Bill Text: IN HB1125 | 2012 | Regular Session | Introduced
Bill Title: Clean energy resources.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-09 - First reading: referred to Committee on Utilities and Energy [HB1125 Detail]
Download: Indiana-2012-HB1125-Introduced.html
Citations Affected: IC 8-1-37.
Synopsis: Clean energy resources. Amends the statute concerning the
voluntary clean energy portfolio standard program for electricity
suppliers to include more clean energy resources within the existing list
of clean energy resources that may not be used to satisfy more than
30% of any of the clean portfolio standard goals set forth in the statute.
Makes conforming amendments.
Effective: Upon passage.
January 6, 2012, read first time and referred to Committee on Utilities and Energy.
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
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
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities.
(b) The rules adopted by the commission under this section to establish the program must:
(1) incorporate:
(A) the CPS goals set forth in section 12(a) of this chapter;
(B) methods for measuring and evaluating a participating electricity supplier's compliance with the CPS goals set forth in section 12(a) of this chapter;
(C) the financial incentives and periodic rate adjustment
mechanisms set forth in section 13 of this chapter; and
(D) the reporting requirements set forth in section 14 of this
chapter;
(2) require the commission to determine, before approving an
application under section 11 of this chapter, that the approval of
the application will not result in an increase to the retail rates and
charges of the electricity supplier above what could reasonably be
expected if the application were not approved;
(3) take effect not later than January 1, 2012; and
(4) be consistent with this chapter.
(c) Upon the effective date of the rules adopted by the commission
under this section, an electricity supplier may apply to the commission
under section 11 of this chapter for approval to participate in the
program.
(d) The commission may adopt emergency rules under
IC 4-22-2-37.1 to:
(1) adopt the rules required by this section; or
(2) amend rules previously adopted under this section as
necessary to implement any subsequent amendments to this
chapter enacted by the general assembly to:
(A) change those sources, clean sources, alternative
technologies, or programs that qualify as clean energy
resources under this chapter;
(B) change any restrictions or limitations with respect to
the particular clean energy resources that may be used to
satisfy any of the clean portfolio standard goals set forth in
this chapter; or
(C) otherwise amend the program requirements set forth
in this chapter.
An emergency rule adopted by the commission under IC 4-22-2-37.1
expires on the date a rule that supersedes the emergency rule is adopted
by the commission under IC 4-22-2-24 through IC 4-22-2-36.
(1) CPS Goal Period I: For the six (6) calendar years beginning January 1, 2013, and ending December 31, 2018, an average of at least four percent (4%) of the total electricity obtained by the
participating electricity supplier to meet the energy requirements
of its Indiana retail electric customers during the base year.
(2) CPS Goal Period II: For the six (6) calendar years beginning
January 1, 2019, and ending December 31, 2024, an average of at
least seven percent (7%) of the total electricity obtained by the
participating electricity supplier to meet the energy requirements
of its Indiana retail electric customers during the base year.
(3) CPS Goal Period III: In the calendar year ending December
31, 2025, at least ten percent (10%) of the total electricity
obtained by the participating electricity supplier to meet the
energy requirements of its Indiana retail electric customers during
the base year.
(b) For purposes of subsection (a), electricity is measured in
megawatt hours. However, in determining whether a participating
electricity supplier has met a CPS goal set forth in subsection (a), the
commission shall require that at least fifty percent (50%) of the
megawatt hours of clean energy obtained by the participating electricity
supplier to meet the energy requirements of its Indiana retail electric
customers during the CPS goal period under consideration must
originate from clean energy resources located in Indiana.
(c) In determining whether a participating electricity supplier has
met a particular CPS goal set forth in subsection (a), the commission
shall consider only clean energy that:
(1) except as provided in subsection (f), is obtained by the
participating electricity supplier to meet the energy requirements
of the participating electricity supplier's Indiana retail electric
customers during the CPS goal period under consideration; and
(2) is generated by a facility located in a control area that is part
of a regional transmission organization of which an electricity
supplier is a member.
(d) An electricity supplier is not required to obtain clean energy to
meet a particular CPS goal if the commission determines that the cost
of clean energy resources available to the electricity supplier would
result in an increase in the rates and charges of the electricity supplier
that would not be just and reasonable.
(e) A participating electricity supplier may own or purchase one (1)
or more CECs to meet any of the CPS goals set forth in subsection (a)
as long as the clean energy represented by the CEC meets the condition
set forth in subsection (c)(2).
(f) A participating electricity supplier may apply:
(1) amounts of clean energy supplied by the participating
electricity supplier to its Indiana retail electric customers during
a particular CPS goal period; or
(2) CECs acquired by the participating electricity supplier during
a particular CPS goal period;
that exceed the requirements for the particular CPS goal period to the
immediately succeeding CPS goal period.
(g) A participating electricity supplier may not use a any of the
following clean energy resource described in section 4(a)(17) through
4(a)(21) of this chapter resources, alone or in combination with one
(1) or more of the other following clean energy resources, to satisfy
not more than thirty percent (30%) of any of the CPS goals set forth in
subsection (a):
(1) Fuel cells.
(2) Hydrogen.
(3) Energy from waste to energy facilities, including energy
derived from advanced solid waste conversion technologies.
(4) Coal bed methane.
(5) Industrial byproduct technologies that use fuel or energy
that is a byproduct of an industrial process.
(6) Waste heat recovery from capturing and reusing the waste
heat in industrial processes for heating or for generating
mechanical or electrical work.
(7) Demand side management or energy efficiency initiatives
that:
(A) reduce electricity consumption; or
(B) implement load management, demand response, or
energy efficiency measures designed to shift customers'
electric loads from periods of higher demand to periods of
lower demand;
as a result of equipment installed, or customers enrolled, after
January 1, 2010.
(8) A clean energy project described in IC 8-1-8.8-2(1).
(9) Nuclear energy.
(10) Electricity that is:
(A) generated by a customer owned distributed generation
facility that is interconnected to the electricity supplier's
distribution system in accordance with the commission's
interconnection standards set forth in 170 IAC 4-4.3; and
(B) supplied back to the electricity supplier for use in
meeting the electricity supplier's electricity demand
requirements in accordance with the commission's net
metering rules set forth in 170 IAC 4-4.2.
(11) Combined heat and power systems.
(12) Electricity that is generated from natural gas at a facility
constructed in Indiana after July 1, 2011, which displaces
electricity generation from an existing coal fired generation
facility.
(1) be different for each of the CPS goal periods identified in section 12(a) of this chapter, as the commission determines is appropriate; and
(2) in the case of a particular participating electricity supplier, be based on the extent to which the participating electricity supplier met a particular CPS goal using clean energy resources other than those listed in section
The additional basis points authorized by the commission under this subsection for each CPS goal period are not cumulative and may not be authorized for a clean energy resource for which the commission has authorized an incentive under IC 8-1-8.8-11(a)(2). In determining a participating electricity supplier's authorized rate of return to which additional basis points may be added upon the participating electricity supplier's achievement of a particular CPS goal, the commission shall not include as part of the authorized rate of return any additional basis points awarded to the participating electricity supplier for having achieved the immediately preceding CPS goal.
(b) If the commission approves an electricity supplier's application under section 11(c) of this chapter, the commission shall authorize the incentive described in subsection (a) and the recovery of costs, by means of a periodic rate adjustment mechanism, as described in subsection (c), based on the following considerations:
(1) The sharing of achieved savings or as a percentage of costs.
(2) Avoided costs resulting from achieving demand side management or energy efficiency targets.
(3) The recovery of lost revenues associated with implementation of demand side management or energy efficiency initiatives.
(4) The designation of electricity produced or conserved by a
clean energy resource as an energy savings for purposes of any
initiative, rule, or order approved by the commission to promote
the efficient use and production of electricity, including initiatives
to implement demand side management, energy efficiency, or
conservation measures in accordance with commission rules.
(c) If the commission approved an electricity supplier's application
under section 11(c) of this chapter, the commission shall permit the
recovery, by means of a periodic rate adjustment mechanism, of all
just, reasonable, and necessary program costs incurred by a
participating electricity supplier in:
(1) constructing, operating, or maintaining facilities that generate
clean energy that:
(A) is used by the participating electricity supplier in its efforts
to meet a CPS goal set forth in section 12(a) of this chapter;
and
(B) meets the requirements set forth in section 12(c) of this
chapter; or
(2) otherwise generating or purchasing clean energy that is used
by the participating electricity supplier in its efforts to meet a CPS
goal set forth in section 12(a) of this chapter.
For purposes of this subsection and subsection (h)(1), "program costs"
includes administrative costs, ancillary costs, capacity costs, costs
associated with CECs, capital costs, depreciation costs, tax costs, and
financing costs incurred in connection with an activity described in
subdivision (1) or (2).
(d) A participating electricity supplier that seeks an incentive
established by the commission under subsection (a) or a periodic rate
adjustment mechanism established by the commission under subsection
(c) must apply to the commission:
(1) in the manner and on a form prescribed by the commission;
and
(2) not later than any dates specified by the commission in rules
adopted under section 10 of this chapter;
for approval for the incentive or periodic rate adjustment mechanism
sought.
(e) The commission shall review an application filed under this
section for completeness. The commission may request additional
information the commission considers necessary to aid in the
commission's review.
(f) The commission shall, after notice and hearing, issue a
determination of a participating electricity supplier's eligibility for the
financial incentive or periodic rate adjustment mechanism sought. The
commission shall issue a determination under this subsection not later
than one hundred twenty (120) days after the date of the application,
unless the commission finds that the applicant has not cooperated fully
in the proceeding.
(g) Subject to the participating electricity supplier's continuing
compliance with the applicable CPS goal, as determined according to
the measurement and evaluation procedures described in section
10(b)(1)(B) of this chapter, a shareholder incentive described in
subsection (a) continues in effect until the earlier of the following:
(1) A time or upon an event specified in the commission's order
approving the shareholder incentive.
(2) The commission issues a new order authorizing the
participating electricity supplier to receive a shareholder incentive
for meeting the next CPS program goal.
(h) Subject to the participating electricity supplier's continuing
compliance with the applicable CPS goal, as determined according to
the measurement and evaluation procedures described in section
10(b)(1)(B) of this chapter, a periodic rate adjustment mechanism
described in subsection (c) continues in effect until the earlier of the
following:
(1) The participating electricity supplier has recovered the
program costs for which the periodic rate adjustment mechanism
was allowed.
(2) A time or upon an event specified in the commission's order
approving the periodic rate adjustment mechanism.
