Senate Bill 381 Summary

• Amends IC 8-1-2.3 to create new procedures for municipally owned electric utilities to petition the Indiana Utility Regulatory Commission (IURC) to expand their service areas to include annexed territory, effective for petitions filed after June 30, 2014.

• Requires the IURC to hold a public hearing within 30-60 days of petition filing and consider factors including public convenience and necessity, adequacy of service, rate impacts, and reliability effects on both the annexed area and incumbent suppliers' existing customers.

• Grants the municipally owned utility immediate right to serve and possession of the annexed area upon IURC approval, which may include all, none, or any part of the annexed area sought.

• Obligates the municipally owned utility to pay affected incumbent electricity suppliers compensation within 30 days consisting of property value at reproduction cost and severance damages, with payment amounts and dispute resolution procedures specified by statute.

• Makes IURC orders enforceable in court pending appeal, with appellants unable to obtain a stay of court orders enforcing the commission's decision.