Bill Text: IN SB0094 | 2013 | Regular Session | Engrossed
Bill Title: Electric transmission owners.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2013-05-13 - Public Law 174 [SB0094 Detail]
Download: Indiana-2013-SB0094-Engrossed.html
Citations Affected: IC 8-1.
Synopsis: Electric transmission owners. Authorizes the utility
regulatory commission (IURC) to grant a new electric transmission
owner authority to operate as a public utility under certain conditions.
Provides that an incumbent electric transmission owner has a right of
first refusal to construct a local reliability facility. Authorizes the IURC
to resolve certain disputes between new and incumbent electric
transmission owners.
Effective: Upon passage.
(HOUSE SPONSORS _ FRIZZELL, KOCH, BATTLES)
January 7, 2013, read first time and referred to Committee on Rules and Legislative
Procedure.
February 12, 2013, amended; reassigned to Committee on Utilities.
February 21, 2013, reported favorably _ Do Pass.
February 25, 2013, read second time, ordered engrossed. Engrossed.
February 26, 2013, read third time, passed. Yeas 50, nays 0.
March 4, 2013, read first time and referred to Committee on Utilities and Energy.
April 4, 2013, amended, reported _ Do Pass.
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.
Chapter 38. Transmission Reliability
Sec. 1. As used in this chapter, "electric transmission facility" means a high voltage transmission line with a rating of at least one hundred (100) kilovolts and related transmission facilities and controls.
Sec. 2. As used in this chapter, "incumbent electric transmission owner" means a public utility that owns, operates, and maintains an electric transmission facility in whole or in part in Indiana.
Sec. 3. (a) As used in this chapter, "local reliability electric transmission facility" means an electric transmission facility located in whole or in part in Indiana that is required by a regional transmission organization to satisfy the reliability standards of the North American Electric Reliability Corporation, a regional reliability organization, or a successor corporation or organization.
If the electricity transmission facility is located in the territory of the PJM Interconnection regional transmission organization territory, or its successor organization, its rating must be:
(1) at least one hundred (100) kilovolts; and
(2) not more than three hundred (300) kilovolts.
(b) The term does not include an electric transmission facility to the extent the facility is required by a regional transmission organization primarily to address nonreliability drivers.
Sec. 4. As used in this chapter, "new electric transmission owner" means a corporation, company, partnership, limited liability company, or other organization that:
(1) on the date of its incorporation or organization, does not own, operate, or maintain an electric transmission facility located in whole or in part in Indiana; and
(2) is incorporated or organized to construct, own, operate, and maintain an electric transmission facility located in whole or in part in Indiana.
Sec. 5. As used in this chapter, "public utility" has the meaning set forth in IC 8-1-8.5-1.
Sec. 6. As used in this chapter, "regional transmission organization" refers to a regional transmission organization approved by the Federal Energy Regulatory Commission.
Sec. 7. (a) The commission shall grant a new electric transmission owner authority to operate as a public utility in Indiana if the commission makes the following findings:
(1) The new electric transmission owner has the financial, managerial, and technical capability to construct, own, operate, and maintain an electric transmission facility.
(2) The new electric transmission owner has the ability and intent to comply with all statutes, rules, and regulations enforced by the commission.
(3) The new electric transmission owner has the intent to construct, own, operate, and maintain an electric transmission facility that is under consideration by an applicable regional transmission organization.
(4) The new electric transmission owner has provided written notice of its request for authority under this section to each incumbent electric transmission owner that may connect its existing electric transmission facility to the new electric transmission facility of the new electric transmission owner.
(b) In making findings under subsection (a), the commission may consider the creditworthiness of the new electric transmission
owner, including:
(1) the new electric transmission owner's investment grade
rating;
(2) guarantees of a parent company of the new electric
transmission owner that has an investment grade rating;
(3) a bank reference letter or bonding commitment on behalf
of the new electric transmission owner;
(4) the authority of the new electric transmission owner to
directly set rates or impose taxes; and
(5) the capability of the new electric transmission owner to
meet its financial obligations if it abandons the new electric
transmission facility after its construction.
Sec. 8. A new electric transmission owner shall notify the
commission in a timely manner of the dates on which construction
of the new electric transmission facility began and was completed.
Sec. 9. (a) An incumbent electric transmission owner has the
right to construct, own, operate, and maintain the following:
(1) A local reliability electric transmission facility that
connects to an electric transmission facility owned by the
incumbent electric transmission owner.
(2) Upgrades to an existing electric transmission facility
owned by the incumbent electric transmission owner.
(b) The right to construct, own, operate, and maintain a local
reliability facility that connects to electric transmission facilities
owned by two (2) or more incumbent electric transmission owners
belongs individually and proportionately to each incumbent
electric transmission owner, unless the incumbent electric
transmission owners otherwise agree in writing.
Sec. 10. (a) An incumbent electric transmission owner may enter
into a contract with a new electric transmission owner that
proposes to connect a new electric transmission facility to the
electric transmission facility of the incumbent electric transmission
owner. The contract may assign responsibility for:
(1) maintenance and upgrades; and
(2) reliability compliance;
with respect to the new electric transmission facility.
(b) The commission has jurisdiction to resolve a dispute arising
under a contract described in subsection (a).
Sec. 11. This chapter does not affect an incumbent electric
transmission owner's use and control of existing property rights.
