Bill > SB0517

Introduced Session

Purchase of coal fired generation facilities. Provides that: (1) a public utility that provides electric utility service in Indiana (public utility) may not enter into an agreement to sell a coal fired electric generation facility (coal facility) that the public utility plans to retire unless the Indiana utility regulatory commission (IURC) approves the agreement; and (2) a person that purchases from a public utility, under an agreement approved by the IURC, a coal facility that the public utility plans to retire is not a public utility for purposes of IURC jurisdiction solely by reason of the person's operation of the coal facility. Provides that the rates and charges of a public utility, other than a cooperatively owned public utility, may not include any recovery of, or earnings on, the capital costs associated with the construction of an electric generation facility that is built, in whole or in part, to replace the electricity generated from a coal facility retired by the public utility after December 31, 2028, unless the IURC determines that the public utility: (1) made a good faith effort to sell the coal facility to another person; and (2) either: (A) accepted a reasonable offer to purchase the coal facility; or (B) was not able to sell the coal facility for a reason beyond the public utility's reasonable control. Sets forth factors the IURC must consider in determining whether: (1) the public utility made a good faith effort to sell the coal facility; and (2) an offer to purchase a coal facility was reasonable. Provides that the IURC may preapprove a procedure for a public utility's solicitation and review of offers for purchase of a coal facility the public utility plans to retire that, if used by a public utility to sell the coal facility, satisfies the requirements for: (1) a good faith effort to sell the coal facility; and (2) acceptance of a reasonable offer for the coal facility. Provides that, subject to certain conditions, the IURC shall require a public utility, other than a cooperatively owned public utility, to purchase electricity generated by a coal facility that: (1) was acquired from a public utility through an agreement approved by the IURC; and (2) but for the sale of the coal facility, would have been retired by the public utility. Provides that prior to the proposed retirement date for a coal facility, the IURC may determine the avoided cost and other terms and conditions for the purchase of electricity from the coal facility in order to allow potential purchasers of the coal facility to know this information before entering into an agreement to purchase the coal facility.

Committee Categories

Brian Buchanan (R)*,  Greg Goode (R)*,  Jean Leising (R)*, 

First reading: referred to Committee on Utilities (on 01/16/2025)

Official Document