§ 8-1-2-24 — Arrangement for distribution of profits or sliding scale of charges; temporary discount to demand component of electricity rates and charges

Indiana § 8-1-2-24

• Jurisdiction: Indiana
• Art. 1: UTILITIES GENERALLY
• Ch. 2: Utility Regulation

Text

(a) Nothing in this chapter shall be taken to
prohibit a public utility from entering into any reasonable arrangement
with its customers or consumers, or with its employees, or with any
municipality in which any of its property is located, for the division or
distribution of its surplus profits, or providing for a sliding scale of
charges or other financial device that may be practicable and
advantageous to the parties interested. No such arrangement or device
shall be lawful until it shall be found by the commission, after
investigation, to be reasonable and just and not inconsistent with the
purpose of this chapter. Such arrangement shall be under the
supervision and regulation of the commission.
(b) A customer of an electricity supplier (as defined in IC 8-1-2.3-2)
that is a public utility that is under the jurisdiction of the commission
for the approval of rates and charges may apply to the commission for
a temporary discount to the demand component of the rates and charges
contained in the electricity supplier's applicable standard tariff for
service to a single facility of the customer that is located in Indiana if
the customer:
(1) has or will have a maximum demand for electricity of at least
five (5) megawatts at the facility;
(2) employs or will employ more than fifty (50) full-time
employees at the facility;
(3) demonstrates that the temporary discount is necessary and
essential for the customer to locate a facility in Indiana or to
attract or create additional jobs or retain existing jobs at the
facility;
(4) demonstrates that the customer's demand for electricity at the
facility will:
(A) for an existing customer, increase by at least one (1)
megawatt as a result of the jobs created or retained under
subdivision (3); or
(B) for a prospective customer, equal at least five (5) megawatts
as a result of locating the facility in Indiana; and
(5) has applied for and received from the Indiana economic
development corporation approval for the requested temporary
discount amount.
(c) Upon receiving an application from a customer of an electricity
supplier under subsection (b), the commission may approve a
temporary discount to the demand component of the rates and charges
contained in the electricity supplier's applicable standard tariff if the
commission finds that the discount is just and reasonable and
consistent with the circumstances described by the customer under
subsection (b), as follows:
(1) For circumstances not described in subdivision (2) or (3), a
discount up to ten percent (10%).
(2) For circumstances involving a redevelopment project in which
the customer is involved, a discount up to fifteen percent (15%).
(3) For circumstances involving a brownfield project in which the
customer is involved, a discount up to twenty percent (20%).
(d) A temporary discount authorized under subsection (c) expires
three (3) years after the effective date of the discount. The cost of the
temporary discount shall be included by the commission in the cost of
service for the electricity supplier and shall be deferred for ratemaking
purposes by the electricity supplier for subsequent recovery in
connection with the electricity supplier's next general retail electric rate
case.
(e) A customer that receives a temporary discount under this section
for service to a facility may not:
(1) enter into a contract with the customer's electricity supplier for
electric utility service to the facility that provides for rates, terms,
or conditions that differ from the rates, terms, and conditions
contained in the electricity supplier's applicable standard tariff; or
(2) take electric utility service to the facility under a
commission-approved economic development tariff offered by the
electricity supplier.
(f) A temporary discount authorized under subsection (c) applies as
follows:
(1) For an existing customer, only to the demand component of
the customer's rates and charges related to the increase in the
customer's load described in subsection (b)(4)(A). However, the
commission may authorize the application of the applicable
temporary discount under subsection (c) to all or part of the
demand component of the customer's rates and charges related to
the entire facility if the commission determines that a broader
application is beneficial to all customers of the electricity
supplier.
(2) For a prospective customer, to the demand components of the
customer's rates and charges related to the entire load described
in subsection (b)(4)(B).
(g) As used in this section, and except where otherwise indicated,
"customer" includes a prospective customer of an electricity supplier.
Formerly: Acts 1913, c.76, s.27. As amended by P.L.59-1984,
SEC.16; P.L.133-2013, SEC.3; P.L.222-2014, SEC.1.