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SB 272

Indiana SenateIntroduced

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.txt
Introduced Version
SENATE BILL No. 272
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 8-1-40.2.
Synopsis: 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
(Continued next page)
Effective: Upon passage.
Donato
January 8, 2026, read first time and referred to Committee on Utilities.
2026 IN 272—LS 7078/DI 101
Digest Continued
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.
2026 IN 272—LS 7078/DI 101
Introduced
Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
SENATE BILL No. 272
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 8-1-40.2 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 40.2. Competitive Electric Supply Service for
Nonresidential Customers
Sec. 1. As used in this chapter, "commission" refers to the
Indiana utility regulatory commission created by IC 8-1-1-2.
Sec. 2. (a) As used in this chapter, "competitive electricity
supplier" means a person that is licensed by the commission under
this chapter to provide competitive electric supply service at retail
to eligible customers.
(b) The term does not include a person that:
(1) owns or operates:
(A) a cogeneration facility (as defined in IC 8-1-2.4-2(c));
(B) a private generation project (as defined in
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2
IC 8-1-2.4-2(g)); or
(C) a generator or other device that is located on the
person's premises;
for the purpose of generating electricity to meet or offset all
or part of the person's need for electricity on or near the
location of the facility, project, generator, or device; and
(2) does not otherwise provide electric supply service at retail.
Sec. 3. (a) As used in this chapter, "customer", with respect to
an incumbent electricity supplier, means a metered electrical
service point that is located in the incumbent electricity supplier's
assigned service area under IC 8-1-2.3.
(b) As the context requires, the term includes a person of record
who is:
(1) associated with a billing account established by the
incumbent electricity supplier for the service point described
in subsection (a); or
(2) otherwise associated with the service point described in
subsection (a).
Sec. 4. (a) As used in this chapter, "electric supply service"
means the generation or procurement of electricity for sale to an
eligible customer by:
(1) a competitive electricity supplier; or
(2) an incumbent electricity supplier under a retail tariff
approved by the commission.
(b) The term does not include transmission and distribution
service.
Sec. 5. As used in this chapter, "eligible customer", with respect
to an incumbent electricity supplier, means a new or existing
nonresidential customer of the incumbent electricity supplier, or
an aggregation of two (2) or more new or existing nonresidential
customers of the incumbent electricity supplier, whose aggregate
electricity demand during the most recently concluded calendar
year exceeded one (1) megawatt.
Sec. 6. As used in this chapter, "incumbent electricity supplier",
with respect to an eligible customer, means any of the following
that is under the jurisdiction of the commission for the approval of
rates and charges and whose assigned service area under
IC 8-1-2.3 includes the eligible customer:
(1) A public utility (as defined in IC 8-1-2-1(a)).
(2) Any of the following that elects to become subject to this
chapter in accordance with the procedure set forth in rules
adopted by the commission under section 18 of this chapter:
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(A) A municipally owned utility (as defined in
IC 8-1-2-1(h)).
(B) A corporation organized under IC 8-1-13.
(C) 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. (a) As used in this chapter, "transmission and
distribution service" means the delivery of electricity to an eligible
customer by an incumbent electricity supplier over the incumbent
electricity supplier's transmission and distribution systems.
(b) The term does not include electric supply service.
Sec. 8. (a) 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;
as set forth in this chapter and in rules adopted by the commission
under section 18 of this chapter.
(b) This chapter does not require a person described in section
2(b) of this chapter to:
(1) discontinue; or
(2) otherwise limit;
the use of a facility, project, generator, or device described in
section 2(b) of this chapter.
(c) An incumbent electricity supplier may not impose:
(1) a transition fee;
(2) an exit fee; or
(3) any similar fee or charge, however denominated;
on an eligible customer that elects to receive electric supply service
from a competitive electricity supplier under this chapter.
Sec. 9. (a) The commission shall, in rules adopted under section
18 of this chapter, establish 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 cap described
in subdivision (1) allows.
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(b) The commission's rules concerning the establishment and
adjustment of the cap described in subsection (a)(1) and the queue
process described in subsection (a)(2) must provide for the
following:
(1) The cap described in subsection (a)(1) must, as of the time
it is established or adjusted:
(A) reflect existing loads served by competitive electricity
suppliers providing electric supply service to an incumbent
electricity supplier's eligible customers;
(B) represent a percentage of the incumbent electricity
supplier's total retail sales, normalized for weather, for the
most recently concluded calendar year; and
(C) account for any incremental demand growth
experienced by the incumbent electricity supplier during
the most recently concluded calendar year.
(2) The commission shall issue a general administrative order
establishing the first cap described in subsection (a)(1) not
later than July 1, 2027. The first cap:
(A) must represent at least twenty percent (20%) of the
incumbent electricity supplier's total retail sales,
normalized for weather, for the most recently concluded
calendar year, excluding sales to eligible customers whose
demand exceeded seventy-five (75) megawatts at one (1)
site; and
(B) remains in effect until the commission issues a
subsequent general administrative order adjusting the cap.
(3) In each subsequent general administrative order that the
commission issues to adjust the cap after the commission's
first general administrative order under subdivision (2), the
percentage described in subdivision (2)(A) may only be
adjusted upward from the percentage in effect at the time of
the adjustment.
(4) If an existing eligible customer of an incumbent electricity
supplier elects to receive electric supply service from a
competitive electricity supplier after the incumbent electricity
supplier's then current cap has been met, the eligible
customer shall be placed in the queue described in subdivision
(6). However, an eligible customer that requires additional
electric supply service for an existing facility owned or
operated by the eligible customer shall be permitted to receive
electric supply service from a competitive electricity supplier
for:
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5
(A) both the current and additional load at the existing
facility; and
(B) new load at any additional facility that is:
(i) constructed or acquired by the eligible customer; and
(ii) similar in nature to the existing facility;
if the customer has an ownership interest of at least fifty
percent (50%) in the new facility;
even though the sale of electric supply service from the
competitive electricity supplier will exceed the incumbent
electricity supplier's then current cap, as long as the load
described in clauses (A) and (B) is considered in the
calculation of subsequent adjustments to the incumbent
electricity supplier's cap.
(5) If a new eligible customer of an incumbent electricity
supplier that has not yet received electric supply service from
the incumbent electricity supplier seeks to receive electric
supply service from a competitive electricity supplier after the
incumbent electricity supplier's then current cap has been
met, the new eligible customer shall be permitted to receive
electric supply service from a competitive electricity supplier,
even though the sale of electric supply service from the
competitive electricity supplier will exceed the incumbent
electricity supplier's then current cap. However, if the new
eligible customer subsequently seeks to discontinue receiving
electric supply service from the competitive electricity
supplier and begin receiving electric supply service from the
incumbent electricity supplier, the new eligible customer must
provide to the incumbent electricity supplier the notice
required under section 10(b) of this chapter. The new eligible
customer must provide the notice within the time prescribed
in section 10(b) of this chapter unless the new eligible
customer elects to receive electric supply service from the
incumbent electricity supplier at the marginal price of
electricity (as defined in IC 8-1-40-6) until the expiration of
applicable notice period, as permitted under section 10(b) of
this chapter. Upon the new eligible customer's establishment
of electric supply service with the incumbent electricity
supplier, the new eligible customer's load shall be considered
in the calculation of subsequent adjustments to the incumbent
electricity supplier's cap.
(6) Subject to subsection (c), on an annual basis, according to
a schedule established by the commission in rules adopted
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under section 18 of this chapter, the commission shall, for
each incumbent electricity supplier, publish on the
commission's website a rank ordered queue of all eligible
customers of the incumbent electricity supplier that are
waiting to receive electric supply service from a competitive
electricity supplier. The published queue must include the
estimated amount of electric supply service that will be
required from a competitive electricity supplier for each
eligible customer listed in the queue.
(7) If an incumbent electricity supplier's existing cap has
remained at capacity for two (2) consecutive years from the
date on which the cap took effect, the commission shall, on its
own motion or upon the request of one (1) or more eligible
customers of the incumbent electricity supplier, conduct a
proceeding to review the incumbent electricity supplier's cap
and may increase the cap if:
(A) one (1) or more eligible customers of the incumbent
electricity supplier are in the queue described in
subdivision (6) as of the expiration of the two (2) year
period described in this subdivision; or
(B) there exists evidence of sustained or accelerated load
growth for the incumbent electricity supplier over the
course of the two (2) year period described in this
subdivision.
If the commission determines that clause (A) or (B) applies,
the commission shall issue a general administrative order
increasing the incumbent electricity supplier's cap. The
commission shall issue a general administrative order under
this subdivision not later than twelve (12) months after the
date on which the commission initiated a proceeding under
this subdivision or the date on which the commission first
received a request to initiate a proceeding under this
subdivision, whichever occurred first.
(8) Every two (2) years after the commission issues a general
administrative order under subdivision (7), the commission
shall conduct a proceeding to review the incumbent electricity
supplier's then current cap and consider whether the cap
should be increased or removed based on:
(A) the total load comprising the incumbent electricity
supplier's queue under subdivision (6);
(B) the projected load growth of the incumbent electricity
supplier; and
2026 IN 272—LS 7078/DI 101
7
(C) other market factors the commission considers
relevant.
(c) Upon request by an incumbent electricity supplier or an
eligible customer of an incumbent electricity supplier, the
commission shall determine whether any information required to
be published on the commission's website under subsection (b)(6):
(1) is confidential under IC 5-14-3-4;
(2) is 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. 10. (a) At any time during which there is available capacity
under an incumbent electricity supplier's cap, an eligible customer
of the incumbent electricity supplier may elect to receive electric
supply service from a competitive electricity supplier by providing
advance written notice to the incumbent electricity supplier at least
thirty (30) days before the date on which the eligible customer
requests termination of electric supply service from the incumbent
electricity supplier.
(b) An eligible customer that has elected to receive electric
supply service from a competitive electricity supplier under
subsection (a) may subsequently discontinue receiving electric
supply service from the competitive electricity supplier and resume
receiving electric supply service from the incumbent electricity
supplier if the incumbent electricity supplier has sufficient
available capacity under its then current cap. An eligible customer
that seeks to resume electric supply service under the incumbent
electricity supplier's applicable tariff must provide to the
incumbent electricity supplier advance written notice of the eligible
customer's requested service date as follows:
(1) If the eligible customer's peak demand did not exceed
twenty-five (25) megawatts during the most recently
concluded calendar year, the eligible customer must provide
notice to the incumbent electricity supplier at least thirty (30)
days before the requested service date.
(2) If the eligible customer's peak demand exceeded
twenty-five (25) megawatts during the most recently
concluded calendar year, the eligible customer must provide
notice to the incumbent electricity supplier at least one
hundred eighty (180) days before the requested service date.
However, an eligible customer that seeks to resume electric supply
service under the incumbent electricity supplier's applicable tariff
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before the expiration of the applicable notice period under this
subsection shall be permitted to receive electric supply service
from the incumbent electricity supplier at the marginal price of
electricity (as defined in IC 8-1-40-6) until the expiration of
applicable notice period.
Sec. 11. (a) 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 for the billing cycle, including a
description of the service or cost associated with each charge or
fee, if not apparent on its face. To the extent applicable, the
following must be delineated as specific line items on each
customer bill:
(1) Distribution and delivery charges.
(2) Transmission charges.
(3) Generation and supply charges, including the cost per unit
consumed.
(4) Individual program charges, separately stated for each
program for which the customer is charged, including energy
efficiency programs, low income assistance programs,
demand response programs, and any other programs outside
the provision of basic service.
(5) Account or program credits.
(6) Taxes.
(7) Account management and billing fees.
(8) Any other applicable charges or fees.
(b) Before July 1, 2027, an incumbent electricity supplier shall:
(1) take appropriate internal operational measures to
separate the incumbent electricity supplier's costs so as to
accurately reflect those costs in associated charges and fees
charged to customers and itemized in customer bills issued
after June 30, 2027, under subsection (a);
(2) amend all existing approved retail tariffs to reflect these
itemized charges and fees and post the tariffs, as amended, on
the incumbent electricity supplier's website; and
(3) file the amended tariffs with the commission.
Upon receiving an incumbent electricity supplier's amended retail
tariffs under subdivision (3), the commission shall post the
amended tariffs on the commission's website. The commission may
not approve any new retail tariff filed with the commission by an
incumbent electricity supplier after June 30, 2027, unless the tariff
includes an itemization of the charges and fees set forth in
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subsection (a).
Sec. 12. (a) An incumbent electricity supplier may not:
(1) impose any charges for electric supply service on an
eligible customer receiving electric supply service from a
competitive electricity supplier; or
(2) allocate to an eligible customer receiving electric supply
service from a competitive electricity supplier costs that are
incurred by the incumbent electricity supplier in providing
electric supply service.
(b) The commission shall establish, in rules adopted under
section 18 of this chapter, 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.
The commission's rules must provide for the following:
(1) Historical usage data for the eligible customer must
include:
(A) at least twenty-four (24) months of customer usage or
metering data; and
(B) other customer information necessary to facilitate
electric supply service transactions, including customer
class details such as capacity and transmission allocations
and loss factors.
If the eligible customer has received electric supply service
from the incumbent electricity supplier for less than
twenty-four (24) months, the incumbent electricity supplier
shall provide customer usage or metering data for the length
of time the eligible customer has received electric supply
service from the incumbent electricity supplier.
(2) Historical usage data must include both:
(A) monthly usage totals; and
(B) interval usage data, to the extent available;
delineated in terms of both kilowatt hour energy consumed
and kilowatt demand.
(3) For the duration of the time that an eligible customer
receives electric supply service from a competitive electricity
supplier, the incumbent electricity supplier shall make
available to the competitive electricity supplier such customer
usage data as is necessary to facilitate invoicing by the
competitive electricity supplier in a timely manner.
(c) The requirements established by the commission under
subsection (b) must include a process by which a competitive
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10
electricity supplier may confirm and document an eligible
customer's consent to release to the competitive electricity supplier
the customer usage data described in subsection (b). The
requirements must provide that an electronic signature or another
similar technology may be used in confirming an eligible
customer's consent.
(d) An eligible customer of an incumbent electricity supplier
that receives electric supply service from a competitive electricity
supplier shall be billed through a dual billing arrangement in
which the eligible customer receives for the applicable billing cycle:
(1) a bill from the competitive electricity supplier for electric
supply service; and
(2) a bill from the incumbent electricity supplier for
transmission and distribution service.
Sec. 13. (a) The commission shall establish, in rules adopted
under section 18 of this chapter, a licensing process for competitive
electricity suppliers that seek to provide electric supply service to
eligible customers of incumbent electricity suppliers in Indiana.
The commission's rules establishing a licensing process must
provide for the following:
(1) Before issuing a competitive electricity supplier a license
to provide electric supply service, the commission must find
that the competitive electricity supplier has the financial,
managerial, and technical ability necessary to provide
adequate electric supply service to eligible customers of an
incumbent electricity supplier.
(2) As a condition of receiving and maintaining a license, a
competitive electricity supplier must do the following:
(A) Pay to the commission an annual licensing fee of ten
thousand dollars ($10,000).
(B) Execute and maintain a surety bond, or an equivalent
financial security instrument, that is:
(i) issued by a qualified surety, insurance company, or
other financial institution authorized to do business in
Indiana;
(ii) in the amount of not less than one million dollars
($1,000,000); and
(iii) paid by the competitive electricity supplier.
In submitting an application for a license to the
commission, the competitive electricity supplier shall
include a copy of the required surety bond or financial
security instrument, including a notarized verification
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11
from the issuer.
(C) Provide electric supply service to an eligible customer
in accordance with a written contract, agreement, or
arrangement executed by the competitive electricity
supplier and the eligible customer.
(D) Pay all applicable state taxes.
(b) The commission must issue an order approving or denying
a competitive electricity supplier's application for a license not
later than ninety (90) days after the filing date of the application.
If the commission denies the application, the competitive electricity
supplier may resubmit the application without prejudice after
curing any defects in the application identified by the commission.
If the commission does not issue an order approving or denying a
competitive electricity supplier's application for a license within
the ninety (90) day period prescribed by this subsection, the
application is considered approved.
(c) The commission may investigate consumer complaints
against a competitive electricity supplier. If, after such
investigation, the commission determines that the competitive
electricity supplier has violated any provision of this chapter or of
any rules adopted by the commission under section 18 this chapter,
the commission may, after giving notice and an opportunity for
hearing to the competitive electricity supplier:
(1) revoke or suspend the competitive electricity supplier's
license under this section; or
(2) place the competitive electricity supplier on probationary
status, which may include:
(A) enhanced oversight;
(B) additional reporting requirements; or
(C) submission to the commission of a plan for corrective
action.
(d) An incumbent electricity supplier that seeks to provide
electric supply service outside its assigned service area under
IC 8-1-2.3 must do so through a functionally separate, nonutility
affiliate that is subject to the licensing requirements set forth in
this section.
(e) Except for the license required under this section to provide
competitive electric supply service to eligible customers of an
incumbent electricity supplier, a competitive electricity supplier is
not required to obtain any other license, certificate, or
authorization from the commission.
Sec. 14. In rules adopted under section 18 of this chapter, the
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commission shall establish a procedure by which any of the
following may elect to become subject to this chapter so as to
enable its customers who meet the criteria set forth in section 5 of
this chapter to receive electric supply service from a competitive
electricity supplier:
(1) A municipally owned utility (as defined in IC 8-1-2-1(h)).
(2) A corporation organized under IC 8-1-13.
(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. 15. In any proceeding for a change in the basic rates and
charges of an incumbent electricity supplier, the commission shall
do the following:
(1) Ensure that the receipt of electric supply service by eligible
customers from a competitive electricity supplier, as
permitted under the incumbent electricity supplier's
applicable cap, will not result in an unreasonable shifting of
costs to other nonparticipating eligible customers or to other
customer classes of the incumbent electricity supplier.
(2) Consider the avoided generation and purchased power
costs inuring to the benefit of the incumbent electricity
supplier's ratepayers as a result of any reduction in the
incumbent electricity supplier's:
(A) electric supply service obligations; or
(B) planning reserve margin requirement with the
appropriate regional transmission organization (as defined
in IC 8-1-8.5-13(b));
as a result of eligible customers receiving electric supply
service from competitive electricity suppliers.
Sec. 16. In any integrated resource plan filed with the
commission under 170 IAC 4-7 after June 30, 2027, an incumbent
electricity supplier shall not incorporate into the incumbent
electricity supplier's forecasts or load projections the loads of
eligible customers receiving electric supply service from a
competitive electricity supplier at the time of filing.
Sec. 17. Beginning in 2028, 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:
(1) The total amount of licensing fees collected from
competitive electricity suppliers during the most recently
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concluded state fiscal year.
(2) The current cap for each incumbent electricity supplier.
(3) For each incumbent electricity supplier:
(A) the total number of eligible customers receiving
electric supply service from a competitive electricity
supplier; and
(B) the total load in megawatt hours associated with those
eligible customers.
(4) Subject to section 9(c) of this chapter, for each incumbent
electricity supplier, the rank ordered queue of eligible
customers of the incumbent electricity supplier that are
waiting to receive electric supply service from a competitive
electricity supplier, as of the last day of the most recently
concluded state fiscal year. The information provided under
this subdivision must include the estimated amount of electric
supply service that will be required from a competitive
electricity supplier for each eligible customer listed in the
queue.
Sec. 18. The commission shall adopt rules under IC 4-22-2 to
implement this chapter.
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.

Utilities
Utilities
Referred to · Jan 8, 2026

History

SB 272 has taken 3 actions since Jan 8, 2026, the latest on Jan 15, 2026.

ChamberAction
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