§ 8-1-8.8-12 — Recovery of costs; rate adjustment mechanisms

Indiana § 8-1-8.8-12

• Jurisdiction: Indiana
• Art. 1: UTILITIES GENERALLY
• Ch. 8.8: Utility Generation and Clean Coal Technology

Text

(a) The commission shall provide financial
incentives to eligible businesses for:
(1) new energy production or generating facilities; and
(2) nuclear energy production or generating facilities;
in the form of timely recovery of the costs incurred in connection with
the study, analysis, development, siting, design, licensing, permitting,
construction, repowering, expansion, life cycle management, operation,
or maintenance of the facilities.
(b) An eligible business seeking authority to timely recover the costs
described in subsection (a) must apply to the commission for approval
of a rate adjustment mechanism in the manner determined by the
commission.
(c) An application must include the following:
(1) A schedule for the completion of construction, repowering,
life cycle management, or expansion of the facility for which rate
relief is sought.
(2) Copies of the most recent integrated resource plan filed with
the commission, if applicable.
(3) The amount of capital investment by the eligible business in
the facility.
(4) Other information the commission considers necessary.
(d) The commission shall allow an eligible business to recover:
(1) the costs associated with qualified utility system property; and
(2) qualified utility system expenses;
if the eligible business provides substantial documentation that the
expected costs and expenses and the schedule for incurring those costs
and expenses are reasonable and necessary.
(e) The commission shall allow an eligible business to recover the
costs associated with the purchase of fuels or energy produced by a
coal gasification facility or by a nuclear energy production or
generating facility if the eligible business provides substantial
documentation that the costs associated with the purchase are
reasonable and necessary.
(f) A retail rate adjustment mechanism proposed by an eligible
business under this section may be based on actual or forecasted data.
If forecast data is used, the retail rate adjustment mechanism must
contain a reconciliation mechanism to correct for any variance between
the forecasted costs and the actual costs.

Legislative History

As added by P.L.159-2002, SEC.6. Amended by P.L.175-2007, SEC.19; P.L.150-2011, SEC.12.