Introduced House Bill (H)

Authored by

DIGEST

Competitive procurement by electric utilities. Requires an electric utility that applies to the Indiana utility regulatory commission (IURC) to: (1) construct, purchase, or lease a generating facility with a generating capacity of more than 50 megawatts (MW); (2) enter a contract to purchase for at least one year electric capacity of more than 50 MW; (3) recover certain costs related to electricity generation; or (4) convert the fuel source of a generating facility; to solicit competitive bids from alternative suppliers of the same resource or from suppliers of alternative resources. Specifies that the requirement to solicit competitive bids does not Competitive procurement by electric utilities. Requires an electric utility that applies to the Indiana utility regulatory commission (IURC) to: (1) construct, purchase, or lease a generating facility with a generating capacity of more than 50 megawatts (MW); (2) enter a contract to purchase for at least one year electric capacity of more than 50 MW; (3) recover certain costs related to electricity generation; or (4) convert the fuel source of a generating facility; to solicit competitive bids from alternative suppliers of the same resource or from suppliers of alternative resources. Specifies that the requirement to solicit competitive bids does not apply to rural electric membership corporations. Removes a provision allowing a utility to revise, as part of an ongoing review by the IURC, original cost estimates for the construction of a generating facility. Repeals a provision allowing a utility to recover through its rates, and under specified circumstances, actual costs incurred in the construction of a generating facility. Provides that if: (1) the IURC disapproves all or part of the construction or cost of a facility under review; or (2) a utility cancels the facility; the commission may address reasonable cost recovery by the utility. Provides that with respect to an approved purchased power or purchased capacity agreement, a utility may recover, through a periodic rate adjustment mechanism, only those costs that are prudently incurred. Provides that a utility: (1) may recover the estimated costs for a facility if the facility operates in accordance with its certificate of public convenience and necessity; and (2) may not recover costs exceeding the estimated costs unless the additional costs were prudently incurred and due to exceptional circumstances. Makes a technical change. ... View more