppliers that seek to provide electric supply service to18 eligible customers of incumbent electricity suppliers in Indiana.19 The commission's rules establishing a licensing process must20 provide for the following:21(1) Before issuing a competitive electricity supplier a license22to provide electric supply service, the commission must find23that the competitive electricity supplier has the financial,24managerial, and technical ability necessary to provide25adequate electric supply service to eligible customers of an26incumbent electricity supplier.27(2) As a condition of receiving and maintaining a license, a28competitive electricity supplier must do the following:29(A) Pay to the commission an annual licensing fee of ten30thousand dollars ($10,000).31(B) Execute and maintain a surety bond, or an equivalent32financial security instrument, that is:33(i) issued by a qualified surety, insurance company, or34other financial institution authorized to do business in35Indiana;36(ii) in the amount of not less than one million dollars37($1,000,000); and38(iii) paid by the competitive electricity supplier.39In submitting an application for a license to the40commission, the competitive electricity supplier shall41include a copy of the required surety bond or financial42security instrument, including a notarized verification2026 IN 272—LS 7078/DI 101111from the issuer.2(C) Provide electric supply service to an eligible customer3in accordance with a written contract, agreement, or4arrangement executed by the competitive electricity5supplier and the eligible customer.6(D) Pay all applicable state taxes.7 (b) The commission must issue an order approving or denying8 a competitive electricity supplier's application for a license not9 later than ninety (90) days after the filing date of the application.10 If the commission denies the application, the competitive electricity11 supplier may resubmit the application without prejudice after12 curing any defects in the application identified by the commission.13 If the commission does not issue an order approving or denying a14 competitive electricity supplier's application for a license within15 the ninety (90) day period prescribed by this subsection, the16 application is considered approved.17 (c) The commission may investigate consumer complaints18 against a competitive electricity supplier. If, after such19 investigation, the commission determines that the competitive20 electricity supplier has violated any provision of this chapter or of21 any rules adopted by the commission under section 18 this chapter,22 the commission may, after giving notice and an opportunity for23 hearing to the competitive electricity supplier:24(1) revoke or suspend the competitive electricity supplier's25license under this section; or26(2) place the competitive electricity supplier on probationary27status, which may include:28(A) enhanced oversight;29(B) additional reporting requirements; or30(C) submission to the commission of a plan for corrective31action.32 (d) An incumbent electricity supplier that seeks to provide33 electric supply service outside its assigned service area under34 IC 8-1-2.3 must do so through a functionally separate, nonutility35 affiliate that is subject to the licensing requirements set forth in36 this section.37 (e) Except for the license required under this section to provide38 competitive electric supply service to eligible customers of an39 incumbent electricity supplier, a competitive electricity supplier is40 not required to obtain any other license, certificate, or41 authorization from the commission.42 Sec. 14. In rules adopted under section 18 of this chapter, the2026 IN 272—LS 7078/DI 101121 commission shall establish a procedure by which any of the2 following may elect to become subject to this chapter so as to3 enable its customers who meet the criteria set forth in section 5 of4 this chapter to receive electric supply service from a competitive5 electricity supplier:6(1) A municipally owned utility (as defined in IC 8-1-2-1(h)).7(2) A corporation organized under IC 8-1-13.8(3) A corporation organized under IC 23-17 that is an electric9cooperative and that has at least one (1) member that is a10corporation organized under IC 8-1-13.11 Sec. 15. In any proceeding for a change in the basic rates and12 charges of an incumbent electricity supplier, the commission shall13 do the following:14(1) Ensure that the receipt of electric supply service by eligible15customers from a competitive electricity supplier, as16permitted under the incumbent electricity supplier's17applicable cap, will not result in an unreasonable shifting of18costs to other nonparticipating eligible customers or to other19customer classes of the incumbent electricity supplier.20(2) Consider the avoided generation and purchased power21costs inuring to the benefit of the incumbent electricity22supplier's ratepayers as a result of any reduction in the23incumbent electricity supplier's:24(A) electric supply service obligations; or25(B) planning reserve margin requirement with the26appropriate regional transmission organization (as defined27in IC 8-1-8.5-13(b));28as a result of eligible customers receiving electric supply29service from competitive electricity suppliers.30 Sec. 16. In any integrated resource plan filed with the31 commission under 170 IAC 4-7 after June 30, 2027, an incumbent32 electricity supplier shall not incorporate into the incumbent33 electricity supplier's forecasts or load projections the loads of34 eligible customers receiving electric supply service from a35 competitive electricity supplier at the time of filing.36 Sec. 17. Beginning in 2028, the commission shall include in the37 annual report that the commission is required to submit under38 IC 8-1-1-14 before October 1 of each year the following39 information as of the last day of the most recently concluded state40 fiscal year:41(1) The total amount of licensing fees collected from42competitive electricity suppliers during the most recently2026 IN 272—LS 7078/DI 101131 concluded state fiscal year.2 (2) The current cap for each incumbent electricity supplier.3 (3) For each incumbent electricity supplier:4(A) the total number of eligible customers receiving5electric supply service from a competitive electricity6supplier; and7(B) the total load in megawatt hours associated with those8eligible customers.9 (4) Subject to section 9(c) of this chapter, for each incumbent10 electricity supplier, the rank ordered queue of eligible11 customers of the incumbent electricity supplier that are12 waiting to receive electric supply service from a competitive13 electricity supplier, as of the last day of the most recently14 concluded state fiscal year. The information provided under15 this subdivision must include the estimated amount of electric16 supply service that will be required from a competitive17 electricity supplier for each eligible customer listed in the18 queue.19 Sec. 18. The commission shall adopt rules under IC 4-22-2 to20 implement this chapter.21 SECTION 2. An emergency is declared for this act.2026 IN 272—LS 7078/DI 101
Competitive electric supply service. Provides that beginning July 1, 2027, an eligible customer of an incumbent electricity supplier may elect to receive: (1) electric supply service directly from a competitive electricity supplier; and (2) transmission and distribution service from the incumbent electricity supplier. Defines for these purposes an "eligible customer" as a new or existing nonresidential customer of the incumbent electricity supplier, or an aggregation of two or more such customers, whose aggregate electricity demand during the most recently concluded calendar year exceeded one megawatt. Defines for these purposes an "incumbent electricity supplier", with respect to an eligible customer, as an investor owned utility that is under the jurisdiction of the Indiana utility regulatory commission (IURC) and whose assigned service area includes the eligible customer. Requires the IURC to establish by rule the following: (1) A system for establishing and periodically adjusting a cap on an incumbent electricity supplier's eligible customers receiving electric supply service from a competitive electricity supplier. (2) A queue process by which eligible customers of an incumbent electricity supplier that elect to receive electric supply service from a competitive electricity supplier are authorized to begin receiving that service as the incumbent electricity supplier's cap allows. Specifies the methods by which the IURC must establish and adjust an incumbent electricity supplier's cap. Sets forth requirements for advance notice that an eligible customer must provide to an incumbent electricity supplier before: (1) receiving electric supply service from a competitive electricity supplier; or (2) resuming electric supply service under the incumbent electricity supplier's applicable tariff upon discontinuing electric supply service from a competitive electricity supplier. Provides that on any customer bill issued by an incumbent electricity supplier after June 30, 2027, the incumbent electricity supplier must include a breakdown of the charges and fees that make up the total amount owed, including a description of the service or cost associated with each charge or fee. Sets forth certain charges and fees that must be delineated as specific line items on each customer bill. Requires the IURC to establish by rule requirements for an incumbent electricity supplier to provide to a competitive electricity supplier historical usage data for an eligible customer that seeks to receive electric supply service from the competitive electricity supplier. Sets forth certain metrics that the customer usage data must include. Requires the IURC to establish by rule a licensing process for competitive electricity suppliers that seek to provide electric supply service to eligible customers of incumbent electricity suppliers in Indiana. Sets forth certain requirements that a competitive electricity supplier must meet as a condition of receiving and maintaining a license. Provides that an incumbent electricity supplier that seeks to provide electric supply service outside its assigned service area must do so through a functionally separate, nonutility affiliate that is subject to the bill's licensing requirements. Requires the IURC to establish by rule a procedure by which a: (1) municipally owned utility; or (2) rural electric corporation; may elect to become subject to the bill's provisions so as to enable its eligible customers to receive electric supply service from a competitive electricity supplier. Provides that in any base rate case for an incumbent electricity supplier, the IURC shall: (1) ensure that electric supply service received by eligible customers from a competitive electricity supplier will not result in unreasonable cost shifting to other nonparticipating eligible customers or to other customer classes; and (2) consider the avoided generation and purchased power costs inuring to the benefit of the incumbent electricity supplier's ratepayers as a result of eligible customers receiving electric supply service from competitive electricity suppliers. Beginning in 2028, requires the IURC to include each year in its annual report specified information concerning the provision of electric supply service by competitive electricity suppliers to eligible customers of incumbent electricity suppliers. Requires the IURC to adopt rules to implement the bill's provisions.
Sponsors
Sen. Stacey Donato (R) sponsors SB 272, and 1 member has co-sponsored it.
Committees
SB 272 went before 1 committee: Utilities.
History
SB 272 has taken 3 actions since Jan 8, 2026, the latest on Jan 15, 2026.
| Chamber | Action | |||
|---|---|---|---|---|
Jan 15, 2026 | Senate | Senator Doriot added as second author | ||
Jan 8, 2026 | Senate | Authored by Senator Donato | ||
Jan 8, 2026 | Senate | First reading: referred to Committee on Utilities |
Votes
SB 272 has not gone to a roll call.
Source: iga.in.gov · legiscan.com