Bill Text: IN SB0251 | 2011 | Regular Session | Amended
Bill Title: Clean energy.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Passed) 2011-05-18 - SECTIONS 16 through 18 effective 05/10/2011 [SB0251 Detail]
Download: Indiana-2011-SB0251-Amended.html
Citations Affected: IC 8-1.
Synopsis: Clean energy. Requires the Indiana utility regulatory
commission (IURC) to allow an energy utility to recover certain
federally mandated costs through periodic retail rate adjustment
mechanisms. Changes the term "clean coal and energy projects" to
"clean energy projects" to allow the term to include nuclear energy
production or generating facilities. Provides that: (1) nuclear energy
production or generating facilities; and (2) purchases of energy
produced by the facilities; qualify for financial incentives available for
clean energy projects. Provides that a combined heat and power facility
qualifies as a renewable energy resource for purposes of financial
incentives for clean energy projects. Provides that an eligible business
may recover qualified utility system expenses associated with a: (1)
new energy production or generating facility; or (2) new nuclear energy
production or generating facility. Requires the IURC to adopt rules to
establish the voluntary clean energy portfolio standard program to
provide incentives to participating electricity suppliers to supply
specified percentages of electricity from clean energy sources. States
three clean portfolio standard goals (CPS goals) that a participating
electricity supplier must achieve to qualify for an incentive. Provides
that a participating electricity supplier may own or purchase clean
energy credits to meet a CPS goal. Beginning in 2014, requires: (1) a
participating electricity supplier to report annually to the IURC on the
supplier's efforts to meet the CPS goals; and (2) the IURC to include in
its annual report to the regulatory flexibility committee a summary of
the information reported by participating electricity suppliers.
Effective: Upon passage; July 1, 2011.
January 6, 2011, read first time and referred to Committee on Rules and Legislative
Procedure.
February 7, 2011, amended; reassigned to Committee on Utilities and Technology.
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) As used in this section, "federally mandated costs" means capital, operation, maintenance, depreciation, research and development, tax, or carrying costs that an energy utility incurs in complying with mandates that the commission finds are, or with reasonable certainty will be, imposed on the energy utility by the federal government related to the following:
(1) Environmental laws, rules, regulations, or consent decrees, including clean air standards and costs associated with:
(A) reducing or offsetting the emission of greenhouse gases; or
(B) the purchase of emission allowances.
(2) Renewable portfolio or energy efficiency standards, including projects at existing generating facilities to allow for
fuel switching, including the use of natural or substitute
natural gas.
(3) Participation in one (1) or more industry reliability
organizations, including a regional transmission organization.
(4) Transmission and distribution pipeline integrity and
safety.
The term does not include fines or penalties assessed against or
imposed on an energy utility for violating environmental laws,
regulations, or consent decrees.
(c) An energy utility may petition the commission to recover
federally mandated costs through a periodic retail rate adjustment
mechanism. The petition must include the following:
(1) A description of the mandate that is imposed on the energy
utility by the federal government.
(2) A description and estimate of the federally mandated costs
associated with the mandate described in subdivision (1).
(3) The energy utility's plans to comply with the mandate
described in subdivision (1).
If the commission finds, after notice and hearing, that an energy
utility's proposed compliance plan described in subdivision (3) is
reasonable and necessary to comply with the mandate described in
subdivision (1), the commission shall approve the periodic retail
rate adjustment mechanism and authorize the timely recovery of
federally mandated costs by the energy utility.
(d) The commission shall adjust any changes in charges
approved for an energy utility under section 42(d) or 42(g) of this
chapter or IC 8-1-13-30(d), as applicable, to permit the energy
utility to retain revenues resulting from a periodic retail rate
adjustment mechanism approved under this section.
(1) Growth of Indiana's population and economic base has created a need for new energy production or generating facilities in Indiana.
(2) The development of a robust and diverse portfolio of energy production or generating capacity, including coal gasification and the use of renewable energy resources, is needed if Indiana is to continue to be successful in attracting new businesses and jobs.
(3) Indiana has considerable natural resources that are currently underutilized and could support development of new energy
production or generating facilities, including coal gasification
facilities, at an affordable price.
(4) Certain regions of the state, such as southern Indiana, could
benefit greatly from new employment opportunities created by
development of new energy production or generating facilities
utilizing the plentiful supply of coal from the geological formation
known as the Illinois Basin.
(5) Technology can be deployed that allows high sulfur coal from
the geological formation known as the Illinois Basin to be burned
or gasified efficiently while meeting strict state and federal air
quality limitations. Specifically, the state should encourage the
use of advanced clean coal technology, such as coal gasification.
(6) It is in the public interest for the state to encourage the
construction of new energy production or generating facilities that
increase the in-state capacity to provide for current and
anticipated energy demand at a competitive price.
(7) It is in the public interest for the state to encourage the
study, analysis, construction, and life cycle management of
nuclear energy production or generating facilities, as well as
carbon dioxide capture, transportation, and storage facilities.
(b) The purpose of this chapter is to enhance Indiana's energy
security and reliability by ensuring all of the following:
(1) Indiana's and the region's energy production or generating
capacity continues to be adequate to provide for Indiana's current
and future energy needs, including the support of the state's
economic development efforts.
(2) The vast and underutilized coal resources of the Illinois Basin
are used as a fuel source for new energy production or generating
facilities.
(3) The electric transmission and gas transportation systems
within Indiana are upgraded to distribute additional amounts of
electricity and gas more efficiently.
(4) Jobs are created as new energy production or generating
facilities are built in regions throughout Indiana.
(5) The study, analysis, construction, and life cycle
management of nuclear energy production or generating
facilities are encouraged at the same time as are new coal
fired and other fossil fuel based energy production or
generating facilities.
projects" means any of the following:
(1) Any of the following projects:
(A) Projects at new energy production or generating facilities
that employ the use of clean coal technology and that produce
energy, including substitute natural gas, primarily from coal,
or gases derived from coal, from the geological formation
known as the Illinois Basin.
(B) Projects to provide advanced technologies that reduce
regulated air emissions from existing energy production or
generating plants that are fueled primarily by coal or gases
from coal from the geological formation known as the Illinois
Basin, such as flue gas desulfurization and selective catalytic
reduction equipment.
(C) Projects to provide electric transmission facilities to serve
a new energy production or generating facility or a nuclear
energy production or generating facility.
(D) Projects that produce substitute natural gas from Indiana
coal by construction and operation of a coal gasification
facility.
(E) Projects or potential projects that employ the use of
nuclear energy production or generating technologies to
produce electricity.
(2) Projects to develop alternative energy sources, including
renewable energy projects and or coal gasification facilities.
(3) The purchase of fuels or energy produced by a coal
gasification facility or by a nuclear energy production or
generating facility.
(4) Projects described in subdivisions (1) through (3) (2) that use
coal bed methane.
(1) as a fuel to generate energy; or
(2) as substitute natural gas.
(1) proposes to construct or repower a new energy production or
generating facility;
(2) proposes to construct or repower a project described in section
2(1) or 2(2) of this chapter;
(3) undertakes a project to develop alternative energy sources,
including renewable energy projects or coal gasification
facilities; or
(4) purchases fuels or energy produced by a coal gasification
facility or by a nuclear energy production or generating
facility.
(1) The facility produces energy primarily from coal or gases from coal from the geological formation known as the Illinois Basin.
(2) The facility is a:
(A) newly constructed or newly repowered energy
(B) newly constructed
dedicated primarily to serving Indiana retail customers.
(3) The repowering, construction, or expansion of the facility was begun by an Indiana utility after July 1, 2002.
(4) Except for a facility that is a clean
(b) The term includes the transmission lines, gas transportation facilities, and associated equipment employed specifically to serve a new energy generating or coal gasification facility.
(1) The facility is a:
(A) newly constructed or repowered facility; or
(B) newly constructed capacity expansion, power uprate, or life cycle management at an existing facility;
dedicated primarily to serving Indiana customers.
(2) The construction, repowering, expansion, power uprate, or life cycle management was begun by an Indiana utility after July 1, 2008.
(3) The facility has an aggregate rated electric generating capacity of at least one hundred (100) megawatts for all units at one (1) site or a generating capacity of at least four hundred thousand (400,000) pounds per hour of steam.
(b) The term includes the transmission lines and other associated equipment employed specifically to serve a nuclear energy production or generating facility.
(1) Any preconstruction costs associated with the study, analysis, or development of a:
(A) new energy production or generating facility; or
(B) new nuclear energy production or generating facility;
including siting, design, licensing, and permitting costs, regardless of whether the facility for which such costs are incurred is ultimately constructed or placed in service.
(2) The expansion, power uprate, or life cycle management of a nuclear energy production or generating facility.
(1) new energy production or generating
(2) new nuclear energy production or generating facility;
used, or to be used, in whole or in part, by an energy utility to provide retail energy service (as defined in IC 8-1-2.5-3) regardless of whether that service is provided under IC 8-1-2.5 or another provision of this article.
(1) Energy from wind.
(2) Solar energy.
(3) Photovoltaic cells and panels.
(4) Dedicated crops grown for energy production.
(5) Organic waste biomass, including any of the following organic matter that is available on a renewable basis:
(A) Agricultural crops.
(B) Agricultural wastes and residues.
(C) Wood and wood wastes, including the following:
(i) Wood residues.
(ii) Forest thinnings.
(iii) Mill residue wood.
(D) Animal wastes.
(E) Animal byproducts.
(F) Aquatic plants.
(G) Algae.
(6) Hydropower from existing dams.
(7) Fuel cells.
(8) Energy from waste to energy facilities.
(9) Energy storage systems.
(10) Combined heat and power facilities.
(b) Except for energy described in subsection (a)(8), the term does not include energy from the incinerations, burning, or heating of any of the following:
(1) Tires.
(2) General household, institutional, commercial, industrial lunchroom, office, or landscape waste.
(c) The term excludes treated or painted lumber.
(1) The timely recovery of costs incurred during construction and operation of projects described in section 2(1) or 2(2) of this chapter.
(2) The authorization of up to three (3) percentage points on the
return on shareholder equity that would otherwise be allowed to
be earned on projects described in subdivision (1).
(3) Financial incentives for the purchase of fuels or energy
produced by a coal gasification facility or by a nuclear energy
production or generating facility, including cost recovery and
the incentive available under subdivision (2).
(4) Financial incentives for projects to develop alternative energy
sources, including renewable energy projects or coal gasification
facilities.
(5) Other financial incentives the commission considers
appropriate.
(b) An eligible business must file an application to the commission
for approval of a clean coal and energy project under this section. This
chapter does not relieve an eligible business of the duty to obtain any
certificate required under IC 8-1-8.5 or IC 8-1-8.7. An eligible business
seeking a certificate under IC 8-1-8.5 or IC 8-1-8.7 and this chapter for
one (1) project may file a single application for all necessary
certificates. If a single application is filed, the commission shall
consider all necessary certificates at the same time.
(c) The commission shall promptly review an application filed
under this section for completeness. The commission may request
additional information the commission considers necessary to aid in its
review.
(d) The commission shall, after notice and hearing, issue a
determination of a project's eligibility for the financial incentives
described in subsection (a) 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.
(1) new energy
(2) new nuclear energy production or generating facilities;
financial incentives in the form of timely recovery of the costs incurred in connection with the study, analysis, development, siting, design, licensing, permitting, construction, repowering, expansion, power uprate, life cycle management, operation, or maintenance of the facilities.
(b) An eligible business seeking authority to timely recover the costs described in subsection (a) must apply to the commission for approval
of a rate adjustment mechanism in the manner determined by the
commission.
(c) An application must include the following:
(1) A schedule for the completion of construction, repowering,
power uprating, life cycle management, or expansion of the
new energy generating or coal gasification facility for which rate
relief is sought.
(2) Copies of the most recent integrated resource plan filed with
the commission, if applicable.
(3) The amount of capital investment by the eligible business in
the new energy generating or coal gasification facility.
(4) Other information the commission considers necessary.
(d) The commission shall allow an eligible business to recover:
(1) the costs associated with qualified utility system property; and
(2) qualified utility system expenses;
if the eligible business provides substantial documentation that the
expected costs associated with qualified utility system property and
expenses and the schedule for incurring those costs and expenses are
reasonable and necessary.
(e) The commission shall allow an eligible business to recover the
costs associated with the purchase of fuels or energy produced by a
coal gasification facility or by a nuclear energy production or
generating facility if the eligible business provides substantial
documentation that the costs associated with the purchase are
reasonable and necessary.
(f) A retail rate adjustment mechanism proposed by an eligible
business under this section may be based on actual or forecasted data.
If forecast data is used, the retail rate adjustment mechanism must
contain a reconciliation mechanism to correct for any variance between
the forecasted costs and the actual costs.
(1) The amount of Illinois Basin coal, if any, purchased during the previous month for use in a new energy production or generating
(2) The amount of any fuel or energy produced by:
(A) a coal gasification facility;
(B) a nuclear energy production or generating facility;
that is purchased by the eligible business during the previous month.
(3) Any other information the lieutenant governor may reasonably require.
(1) renewable energy resources; and
(2) nuclear energy production or generating technologies to produce electricity;
in Indiana. Each year, the group shall submit a report on the study to the commission for inclusion in the commission's annual report to the regulatory flexibility committee described in IC 8-1-2.5-9 and IC 8-1-2.6-4.
(b) The report required by this section must include suggestions from the group to encourage the development and use of:
(1) renewable energy resources and technologies,
(2) nuclear energy production or generating technologies;
appropriate for use in Indiana.
(1) develops or makes use of:
(A) clean
(B) renewable energy resources (as defined in IC 8-1-8.8-10) for the production of electricity;
(C) integrated gasification combined cycle (IGCC) technology to produce synthesis gas that is used:
(i) to generate electricity; or
(ii) as a substitute for natural gas;
regardless of the fuel source used to produce the synthesis gas;
(D) methane recovered from landfills for the production of electricity;
(E) demand side management, energy efficiency, or conservation programs; or
(F) coal bed methane;
(2) results in quantifiable reductions in, or the avoidance of:
(A) the use of electricity produced by traditional electric generating facilities that use fossil fuels as their fuel source; or
(B) regulated air pollutants and carbon emissions produced by traditional electric generating facilities that use fossil fuels as their fuel source; and
(3) is implemented under a plan approved by:
(A) the office; and
(B) a corporation's or a cooperatively owned power supplier's board of directors.
Chapter 37. Clean Energy Portfolio Standard Program
Sec. 1. As used in this chapter, "base year" means the calendar year ending December 31, 2010.
Sec. 2. As used in this chapter, "clean energy" means electricity that is produced from a clean energy resource.
Sec. 3. As used in this chapter, "clean energy credit", or "CEC", means an interest that:
(1) represents:
(A) one (1) megawatt hour of clean energy that satisfies the applicable conditions set forth in section 12(b)(2) of this chapter, if the CEC represents clean energy that is not generated by a facility located in Indiana; or
(B) one and twenty-five hundredths (1.25) megawatt hours of clean energy, if the CEC represents clean energy that is generated by a facility located in Indiana;
(2) is quantifiable and transferrable; and
(3) is possessed by not more than one (1) entity at a time.
Sec. 4. As used in this chapter, "clean energy resource" means any of the following sources, clean sources, alternative technologies, or programs used in connection with the production or conservation of electricity:
(1) Energy from wind.
(2) Solar energy.
(3) Photovoltaic cells and panels.
(4) Dedicated crops grown for energy production.
(5) Organic waste biomass, including any of the following organic matter that is available on a renewable basis:
(A) Agricultural crops.
(B) Agricultural wastes and residues.
(C) Wood and wood wastes, including the following:
(i) Wood residues.
(ii) Forest thinnings.
(iii) Mill residue wood.
(D) Animal wastes.
(E) Animal byproducts.
(F) Aquatic plants.
(G) Algae.
(6) Hydropower.
(7) Fuel cells.
(8) Hydrogen.
(9) Energy from waste to energy facilities, including energy derived from advanced solid waste conversion technologies.
(10) Energy storage systems or technologies.
(11) Geothermal energy.
(12) A clean coal and energy project described in IC 8-1-8.8-2(1)(D).
(13) Carbon capture and storage projects.
(14) Nuclear energy.
(15) 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.
(16) Coal bed methane.
(17) Combined heat and power systems.
(18) 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.
(19) Industrial byproduct technologies that use fuel or energy that is a byproduct of an industrial process.
Sec. 5. As used in this chapter, "clean portfolio standard goal", or "CPS goal", refers to a goal set forth in section 12(a) of this chapter that a participating electricity supplier must achieve during a specified period during the program to qualify for one (1) or more of the financial incentives described in section 13 of this
chapter.
Sec. 6. (a) As used in this chapter, "electricity supplier" means
a public utility (as defined in IC 8-1-2-1) that furnishes retail
electric service to customers in Indiana on January 1, 2011.
(b) The term does not include a utility that is:
(1) a municipally owned utility (as defined in IC 8-1-2-1(h));
(2) a corporation organized under IC 8-1-13; or
(3) a corporation organized under IC 23-17 that is an electric
cooperative and that has at least one (1) member that is a
corporation organized under IC 8-1-13.
Sec. 7. As used in this chapter, "participating electricity
supplier" refers to an electricity supplier that has been approved
by the commission under section 11 of this chapter to participate
in the program.
Sec. 8. As used in this chapter, "program" refers to the Indiana
clean energy portfolio standard program established by the
commission under section 10 of this chapter.
Sec. 9. As used in this chapter, "regional transmission
organization", with respect to an electricity supplier, refers to the
regional transmission organization approved by the Federal
Energy Regulatory Commission for the control area that includes
the electricity supplier's assigned service area (as defined in
IC 8-1-2.3-2).
Sec. 10. (a) Subject to subsection (d), the commission shall adopt
rules under IC 4-22-2 to establish the Indiana clean energy
portfolio standard program. The program established under this
section must be a voluntary program that provides incentives to
participating electricity suppliers that undertake to supply
specified percentages of the total electricity supplied to their
Indiana retail electric customers from clean energy.
(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 set forth in section 13 of this
chapter; and
(D) the reporting requirements set forth in section 14 of
this chapter;
(2) take effect not later than January 1, 2012; and
(3) 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 adopt the rules required by this section. 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.
Sec. 11. (a) An electricity supplier that seeks to participate in the
program established by the commission under section 10 of this
chapter must apply to the commission:
(1) in the manner and on a form prescribed by the
commission; and
(2) not later than a date specified by the commission in the
rules adopted under section 10 of this chapter;
for approval to participate in the program.
(b) Upon receiving an application under subsection (a), the
commission shall review the application for completeness. The
commission may request additional information the commission
considers necessary to aid in the commission's review.
(c) The commission shall approve an application submitted
under subsection (a) if the commission determines that:
(1) the application is complete and accurate; and
(2) the electricity supplier submitting the application has
demonstrated that the electricity supplier has a reasonable
expectation of supplying clean energy to its Indiana retail
electric customers during the calendar year ending December
31, 2025, in an amount equal to at least ten percent (10%) of
the total electricity supplied by the participating electricity
supplier to its Indiana retail electric customers during the
base year, as set forth in section 12(a)(3) of this chapter.
Sec. 12. (a) Subject to subsection (b), to qualify for the financial
incentives set forth in section 13 of this chapter, a participating
electricity supplier must supply clean energy to the participating
electricity supplier's Indiana retail electric customers according to
the following CPS goals:
(1) CPS Goal I: In the calendar year ending December 31,
2013, at least four percent (4%) of the total electricity
supplied by the participating electricity supplier to its Indiana
retail electric customers during the base year.
(2) CPS Goal II: For the five (5) calendar years beginning
January 1, 2014, and ending December 31, 2018, an average
of at least four percent (4%) of the total electricity supplied
by the participating electricity supplier to its Indiana retail
electric customers during the base year. In the calendar year
ending December 31, 2019, at least seven percent (7%) of the
total electricity supplied by the participating electricity
supplier to its Indiana retail electric customers during the
base year.
(3) CPS Goal III: For the five (5) calendar years beginning
January 1, 2020, and ending December 31, 2024, an average
of at least seven percent (7%) of the total electricity supplied
by the participating electricity supplier to its Indiana retail
electric customers during the base year. In the calendar year
ending December 31, 2025, at least ten percent (10%) of the
total electricity supplied by the participating electricity
supplier to its Indiana retail electric customers during the
base year.
For purposes of this subsection, electricity is measured in
megawatt hours. However, in determining whether a participating
electricity supplier has met a CPS goal set forth in this subsection,
the commission shall multiply each megawatt hour of clean energy
that is generated by a facility located in Indiana by a factor of one
and twenty-five hundredths (1.25).
(b) 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 (e), is supplied by the
participating electricity supplier to the participating
electricity supplier's Indiana retail electric customers during
the CPS goal period under consideration; and
(2) meets one (1) of the following conditions:
(A) Is generated by a facility located in Indiana or in a
control area that is part of the regional transmission
organization of which the participating electricity supplier
is a member.
(B) Is generated by a facility that:
(i) is not located in Indiana or in a control area that is
part of the regional transmission organization of which
the participating electricity supplier is a member; and
(ii) is located in a control area that is part of another
regional transmission organization and that is adjacent
to a control area that is part of the regional transmission
organization of which the participating electricity
supplier is a member;
if the participating electricity supplier owns at least a
forty-nine percent (49%) interest in the facility.
(c) To the extent feasible, a participating electricity supplier
shall apply toward meeting the CPS goals set forth in subsection (a)
clean energy that is:
(1) generated by facilities that are:
(A) owned;
(B) operated; or
(C) in the process of being constructed;
by the participating electricity supplier on January 1, 2011;
or
(2) purchased under a contract at no additional cost to the
participating electricity supplier's Indiana retail electric
customers.
(d) 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 one (1) of the conditions set forth in subsection (b)(2).
(e) 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.
(f) A participating electricity supplier may use a clean energy
resource described in section 4(18) of this chapter to satisfy not
more than thirty percent (30%) of any of the CPS goals set forth
in subsection (a).
Sec. 13. (a) The commission shall establish the following
incentives for participating electricity suppliers:
(1) A shareholder incentive consisting of the authorization of
an increased overall rate of return on equity, not to exceed
fifty (50) basis points over a participating electricity supplier's
authorized rate of return, whenever the participating
electricity supplier attains a CPS goal set forth in section 12(a)
of this chapter. The number of additional basis points
authorized by the commission under this subdivision may:
(A) be different for each of the CPS goal periods identified
in section 12(a) of this chapter, as the commission
determines is appropriate; and
(B) in the case of a particular participating electricity
supplier, be based, in part, on the extent to which the
participating electricity supplier has attempted to meet a
particular CPS goal in the manner specified in section
12(c) of this chapter.
The additional basis points authorized by the commission
under this subdivision for each CPS goal period are not
cumulative. 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.
(2) The recovery, by means of a periodic rate adjustment
mechanism, of all reasonable and necessary program costs
incurred by a participating electricity supplier in:
(A) constructing, operating, or maintaining facilities that
generate clean energy that:
(i) 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
(ii) meets the requirements set forth in section 12(b) of
this chapter; or
(B) otherwise generating or purchasing clean energy that:
(i) 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
(ii) meets the requirements set forth in section 12(b) of
this chapter.
For purposes of this subdivision, "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 clause (A) or (B).
(3) Incentives based on:
(A) the sharing of achieved savings or as a percentage of
costs; or
(B) avoided costs resulting from achieving demand side
management or energy efficiency targets.
(4) The recovery of lost revenues associated with
implementation of demand side management or energy
efficiency initiatives.
(5) 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 measure in accordance with
commission rules.
(b) A participating electricity supplier that seeks one (1) or more
incentives established by the commission under subsection (a) 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 incentives sought.
(c) 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.
(d) The commission shall, after notice and hearing, issue a
determination of a participating electricity supplier's eligibility for
the financial incentives 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.
(e) 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)(1) 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.
(f) 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 financial incentive described in
subsection (a)(2) 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.
Sec. 14. (a) Subject to subsection (c), beginning in 2014, each
participating electricity supplier shall report to the commission not
later than March 1 of each year on the following:
(1) The participating electricity supplier's efforts, if any,
during the most recently ended calendar year to meet the CPS
goal applicable to the most recently ended calendar year.
(2) The total amount of renewable energy supplied to the
participating electricity supplier's Indiana retail electric
customers during the most recently ended calendar year,
including a breakdown of the following:
(A) The amount of clean energy generated by facilities
owned or operated by the participating electricity supplier.
The participating electricity supplier shall identify each
facility by:
(i) name and location;
(ii) total generating capacity;
(iii) total amount of electricity generated at the facility
during the most recently ended calendar year, including
the percentage of this amount that was supplied to the
participating electricity supplier's Indiana retail electric
customers; and
(iv) total amount of clean energy generated at the facility
during the most recently ended calendar year, including
the percentage of this amount that was supplied to the
participating electricity supplier's Indiana retail electric
customers.
(B) The amount of clean energy purchased from other
suppliers of clean energy. The participating electricity
supplier shall identify:
(i) each supplier from whom clean energy was
purchased;
(ii) the amount of clean energy purchased from each
supplier;
(iii) the price paid by the participating electricity
supplier for the clean energy purchased from each
supplier; and
(iv) to the extent known, the name and location of each
facility at which the clean energy purchased from each
supplier was generated.
(3) The number of CECs purchased by the participating
electricity supplier during the most recently ended calendar
year. The participating electricity supplier shall identify:
(A) each person from whom one (1) or more CECs was
purchased;
(B) the price paid to each person identified in clause (A) for
the CECs purchased;
(C) the number of CECs applied, if any, during the most
recently ended calendar year to meet the CPS goal
applicable to the most recently ended calendar year; and
(D) the number of CECs, if any, that the participating
electricity supplier plans to carry over to the next
succeeding CPS goal period, as permitted by section 12(e)
of this chapter.
(4) The participating electricity supplier's plans for meeting
the CPS goal applicable to the calendar year in which the
report is submitted.
(5) Advances in clean energy technology that affect activities
described in subdivisions (1) and (4).
(6) Any other information that the commission prescribes in
rules adopted under IC 4-22-2.
For purposes of this subsection, amounts of clean energy and
electricity shall be reported in megawatt hours. A participating
electricity supplier's duty to submit a report under this subsection
terminates after the participating electricity supplier has submitted
the report that applies to the calendar year ending December 31,
2025.
(b) Subject to subsection (c), beginning in 2014, the
commission's annual report to the regulatory flexibility committee
under IC 8-1-2.5-9(b) must include a summary of the information
provided by participating electricity suppliers under subsection (a)
with respect to the most recently ended calendar year. The
commission's duty to include the information specified in this
subsection in its annual report to the regulatory flexibility
committee terminates after the commission has submitted the
information that applies to the calendar year ending December 31,
2025.
(c) This section does not empower the commission to require a
participating electricity supplier to disclose confidential and
proprietary business plans and other confidential information
without adequate protection of the information. The commission
shall exercise all necessary caution to avoid disclosure of
confidential information supplied under this section.
