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IN HB1172
Bill
Status
1/9/2017
Primary Sponsor
Sharon Negele
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AI Summary
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Requires electric utilities to solicit competitive bids when constructing, purchasing, or leasing generating facilities exceeding 50 megawatts, entering contracts for purchased electric capacity over 50 megawatts for at least one year, recovering electricity generation costs, or converting a facility's fuel source.
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Exempts rural electric membership corporations organized under IC 8-1-13 and electric cooperatives with such members from competitive bidding requirements.
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Removes provisions allowing utilities to revise original cost estimates during ongoing IURC review and repeals the automatic cost recovery provision for actual construction costs.
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Establishes that utilities may recover estimated costs if facilities operate according to their certificate of public convenience and necessity, but additional costs exceeding estimates require proof of prudent spending due to extraordinary circumstances.
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Permits utilities to recover only prudently incurred costs for approved purchased power or purchased capacity agreements through periodic rate adjustment mechanisms; the IURC may address reasonable cost recovery if it disapproves projects or utilities cancel facilities.
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Effective July 1, 2017.
Legislative Description
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
Last Action
First reading: referred to Committee on Utilities, Energy and Telecommunications
1/9/2017