Signed by Governor Eric Holcomb

Vote Smart's Synopsis:

Vote to pass a bill that establishes refinancing plans to retire coal plants.

Highlights:

• Defines "commission" as the Indiana Utility Regulatory Commission (Sec. 2).

• Classifies "securitization charges" as non-bypassable amounts that are (Sec. 8):

• Approved by the commission under a financing order to allow for the full recovery of qualified costs by an electric utility;

• Collected from all retail customers and customer classes of the electric utility, including any customer that:

• Is participating in:

• A net metering program under 170 IAC 4-4.2;

• A distributed generation program; or

• A feed-in-tariff program; offered by the electric utility; or

• Supplies at least part of the customer's electricity demand;

• Charged for the use or availability of electric services; and

• Collected by the electric utility, its successors, an assignee, or any other collection agent as provided for in the financing order.

• Specifies this law does not ban the commission from approving tariff language as part of a financing order that addresses the conditions upon which allocation adjustments are to be made, including the establishment of a process by which such allocation adjustments must be revised as necessary to preserve the rating of the securitization bonds (Sec. 10-2).

• Requires a financing order to include a mechanism requiring that securitization charges be reviewed and adjusted by the commission at least annually. Each year, not earlier than 45 days before the anniversary date of the issuance of securitization bonds under the financing order, and no later than the anniversary date of the issuance of the securitization bonds, the electric utility will submit to the commission an application to do the following (Sec. 12.c):

• Correct any over collections or under collections of securitization charges during the 12 months preceding the date of the filing of the electric utility's application under this law. For the first annual review under this law, the electric utility will correct for any over collections or under collections of securitization charges during those months:

• That precedes the date of the filing of the electric utility's application under this law; and

• In which securitization charges were collected; and

• Ensure, through proposed securitization charges, as set forth by the electric utility in the application, the expected recovery of the amount sufficient to timely provide all payments of debt service and other required amounts and charges in connection with the securitization bonds.

• Requires a financing order to provide that (Sec. 12.d):

• Any difference between:

• Qualified costs approved by the commission in the financing order; and

• The electric utility's qualified costs at the time an electric generation facility is retired will be accounted for by the electric utility as a regulatory asset or liability;

• An electric utility that ultimately incurs costs of removal and restoration greater than the amount estimated at the time an electric generation facility is retired may seek recovery of such incremental costs through rates; and

• The commission may approve recovery of incremental costs if the commission finds the costs just and reasonable.

• Specifies if an agreement by an electric utility or an assignee to transfer securitization property expressly states that the transfer is a sale or is otherwise an absolute transfer (Sec. 14.a):

• The resulting transaction:

• Is a true sale; and

• Is not a secured transaction; and

• Title, both legal and equitable, passes to the person to which the securitization property is transferred.

Full Bill Text