2013 Indiana Code TITLE 8. UTILITIES AND TRANSPORTATION ARTICLE 1. UTILITIES GENERALLY CHAPTER 37. VOLUNTARY CLEAN ENERGY PORTFOLIO STANDARD PROGRAM
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IC 8-1-37
Chapter 37. Voluntary Clean Energy Portfolio Standard
Program
IC 8-1-37-1
"Base year"
Sec. 1. As used in this chapter, "base year" means the calendar
year ending December 31, 2010.
As added by P.L.150-2011, SEC.16.
IC 8-1-37-2
"Clean energy"
Sec. 2. As used in this chapter, "clean energy" means electricity
that is produced from a clean energy resource.
As added by P.L.150-2011, SEC.16.
IC 8-1-37-3
"Clean energy credit"
Sec. 3. As used in this chapter, "clean energy credit", or "CEC",
means an interest that:
(1) represents one (1) megawatt hour of clean energy that
satisfies the condition set forth in section 12(c)(2) of this
chapter;
(2) is quantifiable and transferrable; and
(3) is possessed by not more than one (1) entity at a time.
As added by P.L.150-2011, SEC.16.
IC 8-1-37-4
"Clean energy resource"
Sec. 4. (a) As used in this chapter, "clean energy resource" means
any of the following sources, clean sources, alternative technologies,
or programs used in connection with the production or conservation
of electricity:
(1) Energy from wind.
(2) Solar energy.
(3) Photovoltaic cells and panels.
(4) Dedicated crops grown for energy production.
(5) Organic waste biomass, including any of the following
organic matter that is available on a renewable basis:
(A) Agricultural crops.
(B) Agricultural wastes and residues.
(C) Wood and wood wastes, including the following:
(i) Wood residues.
(ii) Forest thinnings.
(iii) Mill residue wood.
(D) Animal wastes.
(E) Animal byproducts.
(F) Aquatic plants.
(G) Algae.
(6) Hydropower.
(7) Fuel cells.
(8) Hydrogen.
(9) Energy from waste to energy facilities, including energy
derived from advanced solid waste conversion technologies.
(10) Energy storage systems or technologies.
(11) Geothermal energy.
(12) Coal bed methane.
(13) Industrial byproduct technologies that use fuel or energy
that is a byproduct of an industrial process.
(14) Waste heat recovery from capturing and reusing the waste
heat in industrial processes for heating or for generating
mechanical or electrical work.
(15) A source, technology, or program approved by the
commission and designated as a clean energy resource by a rule
adopted by the commission under IC 4-22-2.
(16) Demand side management or energy efficiency initiatives
that:
(A) reduce electricity consumption; or
(B) implement load management, demand response, or
energy efficiency measures designed to shift customers'
electric loads from periods of higher demand to periods of
lower demand;
as a result of equipment installed, or customers enrolled, after
January 1, 2010.
(17) A clean energy project described in IC 8-1-8.8-2(1).
(18) Nuclear energy.
(19) Electricity that is:
(A) generated by a customer owned distributed generation
facility that is interconnected to the electricity supplier's
distribution system in accordance with the commission's
interconnection standards set forth in 170 IAC 4-4.3; and
(B) supplied back to the electricity supplier for use in
meeting the electricity supplier's electricity demand
requirements in accordance with the commission's net
metering rules set forth in 170 IAC 4-4.2.
(20) Combined heat and power systems.
(21) Electricity that is generated from natural gas at a facility
constructed in Indiana after July 1, 2011, which displaces
electricity generation from an existing coal fired generation
facility.
(b) Except for energy described in subsection (a)(9), the term does
not include energy from the incineration, burning, or heating of any
of the following:
(1) Tires.
(2) General household, institutional, commercial, industrial,
lunchroom, office, or landscape waste.
(c) The term excludes treated or painted lumber.
As added by P.L.150-2011, SEC.16.
IC 8-1-37-5
"Clean portfolio standard goal"
Sec. 5. As used in this chapter, "clean portfolio standard goal", or
"CPS goal", refers to a goal set forth in section 12(a) of this chapter
that a participating electricity supplier must achieve during a
specified period during the program to qualify for one (1) or more of
the financial incentives described in section 13 of this chapter.
As added by P.L.150-2011, SEC.16.
IC 8-1-37-6
"Electricity supplier"
Sec. 6. (a) As used in this chapter, "electricity supplier" means a
public utility (as defined in IC 8-1-2-1) that furnishes retail electric
service to customers in Indiana on January 1, 2011.
(b) The term does not include a utility that is:
(1) a municipally owned utility (as defined in IC 8-1-2-1(h));
(2) a corporation organized under IC 8-1-13; or
(3) a corporation organized under IC 23-17 that is an electric
cooperative and that has at least one (1) member that is a
corporation organized under IC 8-1-13.
As added by P.L.150-2011, SEC.16.
IC 8-1-37-7
"Participating electricity supplier"
Sec. 7. As used in this chapter, "participating electricity supplier"
refers to an electricity supplier that has been approved by the
commission under section 11 of this chapter to participate in the
program.
As added by P.L.150-2011, SEC.16.
IC 8-1-37-8
"Program"
Sec. 8. As used in this chapter, "program" refers to the Indiana
voluntary clean energy portfolio standard program established by the
commission under section 10 of this chapter.
As added by P.L.150-2011, SEC.16.
IC 8-1-37-9
"Regional transmission organization"
Sec. 9. As used in this chapter, "regional transmission
organization", with respect to an electricity supplier, refers to the
regional transmission organization approved by the Federal Energy
Regulatory Commission for the control area that includes the
electricity supplier's assigned service area (as defined in
IC 8-1-2.3-2).
As added by P.L.150-2011, SEC.16.
IC 8-1-37-10
Adoption of rules establishing program
Sec. 10. (a) Subject to subsection (d), the commission shall adopt
rules under IC 4-22-2 to establish the Indiana voluntary clean energy
portfolio standard program. The program established under this
section must be a voluntary program that provides incentives to
participating electricity suppliers that undertake to supply specified
percentages of the total electricity supplied to their Indiana retail
electric customers from clean energy.
(b) The rules adopted by the commission under this section to
establish the program must:
(1) incorporate:
(A) the CPS goals set forth in section 12(a) of this chapter;
(B) methods for measuring and evaluating a participating
electricity supplier's compliance with the CPS goals set forth
in section 12(a) of this chapter;
(C) the financial incentives and periodic rate adjustment
mechanisms set forth in section 13 of this chapter; and
(D) the reporting requirements set forth in section 14 of this
chapter;
(2) require the commission to determine, before approving an
application under section 11 of this chapter, that the approval of
the application will not result in an increase to the retail rates
and charges of the electricity supplier above what could
reasonably be expected if the application were not approved;
(3) take effect not later than January 1, 2012; and
(4) be consistent with this chapter.
(c) Upon the effective date of the rules adopted by the
commission under this section, an electricity supplier may apply to
the commission under section 11 of this chapter for approval to
participate in the program.
(d) The commission may adopt emergency rules under
IC 4-22-2-37.1 to adopt the rules required by this section. An
emergency rule adopted by the commission under IC 4-22-2-37.1
expires on the date a rule that supersedes the emergency rule is
adopted by the commission under IC 4-22-2-24 through
IC 4-22-2-36.
As added by P.L.150-2011, SEC.16.
IC 8-1-37-11
Application to program; review by the commission
Sec. 11. (a) An electricity supplier that seeks to participate in the
program established by the commission under section 10 of this
chapter must apply to the commission:
(1) in the manner and on a form prescribed by the commission;
and
(2) not later than a date specified by the commission in the rules
adopted under section 10 of this chapter;
for approval to participate in the program.
(b) Upon receiving an application under subsection (a), the
commission shall review the application for completeness. The
commission may request additional information the commission
considers necessary to aid in the commission's review.
(c) If the commission determines that:
(1) an application submitted under subsection (a) is complete
and reasonably complies with the purpose of this chapter;
(2) the electricity supplier submitting the application has
demonstrated that the electricity supplier has a reasonable
expectation of obtaining clean energy to meet the energy
requirements of its Indiana retail electric customers during the
calendar year ending December 31, 2025, in an amount equal to
at least ten percent (10%) of the total electricity supplied by the
participating electricity supplier to its Indiana retail electric
customers during the base year, as set forth in section 12(a)(3)
of this chapter; and
(3) approving the application will not result in an increase to the
retail rates and charges of the electricity supplier above what
could reasonably be expected if the application were not
approved;
the commission shall approve the application. If, however, the
commission determines that the application does not meet the
requirements set forth in this subsection, the commission shall reject
the application. The electricity supplier that submitted the
application under subsection (a) bears the burden of proving to the
commission that the application meets the requirements set forth in
this subsection.
As added by P.L.150-2011, SEC.16.
IC 8-1-37-12
Qualifications for shareholder financial incentive; application;
considerations and determination by commission
Sec. 12. (a) Subject to subsection (c), to qualify for the financial
incentives set forth in section 13 of this chapter, a participating
electricity supplier must obtain clean energy to meet the energy
requirements of the participating electricity supplier's Indiana retail
electric customers according to the following CPS goals:
(1) CPS Goal Period I: For the six (6) calendar years beginning
January 1, 2013, and ending December 31, 2018, an average of
at least four percent (4%) of the total electricity obtained by the
participating electricity supplier to meet the energy
requirements of its Indiana retail electric customers during the
base year.
(2) CPS Goal Period II: For the six (6) calendar years beginning
January 1, 2019, and ending December 31, 2024, an average of
at least seven percent (7%) of the total electricity obtained by
the participating electricity supplier to meet the energy
requirements of its Indiana retail electric customers during the
base year.
(3) CPS Goal Period III: In the calendar year ending December
31, 2025, at least ten percent (10%) of the total electricity
obtained by the participating electricity supplier to meet the
energy requirements of its Indiana retail electric customers
during the base year.
(b) For purposes of subsection (a), electricity is measured in
megawatt hours. However, in determining whether a participating
electricity supplier has met a CPS goal set forth in subsection (a), the
commission shall require that at least fifty percent (50%) of the
megawatt hours of clean energy obtained by the participating
electricity supplier to meet the energy requirements of its Indiana
retail electric customers during the CPS goal period under
consideration must originate from clean energy resources located in
Indiana.
(c) In determining whether a participating electricity supplier has
met a particular CPS goal set forth in subsection (a), the commission
shall consider only clean energy that:
(1) except as provided in subsection (f), is obtained by the
participating electricity supplier to meet the energy
requirements of the participating electricity supplier's Indiana
retail electric customers during the CPS goal period under
consideration; and
(2) is generated by a facility located in a control area that is part
of a regional transmission organization of which an electricity
supplier is a member.
(d) An electricity supplier is not required to obtain clean energy
to meet a particular CPS goal if the commission determines that the
cost of clean energy resources available to the electricity supplier
would result in an increase in the rates and charges of the electricity
supplier that would not be just and reasonable.
(e) A participating electricity supplier may own or purchase one
(1) or more CECs to meet any of the CPS goals set forth in
subsection (a) as long as the clean energy represented by the CEC
meets the condition set forth in subsection (c)(2).
(f) A participating electricity supplier may apply:
(1) amounts of clean energy supplied by the participating
electricity supplier to its Indiana retail electric customers during
a particular CPS goal period; or
(2) CECs acquired by the participating electricity supplier
during a particular CPS goal period;
that exceed the requirements for the particular CPS goal period to the
immediately succeeding CPS goal period.
(g) A participating electricity supplier may use a clean energy
resource described in section 4(a)(17) through 4(a)(21) of this
chapter to satisfy not more than thirty percent (30%) of any of the
CPS goals set forth in subsection (a).
As added by P.L.150-2011, SEC.16.
IC 8-1-37-13
Shareholder financial incentive; duties of the commission upon
approval; application; determination; force and effect of incentive;
force and effect of periodic rate adjustment mechanism
Sec. 13. (a) The commission may establish a shareholder
incentive consisting of the authorization of an increased overall rate
of return on equity, not to exceed fifty (50) basis points over a
participating electricity supplier's authorized rate of return, whenever
the participating electricity supplier attains a CPS goal set forth in
section 12(a) of this chapter. The number of additional basis points
authorized by the commission under this subsection may:
(1) be different for each of the CPS goal periods identified in
section 12(a) of this chapter, as the commission determines is
appropriate; and
(2) in the case of a particular participating electricity supplier,
be based on the extent to which the participating electricity
supplier met a particular CPS goal using clean energy resources
listed in section 4(a)(1) through 4(a)(16) of this chapter.
The additional basis points authorized by the commission under this
subsection for each CPS goal period are not cumulative and may not
be authorized for a clean energy resource for which the commission
has authorized an incentive under IC 8-1-8.8-11(a)(2). In determining
a participating electricity supplier's authorized rate of return to which
additional basis points may be added upon the participating
electricity supplier's achievement of a particular CPS goal, the
commission shall not include as part of the authorized rate of return
any additional basis points awarded to the participating electricity
supplier for having achieved the immediately preceding CPS goal.
(b) If the commission approves an electricity supplier's application
under section 11(c) of this chapter, the commission shall authorize
the incentive described in subsection (a) and the recovery of costs,
by means of a periodic rate adjustment mechanism, as described in
subsection (c), based on the following considerations:
(1) The sharing of achieved savings or as a percentage of costs.
(2) Avoided costs resulting from achieving demand side
management or energy efficiency targets.
(3) The recovery of lost revenues associated with
implementation of demand side management or energy
efficiency initiatives.
(4) The designation of electricity produced or conserved by a
clean energy resource as an energy savings for purposes of any
initiative, rule, or order approved by the commission to promote
the efficient use and production of electricity, including
initiatives to implement demand side management, energy
efficiency, or conservation measures in accordance with
commission rules.
(c) If the commission approved an electricity supplier's
application under section 11(c) of this chapter, the commission shall
permit the recovery, by means of a periodic rate adjustment
mechanism, of all just, reasonable, and necessary program costs
incurred by a participating electricity supplier in:
(1) constructing, operating, or maintaining facilities that
generate clean energy that:
(A) is used by the participating electricity supplier in its
efforts to meet a CPS goal set forth in section 12(a) of this
chapter; and
(B) meets the requirements set forth in section 12(c) of this
chapter; or
(2) otherwise generating or purchasing clean energy that is used
by the participating electricity supplier in its efforts to meet a
CPS goal set forth in section 12(a) of this chapter.
For purposes of this subsection and subsection (h)(1), "program
costs" includes administrative costs, ancillary costs, capacity costs,
costs associated with CECs, capital costs, depreciation costs, tax
costs, and financing costs incurred in connection with an activity
described in subdivision (1) or (2).
(d) A participating electricity supplier that seeks an incentive
established by the commission under subsection (a) or a periodic rate
adjustment mechanism established by the commission under
subsection (c) must apply to the commission:
(1) in the manner and on a form prescribed by the commission;
and
(2) not later than any dates specified by the commission in rules
adopted under section 10 of this chapter;
for approval for the incentive or periodic rate adjustment mechanism
sought.
(e) The commission shall review an application filed under this
section for completeness. The commission may request additional
information the commission considers necessary to aid in the
commission's review.
(f) The commission shall, after notice and hearing, issue a
determination of a participating electricity supplier's eligibility for
the financial incentive or periodic rate adjustment mechanism sought.
The commission shall issue a determination under this subsection not
later than one hundred twenty (120) days after the date of the
application, unless the commission finds that the applicant has not
cooperated fully in the proceeding.
(g) Subject to the participating electricity supplier's continuing
compliance with the applicable CPS goal, as determined according
to the measurement and evaluation procedures described in section
10(b)(1)(B) of this chapter, a shareholder incentive described in
subsection (a) continues in effect until the earlier of the following:
(1) A time or upon an event specified in the commission's order
approving the shareholder incentive.
(2) The commission issues a new order authorizing the
participating electricity supplier to receive a shareholder
incentive for meeting the next CPS program goal.
(h) Subject to the participating electricity supplier's continuing
compliance with the applicable CPS goal, as determined according
to the measurement and evaluation procedures described in section
10(b)(1)(B) of this chapter, a periodic rate adjustment mechanism
described in subsection (c) continues in effect until the earlier of the
following:
(1) The participating electricity supplier has recovered the
program costs for which the periodic rate adjustment
mechanism was allowed.
(2) A time or upon an event specified in the commission's order
approving the periodic rate adjustment mechanism.
As added by P.L.150-2011, SEC.16.
IC 8-1-37-14
Annual report to commission required; content requirements;
force and effect of duty to report; commission's annual report
Sec. 14. (a) Beginning in 2014, each participating electricity
supplier shall report to the commission not later than March 1 of
each year on the following:
(1) The participating electricity supplier's efforts, if any, during
the most recently ended calendar year to meet the CPS goal
applicable to the most recently ended calendar year.
(2) The total amount of renewable energy supplied to the
participating electricity supplier's Indiana retail electric
customers during the most recently ended calendar year,
including a breakdown of the following:
(A) The amount of clean energy generated by facilities
owned or operated by the participating electricity supplier.
The participating electricity supplier shall identify each
facility by:
(i) name and location;
(ii) total generating capacity;
(iii) total amount of electricity generated at the facility
during the most recently ended calendar year, including
the percentage of this amount that was supplied to the
participating electricity supplier's Indiana retail electric
customers; and
(iv) total amount of clean energy generated at the facility
during the most recently ended calendar year, including
the percentage of this amount that was supplied to the
participating electricity supplier's Indiana retail electric
customers.
(B) The amount of clean energy purchased from other
suppliers of clean energy. The participating electricity
supplier shall identify:
(i) each supplier from whom clean energy was purchased;
(ii) the amount of clean energy purchased from each
supplier;
(iii) the price paid by the participating electricity supplier
for the clean energy purchased from each supplier; and
(iv) to the extent known, the name and location of each
facility at which the clean energy purchased from each
supplier was generated.
(3) The number of CECs purchased by the participating
electricity supplier during the most recently ended calendar
year. The participating electricity supplier shall identify:
(A) each person from whom one (1) or more CECs was
purchased;
(B) the price paid to each person identified in clause (A) for
the CECs purchased;
(C) the number of CECs applied, if any, during the most
recently ended calendar year to meet the CPS goal
applicable to the most recently ended calendar year; and
(D) the number of CECs, if any, that the participating
electricity supplier plans to carry over to the next succeeding
CPS goal period, as permitted by section 12(f) of this
chapter.
(4) The participating electricity supplier's plans for meeting the
CPS goal applicable to the calendar year in which the report is
submitted.
(5) Advances in clean energy technology that affect activities
described in subdivisions (1) and (4).
(6) Any other information that the commission prescribes in
rules adopted under IC 4-22-2.
For purposes of this subsection, amounts of clean energy and
electricity shall be reported in megawatt hours. A participating
electricity supplier's duty to submit a report under this subsection
terminates after the participating electricity supplier has submitted
the report that applies to the calendar year ending December 31,
2025.
(b) Beginning in 2014, the commission's annual report to the
regulatory flexibility committee under IC 8-1-2.5-9(b) must include
a summary of the information provided by participating electricity
suppliers under subsection (a) with respect to the most recently
ended calendar year. The commission's duty to include the
information specified in this subsection in its annual report to the
regulatory flexibility committee terminates after the commission has
submitted the information that applies to the calendar year ending
December 31, 2025.
As added by P.L.150-2011, SEC.16.
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