Indiana 2021 Regular Session Status: Enacted Bipartisan · 6 R · 1 D cosponsors

SB 386 — Cost securitization for electric utility assets.

Last action — Signed by the President of the Senate

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 14, 2021. Enacted.

Prognosis

Likely to advance 98% · high confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 9 sponsors

    4 primary, 5 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (6 R · 1 D) — cross-party backing.

  • Cleared a recorded vote

    Passed 1 recorded vote so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Provides that an electric utility that has certain qualified costs that: (1) are associated with an electric generation facility that will be retired from service within 24 months; and (2) are equal to at least 5% of the electric utility's total electric base rate; may file a petition with the utility regulatory commission (IURC) for a financing order authorizing the securitization of the qualified costs. Provides that an "electric utility", for purposes of the bill, is a public utility that: (1) owns or operates any electric generation facility for the provision of electric utility service to Indiana customers; (2) is under the jurisdiction of the IURC; and (3) has a total of not more than 200,000 retail electric customers. Provides that not later than 240 days after a petition for a financing order is filed, the IURC shall conduct a hearing and issue an order on the petition. Provides that in issuing a financing order for cost securitization, the IURC must find that: (1) the electric utility has proposed a reasonable mechanism to reflect a reduction in the electric utility's base rates and charges upon the assessment of securitization charges on customer bills, so as to remove any qualified costs from the electric utility's base rates; and (2) the mechanism will provide timely rate savings for customers. Provides that in issuing a financing order for cost securitization, the IURC must find that the electric utility will make capital investments in Indiana in an amount equal to or exceeding the amount of the electric utility's qualified costs, over a period of not more than seven years immediately following the issuance date of the securitization bonds. Provides that if the IURC makes the required findings with respect to the petition, the IURC shall issue a financing order that authorizes: (1) the issuance of securitization bonds with a term of not more than 20 years; (2) the collection of securitization charges from the electric utility's customers; and (3) the encumbrance of the resulting securitization property with a lien and security interest. Provides that qualified costs authorized in a financing order shall be allocated to the electric utility's customer classes using the same cost allocation methodology approved by the IURC in the electric utility's most recent base rate case, subject to certain exceptions. Provides that if an electric utility does not cause securitization bonds to be issued not later than 90 days after the date of a final, non-appealable financing order, the electric utility shall file a statement of abandonment with the IURC stating the reasons for the abandonment. Provides that a financing order issued by the IURC under these provisions must include a mechanism: (1) requiring that securitization charges be reviewed and adjusted by the IURC at least annually; and (2) allowing an electric utility, on its own initiative, to apply to the IURC at any time during a calendar year for an adjustment of its securitization charges, as the electric utility determines to be necessary; to correct any over collections or under collections of securitization charges, and to ensure the recovery of amounts sufficient to timely make all payments of debt service in connection with the securitization bonds. Sets forth provisions concerning the encumbrance of securitization property with a lien and security interest, including provisions concerning: (1) the attachment and perfection; and (2) the priority; of a security interest in securitization property. Specifies that securitization bonds are not: (1) a debt or obligation of the state; or (2) a charge on the state's full faith and credit or on the state's taxing power. Pledges that the state will not: (1) take or permit any action that would impair the value of securitization property; or (2) reduce, alter, or impair related securitization charges; until certain obligations in connection with the related securitization bonds have been paid or performed in full. Requires the IURC to adopt rules to implement these provisions. Urges the legislative council to assign to the interim study committee on energy, utilities, and telecommunications (committee) the task of studying during the 2022 legislative interim: (1) the implementation; and (2) use by electric utilities; of the bill's provisions concerning the securitization of costs for retired electric utility assets. Provides that if the committee is assigned to study this topic, the committee: (1) shall consider available data and other information concerning participating electric utilities to which the IURC has issued a financing order under the bill's provisions; (2) may request this data and information from certain parties; and (3) shall, not later than November 1, 2022, submit to the legislative council a report setting forth the committee's findings and recommendations, including the committee's recommendations as to whether to allow, under the bill's provisions, additional electricity suppliers to securitize costs associated with retired electric utility assets.

Bill Text

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Read SB 386 on the official Indiana source →

Action History

  1. Signed by the President of the Senate

  2. Public Law 80

  3. Signed by the Governor

  4. Signed by the Speaker

  5. Signed by the President Pro Tempore

  6. Senate concurred in House amendments; Roll Call 324: yeas 48, nays 0

  7. Motion to concur filed

  8. Representatives Manning and Jeter C added as cosponsors

  9. Returned to the Senate with amendments

  10. Third reading: passed; Roll Call 317: yeas 93, nays 0

  11. Second reading: ordered engrossed

  12. Committee report: amend do pass, adopted

  13. First reading: referred to Committee on Utilities, Energy and Telecommunications

  14. Referred to the House

  15. Senator Perfect added as coauthor

  16. Senator Baldwin added as coauthor

  17. Senator Doriot added as coauthor

  18. Senator Niezgodski added as third author

  19. Senator Zay added as second author

  20. House sponsor: Representative Soliday

  21. Third reading: passed; Roll Call 115: yeas 39, nays 6

  22. Second reading: amended, ordered engrossed

  23. Amendment #3 (Breaux) failed; voice vote

  24. Amendment #2 (Breaux) failed; voice vote

  25. Amendment #1 (Koch) prevailed; voice vote

  26. Committee report: amend do pass, adopted

  27. First reading: referred to Committee on Utilities

  28. Authored by Senator Koch

Sponsors

Sponsorship breakdown

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4 sponsors · 5 co-sponsors · 141 not signed on

Sponsors (4)

Co-sponsors (5)

Not signed on (141)

141 members have not signed on to this bill.

Show all 141 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

SB 386 - Soliday - 3rd Reading

Passed 93 Yea · 0 Nay · 6 Other
Party YeaNayPresentNot Voting
Republican 42002
Unaffiliated 29002
Democrat 22002
Total 93006
% of votes cast 94%0%0%6%
How each member voted (99)
Member Party Vote
Lehe — Yea
Saunders — Yea
Austin — Yea
Fleming — Yea
Leonard — Yea
Schaibley — Yea
Frye — Yea
Lyness — Yea
Goodrich — Yea
Smith, V — Yea
Gutwein — Yea
Miller — Yea
Speedy — Yea
Hatfield — Yea
Boy — Yea
Morrison — Yea
Negele — Yea
Jacob — Yea
Nisly — Yea
Torr — Yea
Cherry — Yea
Vermilion — Yea
Cook — Yea
Zent — Yea
Ziemke — Yea
Eberhart — Yea
Ellington — Yea
Davisson — Not Voting
Mr. Speaker — Not Voting
Brown, T — Yea
Young, J — Yea
Blake Johnson Democrat Yea
Carey Hamilton Democrat Yea
Carolyn Jackson Democrat Yea
Cherrish Pryor Democrat Yea
Chris Campbell Democrat Yea
Chuck Moseley Democrat Not Voting
Earl Harris Democrat Not Voting
Edward DeLaney Democrat Yea
Gregory Porter Democrat Yea
John Bartlett Democrat Yea
Justin Moed Democrat Yea
Matt Pierce Democrat Yea
Maureen Bauer Democrat Yea
Mike Andrade Democrat Yea
Mitch Gore Democrat Yea
Philip GiaQuinta Democrat Yea
Ragen Hatcher Democrat Yea
Renee Pack Democrat Yea
Robin Shackleford Democrat Yea
Ryan Dvorak Democrat Yea
Sheila Klinker Democrat Yea
Sue Errington Democrat Yea
Tonya Pfaff Democrat Yea
Vanessa Summers Democrat Yea
Beau Baird Republican Yea
Ben Smaltz Republican Yea
Brad Barrett Republican Yea
Bruce Borders Republican Yea
Chris Jeter Republican Yea
Chris Judy Republican Yea
Chris May Republican Yea
Cindy Ledbetter Republican Yea
Craig Snow Republican Yea
Dale DeVon Republican Yea
Dave Heine Republican Yea
David Abbott Republican Yea
Edmond Soliday Republican Yea
Edward Clere Republican Yea
Elizabeth Rowray Republican Yea
Ethan Manning Republican Yea
Gregory Steuerwald Republican Yea
Harold Slager Republican Yea
Heath VanNatter Republican Yea
J.D. Prescott Republican Yea
Jack Jordan Republican Yea
Jake Teshka Republican Yea
Jeffrey Thompson Republican Yea
Jim Lucas Republican Not Voting
Jim Pressel Republican Yea
Joanna King Republican Yea
Julie Olthoff Republican Yea
Karen Engleman Republican Yea
Martin Carbaugh Republican Yea
Matt Hostettler Republican Not Voting
Matt Lehman Republican Yea
Michael Karickhoff Republican Yea
Michelle Davis Republican Yea
Mike Aylesworth Republican Yea
Peggy Mayfield Republican Yea
Robert Behning Republican Yea
Robert Heaton Republican Yea
Robert Morris Republican Yea
Ryan Lauer Republican Yea
Shane Lindauer Republican Yea
Steve Bartels Republican Yea
Timothy Wesco Republican Yea
Wendy McNamara Republican Yea
Zach Payne Republican Yea

Official roll call →

Subjects

public-safety finance energy
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Frequently asked questions

What does SB 386 do?
Provides that an electric utility that has certain qualified costs that: (1) are associated with an electric generation facility that will be retired from service within 24 months; and (2) are equal to at least 5% of the electric utility's total electric base rate; may file a petition with the utility regulatory commission (IURC) for a financing order authorizing the securitization of the qualified costs. Provides that an "electric utility", for purposes of the bill, is a public utility that: (1) owns or operates any electric generation facility for the provision of electric utility service to Indiana customers; (2) is under the jurisdiction of the IURC; and (3) has a total of not more than 200,000 retail electric customers. Provides that not later than 240 days after a petition for a financing order is filed, the IURC shall conduct a hearing and issue an order on the petition. Provides that in issuing a financing order for cost securitization, the IURC must find that: (1) the electric utility has proposed a reasonable mechanism to reflect a reduction in the electric utility's base rates and charges upon the assessment of securitization charges on customer bills, so as to remove any qualified costs from the electric utility's base rates; and (2) the mechanism will provide timely rate savings for customers. Provides that in issuing a financing order for cost securitization, the IURC must find that the electric utility will make capital investments in Indiana in an amount equal to or exceeding the amount of the electric utility's qualified costs, over a period of not more than seven years immediately following the issuance date of the securitization bonds. Provides that if the IURC makes the required findings with respect to the petition, the IURC shall issue a financing order that authorizes: (1) the issuance of securitization bonds with a term of not more than 20 years; (2) the collection of securitization charges from the electric utility's customers; and (3) the encumbrance of the resulting securitization property with a lien and security interest. Provides that qualified costs authorized in a financing order shall be allocated to the electric utility's customer classes using the same cost allocation methodology approved by the IURC in the electric utility's most recent base rate case, subject to certain exceptions. Provides that if an electric utility does not cause securitization bonds to be issued not later than 90 days after the date of a final, non-appealable financing order, the electric utility shall file a statement of abandonment with the IURC stating the reasons for the abandonment. Provides that a financing order issued by the IURC under these provisions must include a mechanism: (1) requiring that securitization charges be reviewed and adjusted by the IURC at least annually; and (2) allowing an electric utility, on its own initiative, to apply to the IURC at any time during a calendar year for an adjustment of its securitization charges, as the electric utility determines to be necessary; to correct any over collections or under collections of securitization charges, and to ensure the recovery of amounts sufficient to timely make all payments of debt service in connection with the securitization bonds. Sets forth provisions concerning the encumbrance of securitization property with a lien and security interest, including provisions concerning: (1) the attachment and perfection; and (2) the priority; of a security interest in securitization property. Specifies that securitization bonds are not: (1) a debt or obligation of the state; or (2) a charge on the state's full faith and credit or on the state's taxing power. Pledges that the state will not: (1) take or permit any action that would impair the value of securitization property; or (2) reduce, alter, or impair related securitization charges; until certain obligations in connection with the related securitization bonds have been paid or performed in full. Requires the IURC to adopt rules to implement these provisions. Urges the legislative council to assign to the interim study committee on energy, utilities, and telecommunications (committee) the task of studying during the 2022 legislative interim: (1) the implementation; and (2) use by electric utilities; of the bill's provisions concerning the securitization of costs for retired electric utility assets. Provides that if the committee is assigned to study this topic, the committee: (1) shall consider available data and other information concerning participating electric utilities to which the IURC has issued a financing order under the bill's provisions; (2) may request this data and information from certain parties; and (3) shall, not later than November 1, 2022, submit to the legislative council a report setting forth the committee's findings and recommendations, including the committee's recommendations as to whether to allow, under the bill's provisions, additional electricity suppliers to securitize costs associated with retired electric utility assets.
Who sponsors SB 386?
SB 386 is sponsored by Eric Koch (Republican), Andy Zay, David Niezgodski (Democrat), Blake Doriot (Republican), Scott Baldwin (Republican), Chip Perfect, Edmond Soliday (Republican), Ethan Manning (Republican), and Chris Jeter (Republican).
What is the current status of SB 386?
This bill has been enacted into law. Introduced January 14, 2021. Enacted.
Where can I track SB 386?
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