summary
Introduced
01/08/2026
01/08/2026
In Committee
01/08/2026
01/08/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Base rate cases for electricity suppliers. Provides that in a base rate proceeding that is filed with or pending before the Indiana utility regulatory commission (IURC) after December 31, 2025, for an increase in an electricity supplier's basic rates and charges, the IURC shall do the following: (1) Consider whether the requested increase would result, upon full implementation, in an average monthly residential bill that would represent more than 6% of a representative low income customer's monthly income. (2) Consider and compare the following: (A) The total amount of the electricity supplier's actual return that was distributed to shareholders in the form of dividends, or reinvested by the electricity supplier in its own stock, during the period extending back to the IURC's last order approving the electricity supplier's basic rates and charges (relevant period). (B) The sum of the total amount of the electricity supplier's actual return for the relevant period that was invested in infrastructure or improvements to the electricity supplier's system, plus the amount of capital investments that are associated with a set of discrete and identifiable capital spending projects that will be placed in service within a reasonable time after the end of the electricity supplier's 12 month test period in the proceeding. (3) Hold at least two public hearings in the electricity supplier's service area. Provides that in the IURC's final order in the proceeding, the IURC shall include: (1) the IURC's findings with respect to the considerations required under the bill; and (2) a discussion of how the IURC took those findings into account in reaching the decisions set forth in the order.
AI Summary
This bill, effective January 1, 2026, requires the Indiana Utility Regulatory Commission (IURC) to consider specific factors when reviewing requests from electricity suppliers for increases in their basic rates and charges, a process known as a base rate case. For any such case filed or pending after December 31, 2025, the IURC must assess whether the proposed rate increase would cause a representative low-income customer's average monthly electricity bill to exceed 6% of their monthly income, ensuring affordability. Additionally, the IURC must compare the electricity supplier's shareholder returns (dividends and stock reinvestment) during a defined "relevant period" (since the last rate approval) against the amount invested in infrastructure improvements and identifiable future capital projects that have not yet been recovered through rates. The bill also mandates that at least two public hearings be held within the electricity supplier's service area for these proceedings, and the IURC's final decision must include its findings on these affordability and investment considerations and explain how they influenced the outcome. This legislation amends existing law to ensure these new requirements are integrated into the rate-setting process.
Committee Categories
Transportation and Infrastructure
Sponsors (1)
Last Action
First reading: referred to Committee on Utilities (on 01/08/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://iga.in.gov/legislative/2026/bills/senate/266/details |
| BillText | https://iga.in.gov/pdf-documents/124/2026/senate/bills/SB0266/SB0266.01.INTR.pdf |
| Fiscal Note #1: Introduced | https://iga.in.gov/pdf-documents/124/2026/senate/bills/SB0266/fiscal-notes/SB0266.01.INTR.FN001.pdf |
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