HB1382 - Retirement of electric generating units.

1 Co-Sponsor

Retirement of electric generating units. Amends the descriptions of "reliability" and "resiliency" as attributes of electric utility service in the Indiana Code section that sets forth state policy concerning Indiana's electric generation resource mix, energy infrastructure, and electric service ratemaking constructs. Repeals the Indiana Code section concerning the retirement, sale, or transfer of electric generation facilities. Adds new language that does the following: (1) Defines an "electric generating unit" as one or more fossil fuel fired: (A) combustion; or (B) steam; generating sources that are used for generating electricity and that deliver all or part of the electricity generated to the electric grid for sale. (2) Provides that the Indiana utility regulatory commission (IURC) has the authority to approve or deny the retirement of an electric generating unit (unit). (3) Provides that before retiring a unit, a public utility must apply to the IURC for an order approving the retirement. (4) Provides that in an application to retire a unit, a public utility must: (A) provide evidence regarding the costs of retiring the unit; and (B) demonstrate that the retirement will result in a cost savings to customers. (5) Requires the IURC to issue an order: (A) approving; (B) approving with conditions; or (C) denying; an application to retire a unit not later than 180 days after receiving the application. (6) Provides that there is a rebuttable presumption against the retirement of a unit. (7) Prohibits the IURC from: (A) approving the retirement of unit; (B) authorizing a surcharge in connection with the retirement of a unit; or (C) authorizing or allowing for the recovery of costs in connection with the retirement of a unit; unless the IURC makes certain findings. Requires the IURC to include in its annual report certain information about the retirement of electric generating units with respect to the state fiscal year covered by the report. Authorizes the IURC to: (1) issue a general administrative order; or (2) adopt administrative rules; to implement the bill's provisions. Makes corresponding changes to the Indiana Code section concerning public utilities' depreciation rates.