IN HB1007 | 2025 | Regular Session
Status
Spectrum: Partisan Bill (Republican 4-0)
Status: Introduced on January 13 2025 - 25% progression
Action: 2025-01-29 - Recommitted to Committee on Ways and Means pursuant to House Rule 126.3
Hearing: Feb 5 @ 1:30 pm in Room 404
Text: Latest bill text (Comm Sub) [PDF]
Status: Introduced on January 13 2025 - 25% progression
Action: 2025-01-29 - Recommitted to Committee on Ways and Means pursuant to House Rule 126.3
Hearing: Feb 5 @ 1:30 pm in Room 404
Text: Latest bill text (Comm Sub) [PDF]
Summary
Energy generation resources. Provides a credit against state tax liability for expenses incurred in the manufacture of a small modular nuclear reactor (SMR) in Indiana. Establishes procedures under which certain energy utilities may request approval for one or more of the following from the Indiana utility regulatory commission (IURC): (1) An expedited generation resource plan (EGR plan) to meet customer load growth that exceeds a specified threshold. (2) A generation resource submittal for the acquisition of a specific generation resource in accordance with an approved EGR plan. (3) A project to serve one or more large load customers. Sets forth: (1) the requirements for approval of each of these types of requests; (2) standards for financial assurances by large load customers; and (3) cost recovery mechanisms for certain acquisition costs or project costs incurred by energy utilities. Authorizes a public utility to petition the IURC for approval to incur, before obtaining a certificate of public convenience and necessity (CPCN) for an SMR, project development costs for the development of the SMR. Provides that if a public utility receives approval to incur project development costs for an SMR, the public utility may petition the IURC for the approval of a rate schedule that periodically adjusts the public utility's rates and charges to provide for the timely recovery of project development costs. Provides that a public utility that is authorized to recover project development costs shall: (1) recover 80% of the approved project development costs under the approved rate schedule; and (2) defer the remaining 20% of approved project development costs for recovery as part of public utility's next general rate case before the IURC. Provides that project development costs that: (1) are incurred by a public utility; and (2) exceed the best estimate of project development costs included in the IURC's order authorizing the public utility to incur project development costs; may not be included in the public utility's rates and charges unless found by the IURC to be reasonable, necessary, and prudent in supporting the construction, purchase, or lease of the SMR for which they were incurred. Provides that: (1) project development costs incurred for a project that is canceled or not completed may be recovered by the public utility if found by the IURC to be reasonable, necessary, and prudently incurred; but (2) such costs shall be recovered without a return unless the IURC makes certain additional findings. Amends the statute concerning public utilities' annual electric resource planning reports to the IURC to provide that for an annual report submitted after December 31, 2025, a public utility must include information as to the amount of generating resource capacity or energy that the public utility plans to retire or refuel with respect to any electric generation resource of at least 125 megawatts. Provides that for any planned retirement or refueling, the public utility must include, along with other specified information, information as to the public utility's plans with respect to the following: (1) For a retirement, the amount of replacement capacity identified to provide approximately the same accredited capacity within the appropriate regional transmission organization (RTO) as the capacity of the facility to be retired. (2) For a refueling, the extent to which the refueling will maintain or increase the current generating resource accredited capacity or energy that the electric generating facility provides, so as to provide approximately the same accredited capacity within the appropriate RTO. Requires IURC staff to prepare a staff report for each public utility report that includes a planned electric generation resource retirement. Provides that if, after reviewing a public utility's report and any related staff report, the IURC is not satisfied that the public utility can satisfy both its planning reserve margin requirement and the statute's prescribed reliability adequacy metrics, the IURC shall conduct an investigation into the reasons for the public utility's inability to meet these requirements. Provides that if the public utility's report indicates that the public utility plans to retire an electric generating facility within one year of the date of the report, the IURC must conduct such an investigation. Provides that: (1) a public utility may request, not earlier than three years before the planned retirement date of an electric generation facility, that the IURC conduct an investigation into the planned retirement; and (2) if the IURC conducts an investigation at the request of the public utility within that three year period, the IURC may not conduct a subsequent investigation that would otherwise be required under the bill's provisions unless the IURC is not satisfied that the public utility can satisfy both its planning reserve margin requirement and the statutory reliability adequacy metrics as of the time the investigation would otherwise be required. Provides that if a CPCN is granted by the IURC for a facility intended to repower or replace a generation unit that is planned for retirement, and the CPCN includes findings that the project will result in at least equivalent accredited capacity and will provide economic benefit to ratepayers as compared to the continued operation of the generating unit to be retired, the CPCN constitutes approval by the IURC for purposes of an investigation that would otherwise be required. Provides that if, after an investigation, the IURC determines that the capacity resources available to the public utility will not be adequate to allow the public utility to satisfy both its planning reserve margin requirements and the statute's prescribed reliability adequacy metrics, the IURC shall issue an order: (1) directing the public utility to acquire or construct; or (2) prohibiting the retirement or refueling of; such capacity resources that are reasonable and necessary to enable the public utility to meet these requirements. Provides that if the IURC does not issue an order in an investigation within 120 days after the initiation of the investigation, the public utility is considered to be able to satisfy both its planning reserve margin requirement and the statutory reliability adequacy metrics with respect to the retirement of the facility under investigation. Provides that if the IURC issues an order to prohibit the retirement or refueling of an electric generation resource, the IURC shall create a sub-docket to authorize the public utility to recover in rates the costs of the continued operation of the electric generation resource proposed to be retired or refueled, subject to a finding by the IURC that the continued costs of operation are just and reasonable. Makes a technical change to another Indiana Code section to recognize the redesignation of subsections within the section containing these provisions.
Title
Energy generation resources.
Sponsors
History
| Date | Chamber | Action |
|---|---|---|
| 2025-01-29 | House | Recommitted to Committee on Ways and Means pursuant to House Rule 126.3 |
| 2025-01-29 | House | Committee report: amend do pass, adopted |
| 2025-01-28 | House | Representative Bartels added as coauthor |
| 2025-01-13 | House | First reading: referred to Committee on Utilities, Energy and Telecommunications |
| 2025-01-13 | House | Authored by Representative Soliday |
| 2025-01-13 | House | Coauthored by Representatives Shonkwiler and Pressel |
