HB 1407 Summary

• Requires the utility regulatory commission to report annually to the regulatory flexibility committee on Indiana's advanced energy resource market, compliance rates for electricity suppliers, and strategies to encourage compliance beginning July 1, 2013.

• Establishes advanced energy resource standards requiring all electricity suppliers to supply at least 25% of total electricity from advanced energy resources by December 31, 2025, with interim renewable energy targets escalating from 3% in 2012 to 12.5% by 2025.

• Imposes compliance payments on electricity suppliers that fail to meet standards, calculated as the shortfall in megawatt hours multiplied by $50 (adjusted annually for inflation after 2012).

• Creates the advanced energy compliance account within the state general fund to receive compliance payments and provide financial and technical assistance for advanced energy projects, with money continuously appropriated.

• Allows the commission to extend compliance deadlines or reduce obligations if compliance would increase customer rates by 6% or more, or if events beyond the supplier's control prevent compliance.