§ 8-1-40.5-12 — Interests in securitization property and charges; securitization charges nonbypassable; review and adjustment of securitization charges; recovery of incremental costs

Indiana § 8-1-40.5-12

• Jurisdiction: Indiana
• Art. 1: UTILITIES GENERALLY
• Ch. 40.5: Pilot Program for Cost Securitization for Retired

Text

(a) The interest of an assignee in
securitization property and in securitization charges is not subject to
setoff, counterclaim, surcharge, or defense by the electric utility or any
other person, or in connection with the bankruptcy of the electric utility
or any other person. A financing order remains in effect and unabated
notwithstanding the bankruptcy of the electric utility, its successors, or
assignees.
(b) A financing order must include terms ensuring that the
securitization charges authorized under the order are nonbypassable
charges that are payable by all customers and customer classes of the
electric utility, including any customer that:
(1) is participating in:
(A) a net metering program under 170 IAC 4-4.2;
(B) a distributed generation program under IC 8-1-40; or
(C) a feed-in-tariff program;
offered by the electric utility; or
(2) supplies at least part of the customer's own electricity demand.
(c) A financing order must include a mechanism requiring that
securitization charges be reviewed and adjusted by the commission at
least annually. Each year, not earlier than forty-five (45) days before
the anniversary date of the issuance of securitization bonds under the
financing order, and not later than the anniversary date of the issuance
of the securitization bonds, the electric utility shall submit to the
commission an application to do the following:
(1) Correct any overcollections or undercollections of
securitization charges during the twelve (12) months preceding
the date of the filing of the electric utility's application under this
section. For the first annual review under this section, the electric
utility shall correct for any overcollections or undercollections of
securitization charges during those months:
(A) that precede the date of the filing of the electric utility's
application under this section; and
(B) in which securitization charges were collected.
(2) Ensure, through proposed securitization charges, as set forth
by the electric utility in the application, the expected recovery of
amounts sufficient to timely provide all payments of debt service
and other required amounts and charges in connection with the
securitization bonds.
The commission shall review the application, including the electric
utility's proposed securitization charges. The review of the filing must
be limited to determining whether the application contains any
mathematical or clerical errors in the application of the formula-based
mechanism relating to the appropriate amount of any overcollection or
undercollection of the securitization charges and the amount of an
adjustment. If the proposed securitization charges have been
appropriately calculated, the commission shall issue an order approving
the application and the proposed securitization charges not later than
forty-five (45) days after the filing of the application. The commission
shall approve any revisions to securitization charges under this
subsection without conducting an evidentiary hearing. At any time
during a calendar year, an electric utility may, on its own initiative, file
an application with the commission under this section as the electric
utility may determine to be necessary to meet the requirements set forth
in subdivisions (1) and (2). The commission shall review any
application filed by an electric utility outside of the annual review
schedule, including the electric utility's proposed securitization
charges, and if the proposed securitization charges have been
appropriately calculated issue an order approving the application and
the proposed securitization charges not later than forty-five (45) days
after the filing of the application.
(d) A financing order must provide that:
(1) any difference between:
(A) qualified costs approved by the commission in the
financing order; and
(B) the electric utility's qualified costs at the time an electric
generation facility is retired;
shall be accounted for by the electric utility as a regulatory asset
or liability;
(2) 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
(3) the commission may approve recovery of incremental costs
under subdivision (2) if the commission finds the costs just and
reasonable.

Legislative History

As added by P.L.80-2021, SEC.1. Amended by P.L.9-2022, SEC.15.