§ 8-1-8.4-7 — Application for certificate of public convenience and necessity; public hearing; conditions for approval; recovery of costs

Indiana § 8-1-8.4-7

• Jurisdiction: Indiana
• Art. 1: UTILITIES GENERALLY
• Ch. 8.4: Federally Mandated Requirements for Energy Utilities

Text

(a) As a condition for receiving the certificate
required under section 6 of this chapter, an energy utility must file with
the commission an application that sets forth the information described
in section 6(b) of this chapter, supported with technical information in
as much detail as the commission requires. An application under this
section must be filed either:
(1) before; or
(2) within a reasonable time with respect to;
any federally mandated compliance date.
(b) The commission shall hold a properly noticed public hearing on
each application and grant a certificate only if the commission has:
(1) made a finding that the public convenience and necessity will
be served by the compliance project;
(2) approved the incurred and projected federally mandated costs
associated with the compliance project; and
(3) made a finding on each of the factors set forth in section 6(b)
of this chapter.
(c) If the commission approves under subsection (b) a compliance
project and the federally mandated costs associated with the
compliance project, the following apply:
(1) Eighty percent (80%) of the approved federally mandated
costs shall be recovered by the energy utility through a periodic
retail rate adjustment mechanism that allows the timely recovery
of the approved federally mandated costs. The commission shall
adjust the energy utility's authorized net operating income to
reflect any approved earnings for purposes of IC 8-1-2-42(d)(3)
and IC 8-1-2-42(g)(3), with recovery commencing no earlier than:
(A) the date of a final agency action regarding the federally
mandated requirement; or
(B) in the absence of a final agency action, the date on which
the federally mandated requirement becomes effective.
(2) Twenty percent (20%) of the approved federally mandated
costs, including depreciation, allowance for funds used during
construction, and post in service carrying costs, based on the
overall cost of capital most recently approved by the commission,
shall be deferred and recovered by the energy utility as part of the
next general rate case filed by the energy utility with the
commission.
(3) Actual costs that exceed the projected federally mandated
costs of the approved compliance project by more than
twenty-five percent (25%) shall require specific justification by
the energy utility and specific approval by the commission before
being authorized in the next general rate case filed by the energy
utility with the commission.

Legislative History

As added by P.L.150-2011, SEC.1. Amended by P.L.2-2023, SEC.5; P.L.81-2023, SEC.3; P.L.170-2023, SEC.5.