In Indiana, the regulation of distributed generation, particularly for solar photovoltaic systems, falls under specific statutory frameworks and utility tariff structures. Indiana Code § 8-1-37-1 et seq. establishes the framework for net metering. Under this statute, eligible customer-generators are entitled to receive credit for excess electricity generated and sent to the electric utility’s distribution system. The net metering statute defines a customer-generator as a customer who owns and operates a solar energy system with a generating capacity not exceeding one megawatt (1 MW). The crediting mechanism involves offsetting the customer’s kilowatt-hour (kWh) consumption with their kWh generation. The rate at which excess generation is credited is typically the utility’s retail rate for electricity, effectively reducing the customer’s bill dollar-for-dollar. However, the statute also allows utilities to file alternative tariff proposals with the Indiana Utility Regulatory Commission (IURC) for approval. These alternative tariffs might deviate from the standard net metering provisions, potentially introducing different crediting mechanisms or charges, provided they are deemed to be in the public interest by the IURC. For instance, a utility might propose a “buy-all, sell-all” structure or a fixed credit rate for exported energy, which would differ from the traditional net metering approach. The determination of what constitutes an “eligible customer-generator” and the specific terms of interconnection and crediting are subject to IURC review and approval, ensuring compliance with both state law and federal guidelines concerning distributed energy resources. The underlying principle is to facilitate the adoption of renewable energy while ensuring the financial stability and operational integrity of the electric grid.

The Public Utility Regulatory Policies Act of 1978 (PURPA) aimed to encourage conservation of energy, optimize the use of facilities and resources, and promote equitable rates. In Indiana, the implementation and interpretation of PURPA’s provisions, particularly regarding qualifying facilities (QFs) and avoided cost rates, are governed by Indiana Code (IC) 8-1-2.5 and subsequent administrative rules promulgated by the Indiana Utility Regulatory Commission (IURC). When a utility proposes to acquire a qualifying facility’s power, the determination of the “avoided cost” is a critical factor. Avoided cost represents the cost that the utility would have incurred to generate the equivalent power itself or to purchase it from another source. Indiana law, consistent with federal PURPA mandates, requires utilities to purchase power from QFs at a rate that reflects these avoided costs. The IURC establishes guidelines and methodologies for calculating these avoided costs, which often involve projections of future fuel costs, operating expenses, and capital expenditures. The precise calculation of avoided cost rates can be complex, involving consideration of the utility’s generation mix, system load characteristics, and the specific terms of the power purchase agreement. However, the fundamental principle is that the rate should not exceed the cost the utility would otherwise incur. Therefore, a rate that is demonstrably higher than the utility’s projected internal generation costs or alternative purchase options would not align with the statutory and regulatory framework for avoided cost pricing under Indiana law.

In Indiana, the regulation of energy generation and transmission facilities, particularly those impacting the state’s electrical grid and environmental landscape, falls under the purview of the Indiana Utility Regulatory Commission (IURC). The Indiana Power Facility Siting Act, codified in Indiana Code Chapter 8-1-8.5, establishes a comprehensive framework for the siting of major utility facilities. This act requires that any utility proposing to construct a power facility with a generating capacity exceeding 50 megawatts, or a transmission line exceeding 138 kilovolts, must obtain a certificate of public convenience and necessity from the IURC. The IURC’s review process involves assessing various factors, including the facility’s impact on the environment, public health and safety, and the economic welfare of the state. Furthermore, the Act mandates public notice and participation opportunities, ensuring that affected communities have a voice in the decision-making process. The IURC considers the necessity of the facility, its compliance with environmental regulations, and its impact on the existing utility infrastructure. The ultimate decision to grant or deny a certificate hinges on whether the proposed facility serves the public convenience and necessity, balancing the need for energy with the protection of public and environmental interests. This rigorous review process is designed to ensure responsible energy development within Indiana.

The Indiana Utility Regulatory Commission (IURC) has the authority to approve or deny mergers, acquisitions, or consolidations of public utilities operating within the state. This oversight is primarily governed by Indiana Code § 8-1-2-42, which outlines the process and criteria for such transactions. The core of the IURC’s review involves determining whether the proposed transaction is in the public interest. This determination is multifaceted and considers several key factors. These include the impact on rates and charges for consumers, the quality and reliability of service, the financial stability and operational efficiency of the combined entity, and the potential for anticompetitive effects. The commission also examines the management and operational plans of the surviving or newly formed utility to ensure it can meet its service obligations. The IURC’s decision-making process often involves extensive public hearings, expert testimony, and detailed financial and operational analyses. The objective is to safeguard consumer welfare and ensure the continued provision of safe, adequate, and reliable utility services within Indiana, even when corporate structures change.

The Indiana Utility Regulatory Commission (IURC) has specific procedures for approving changes in utility rate structures, particularly for electric utilities. When an electric utility seeks to implement a new rate design that alters the cost allocation between different customer classes, such as residential versus industrial users, it must file a formal petition with the IURC. This petition initiates a comprehensive review process. The commission then conducts a public hearing where all interested parties, including consumer advocacy groups, industrial customers, and the utility itself, can present evidence and arguments. The IURC’s decision on the rate change is guided by principles of reasonableness, fairness, and the statutory mandate to ensure that rates are sufficient to provide adequate service, but not more than is necessary for that purpose. Indiana Code § 8-1-2-42 outlines the general authority of the IURC to approve rate schedules and the process for modifications. The key is that any significant alteration to rate design, especially one impacting cost recovery and customer burden, requires explicit IURC approval through a formal case, not through informal administrative pronouncements or unilateral utility action. Therefore, the most appropriate action for the utility to take is to file a formal petition for a rate adjustment with the IURC.

The Indiana Utility Regulatory Commission (IURC) has specific procedures for approving mergers and acquisitions involving public utilities. Indiana Code § 8-1-2-42 governs these transactions, requiring commission approval to ensure that the proposed merger is in the public interest. The public interest standard is broad and encompasses factors such as the financial stability of the combined entity, the impact on rates and services for consumers, the potential for improved operational efficiency, and the overall effect on competition within the relevant utility markets. When evaluating a merger, the IURC will scrutinize the proposed terms, conduct evidentiary hearings, and consider testimony from various stakeholders, including the utilities involved, consumer advocacy groups, and potentially other interested parties. The commission’s decision is based on whether the merger will result in just and reasonable rates, adequate service, and a financially sound utility that can meet future demands. This process is designed to protect the public from potential negative consequences of utility consolidation, such as increased prices, reduced service quality, or diminished accountability. The commission’s authority extends to imposing conditions on the approval to mitigate any identified adverse effects.

The Indiana Utility Regulatory Commission (IURC) employs various mechanisms to ensure the financial health and operational efficiency of public utilities, particularly concerning the recovery of capital expenditures for infrastructure upgrades. One such mechanism is the “securitization” of costs, which allows utilities to issue bonds to finance new projects or to refinance existing debt, often with the goal of lowering costs for consumers. Indiana Code § 8-1-39-1 et seq. outlines the framework for securitization, often referred to as “securitized financing orders.” These orders permit the utility to recover securitization charges, known as “transition bonds,” through rates. The key principle is that these transition bonds are to be recovered through non-bypassable charges, meaning all customers who receive utility service, regardless of their usage or any potential alternative energy sources they might adopt, contribute to their repayment. This ensures the utility can secure favorable financing terms, as the revenue stream supporting the bonds is more stable and predictable. The IURC’s approval process for securitization involves a thorough review of the proposed project, the financing plan, and the impact on customer rates. The commission must find that the securitization is in the public interest, meaning it will result in lower overall costs or improved service reliability for customers. The non-bypassable nature of the transition charges is a critical component of making securitization viable, as it provides the necessary security for bondholders.

The scenario describes a situation where an Indiana electric utility is proposing to decommission a coal-fired power plant and replace it with a combination of renewable energy sources and natural gas generation. The Indiana Utility Regulatory Commission (IURC) must approve this plan. Indiana law, particularly under Indiana Code § 8-1-8.5, governs the planning and approval of new generating facilities, including those that replace existing ones. The statute requires utilities to file integrated resource plans (IRPs) that detail their future energy needs and how they intend to meet them, considering cost-effectiveness, reliability, and environmental impact. When a utility proposes significant changes to its generation portfolio, such as retiring a major plant and building new capacity, the IURC scrutinizes the IRP to ensure it serves the public interest. This involves evaluating the economic feasibility of the proposed new sources, the impact on customer rates, the reliability of the new generation mix, and compliance with environmental regulations. The Commission’s role is to balance the utility’s operational needs with the protection of consumers and the environment. The specific requirement for a Certificate of Public Convenience and Necessity (CPCN) is a key procedural step under Indiana Code § 8-1-8.5-12 for constructing or acquiring new generating capacity exceeding a certain threshold, which is highly likely to apply in this case given the scale of replacing a coal plant. The IURC’s decision-making process involves public hearings, expert testimony, and a thorough review of the utility’s proposal against statutory criteria.

The Indiana Utility Regulatory Commission (IURC) oversees the regulation of public utilities in Indiana. When a utility seeks to recover costs associated with the decommissioning of a nuclear power plant, it typically files a petition for a financing order under Indiana Code § 8-1-2.9-1 et seq., also known as the “securitization statute.” This statute allows utilities to issue securitized transition bonds to finance certain costs, including decommissioning expenses, by creating a statutory securitization mechanism. The IURC then reviews the petition to ensure that the proposed securitization is prudent, reasonable, and in the public interest, and that the associated costs are properly allocated. The commission’s approval of a financing order provides a statutory mechanism for the recovery of these costs through non-bypassable transition charges, which are collected by the utility from its customers. This process is distinct from traditional rate-making, as it creates a dedicated funding stream for the specific costs authorized in the financing order, providing financial certainty for the utility and its investors while also establishing a framework for customer protection through the IURC’s oversight. The key is the commission’s role in authorizing the securitization and the subsequent collection of transition charges, as established by the financing order, to recover the approved decommissioning costs.

The Indiana Utility Regulatory Commission (IURC) has specific procedures for approving mergers and acquisitions involving public utilities operating within the state. Indiana Code § 8-1-2-42 governs the sale, lease, assignment, mortgage, or other disposition of a public utility’s property or franchises. This statute requires that any such transaction, including a merger, receive prior approval from the IURC. The commission’s review process aims to ensure that the proposed transaction is in the public interest, meaning it will not adversely affect the quality of service, rates, or the financial stability of the utility in a manner detrimental to Indiana ratepayers. The commission considers various factors, including the impact on competition, the financial qualifications of the acquiring entity, the proposed operational plan, and the potential effects on employees. Without this explicit approval, the transaction is considered void and unenforceable under Indiana law. Therefore, a utility cannot simply proceed with a merger without undergoing the IURC’s regulatory scrutiny.

The question concerns the regulatory framework governing the siting and operation of new electric generation facilities in Indiana, specifically focusing on the role of the Indiana Utility Regulatory Commission (IURC) and the statutory requirements for obtaining approval. Indiana Code § 8-1-8.5-5 outlines the process for obtaining a Certificate of Public Convenience and Necessity (CPCN) for a new electric power generating facility. This statute mandates that any person proposing to construct a new generating facility with a generating capacity of at least 50 megawatts must obtain a CPCN from the IURC. The application process involves demonstrating that the proposed facility is in the public interest, considering factors such as environmental impact, economic benefits, reliability of service, and alternative energy sources. The IURC then conducts a thorough review, which may include public hearings, to assess these factors before issuing or denying the certificate. Failure to obtain a CPCN before commencing construction or operation renders the facility non-compliant with Indiana law, potentially leading to penalties and operational injunctions. The Indiana Environmental Policy Act (IEPA) and its implementing regulations, overseen by the Indiana Department of Environmental Management (IDEM), also play a crucial role in environmental permitting, but the initial authorization for the facility itself, particularly its economic and service implications, falls under the IURC’s purview via the CPCN process. The Indiana Department of Natural Resources (IDNR) is primarily concerned with the state’s natural resources, including water rights and land use, which can be relevant but are typically addressed within the broader CPCN application and environmental review. The Public Service Commission of Indiana is the former name of the IURC, and while historical context might be relevant, the current statutory authority rests with the IURC. Therefore, the primary legal hurdle for a new, large-scale power plant in Indiana is securing the CPCN from the IURC.

The Indiana Utility Regulatory Commission (IURC) has specific procedures for approving mergers and acquisitions involving public utilities operating within the state. Indiana Code § 8-1-2-42 governs these transactions, requiring utilities to obtain commission approval before consummating any merger, consolidation, or acquisition of stock or assets. The core of the commission’s review is to determine whether the proposed transaction is in the public interest. This involves an assessment of various factors, including the impact on rates, service quality, reliability, competition, and the financial stability of the combined entity. The commission’s authority extends to imposing conditions on any approval to ensure that the public interest is protected. For instance, if a merger is likely to lead to increased costs for consumers or a reduction in service standards, the IURC can mandate specific commitments from the utilities, such as rate freezes, service improvement plans, or divestiture of certain assets, as a prerequisite for approval. Failure to obtain this approval or to comply with any conditions can result in penalties. The statutory framework emphasizes a balancing act between allowing utilities to achieve economies of scale or operational efficiencies and safeguarding the interests of Indiana’s ratepayers. The commission’s role is to act as a fiduciary for the public, ensuring that utility consolidation does not compromise the availability or affordability of essential energy services.

The Indiana Utility Regulatory Commission (IURC) oversees the regulation of public utilities in Indiana. When a utility proposes a change in its rate structure or service terms, it must file a petition with the IURC. This petition initiates a formal proceeding where the proposed changes are scrutinized. The process typically involves public notice, opportunities for interested parties (including consumer advocacy groups and other stakeholders) to intervene and present evidence, and evidentiary hearings. The IURC then issues an order that either approves, denies, or modifies the proposed changes. Indiana Code § 8-1-2-42 outlines the general procedures for rate adjustments and service changes, emphasizing the commission’s authority to ensure just and reasonable rates and adequate service. The commission’s decisions are based on evidence presented during the proceeding, often involving detailed financial analyses, cost-of-service studies, and projections of future demand and expenses. The ultimate goal is to balance the utility’s need to earn a fair return on its investment with the public’s right to affordable and reliable service. The commission’s authority extends to setting standards for service quality and ensuring that utility operations are conducted in the public interest. The commission’s orders are subject to judicial review in Indiana courts, but the commission’s findings of fact are generally given deference.

The question concerns the regulatory framework for distributed generation projects in Indiana, specifically focusing on the role of the Indiana Utility Regulatory Commission (IURC) and the relevant statutory provisions. Indiana Code § 8-1-37-1 et seq. governs net metering and other aspects of distributed generation. While the IURC oversees utility rates and service, the specific authorization for a utility to offer a distributed generation program, including its terms and conditions, typically requires IURC approval through a formal rulemaking or an adjudicative proceeding. This ensures that such programs are just and reasonable and do not unduly burden other ratepayers. A municipal utility, while having some autonomy, is still subject to oversight regarding its service offerings and rates, especially when they deviate from standard tariffs. Therefore, the most appropriate pathway for a municipal electric utility in Indiana to establish a new customer-facing distributed generation program, like a community solar initiative, would involve seeking approval from the IURC for the program’s design, rates, and operational parameters. This process ensures compliance with state energy policy and provides a forum for all interested parties to comment.

The Indiana Utility Regulatory Commission (IURC) has the authority to approve or deny proposed rate increases for public utilities. When a utility seeks to recover costs associated with a new generating facility, the IURC scrutinizes the prudence of the investment and the reasonableness of the costs. Indiana Code § 8-1-2-42 outlines the process for rate adjustments, including the requirement for commission approval of new construction projects exceeding a certain threshold, and the subsequent review for cost recovery. The commission considers factors such as whether the facility is necessary to meet demand, whether the chosen technology was appropriate, and whether the construction was managed efficiently. If the commission finds that the utility did not act prudently in the planning, construction, or operation of the facility, it can disallow a portion or all of the costs from being recovered through rates. This disallowance is a mechanism to protect consumers from imprudent management decisions. The concept of “used and useful” is also central, meaning that only costs associated with assets that are currently providing service to customers can generally be recovered. However, for new construction, the commission may allow for recovery of costs during the construction period (construction work in progress or CWIP), subject to specific statutory provisions and commission rules, which often involve demonstrating the necessity and prudence of the project. The prudence review focuses on the decision-making process and management practices employed by the utility, not solely on the final cost of the project. The commission’s goal is to ensure that ratepayers are not burdened with costs that could have been avoided through more responsible utility actions.

The Indiana Utility Regulatory Commission (IURC) oversees various aspects of utility regulation within the state, including the approval of utility rate structures and the oversight of service quality. When a utility seeks to implement a new rate structure, particularly one that deviates from traditional cost-of-service methodologies, the IURC must evaluate the proposal based on established legal and regulatory principles. Indiana Code \(2-6-1-1\) et seq. provides the framework for administrative rulemaking, and utility rate cases are governed by Indiana Code \(8-1-2-42\), which outlines the process for rate adjustments. A key consideration for the IURC in approving such proposals is whether the proposed rates are just and reasonable, and whether they will allow the utility to recover its costs while ensuring adequate service to consumers. Furthermore, the IURC must consider the impact of the proposed rates on different customer classes and ensure that the overall rate design promotes energy efficiency and conservation, as mandated by broader energy policy goals. The commission’s decision-making process involves extensive public hearings, expert testimony, and detailed analysis of financial and operational data submitted by the utility. Approval of a new rate structure, especially one involving performance-based ratemaking (PBR) elements or significant changes in customer charges, requires a thorough demonstration by the utility that the proposed structure aligns with the public interest and statutory requirements for fair and equitable utility pricing. The IURC’s authority extends to ensuring that any new rate design does not unduly burden specific customer segments without a clear, justifiable rationale rooted in cost allocation or service provision.

The Indiana Utility Regulatory Commission (IURC) oversees the regulation of public utilities in Indiana, including those involved in the generation, transmission, and distribution of electricity. When a utility proposes a significant change in its operations, such as the retirement of a major generating facility, the IURC must review the proposal to ensure it is in the public interest. This review process typically involves assessing the impact on rates, reliability, environmental concerns, and the availability of alternative energy sources. Indiana law, specifically concerning utility regulation and rate-making, requires utilities to demonstrate that their proposed actions are just and reasonable. The IURC’s authority to approve or deny such proposals is derived from statutes like the Indiana Code Title 8, Article 1, which governs public utilities. The concept of “least-cost planning” is a guiding principle in utility regulation, encouraging utilities to procure power and manage their systems in a way that minimizes costs to consumers over the long term, while maintaining reliability and environmental compliance. When a utility proposes to retire a coal-fired power plant, the IURC will scrutinize the utility’s plan for replacing the lost capacity, considering factors such as the cost of new generation, transmission upgrades, and the impact on the state’s energy portfolio. The IURC’s decision-making process is informed by public hearings, expert testimony, and the legal framework governing utilities in Indiana. The ultimate goal is to balance the utility’s financial health with the public’s need for affordable, reliable, and increasingly sustainable energy.

The Indiana Utility Regulatory Commission (IURC) oversees the regulation of public utilities in Indiana. When a utility seeks to recover costs associated with infrastructure upgrades or new projects, it typically files a petition for a rate adjustment or a financing order. The Indiana Code, specifically IC 8-1-2, grants the IURC broad authority to approve or deny such requests based on whether the proposed expenditures are prudent, reasonable, and in the public interest. For financing orders, IC 8-1-2-42.5 outlines the process for securitizing certain energy transition costs, allowing utilities to issue securitized debt with a statutory rate adjustment mechanism to recover these costs. This mechanism aims to provide a stable and predictable recovery for investors, thereby lowering the cost of capital for the utility. The key consideration for the IURC in approving such financing orders is the demonstration that the securitized costs are prudently incurred and that the securitization process will result in tangible benefits to consumers, such as lower overall energy costs or improved reliability, compared to traditional financing methods. The commission must balance the utility’s need for cost recovery with the obligation to protect ratepayers from excessive or imprudent charges. The specific nature of the financing order, as defined by statute, allows for a direct recovery mechanism that is insulated from the typical delays and uncertainties of traditional rate cases for these particular costs.

The Indiana Utility Regulatory Commission (IURC) has specific guidelines regarding the recovery of costs for renewable energy projects by investor-owned utilities. Indiana Code § 8-1-8.5-11 outlines the process for approving purchased power agreements (PPAs) for renewable energy sources. This statute, along with relevant IURC rules such as 170 IAC 4-7, establishes that utilities can recover costs associated with approved PPAs through base rate adjustments, provided these costs are deemed prudent and in the public interest. The commission’s approval process for PPAs typically involves a detailed review of the project’s economics, the terms of the agreement, and its impact on customer rates. The recovery mechanism is not automatic; it requires a formal filing and approval by the IURC, often through a base rate case or a specific financing order. The concept of “prudence” is central to cost recovery, meaning the utility must demonstrate that the decisions made in entering into the PPA were reasonable and in accordance with industry standards at the time. The statute also allows for the recovery of costs related to renewable energy certificates (RECs) generated by these projects, further incentivizing renewable development. The commission’s role is to balance the utility’s need to recover legitimate costs with the protection of ratepayers from excessive charges. Therefore, the direct recovery of PPA costs through a tariff adjustment mechanism, without explicit commission approval of the underlying agreement and its prudence, would contravene the statutory framework.

The Indiana Utility Regulatory Commission (IURC) oversees the rates and services of public utilities in Indiana. When a utility seeks to recover costs associated with infrastructure upgrades, such as the modernization of its electric grid to integrate distributed energy resources and enhance reliability, it typically files a petition for a rate adjustment. This process involves a detailed review of the proposed expenditures, their necessity, and their prudence. The IURC then conducts a formal proceeding, often referred to as a “case,” where evidence is presented by the utility, consumer representatives, and other interested parties. The Commission’s decision is based on whether the proposed costs are reasonable and necessary for providing safe, adequate, and reliable service. Indiana law, particularly under IC 8-1-2, grants the IURC broad authority to approve or deny such cost recovery mechanisms. The concept of “prudent and necessary” expenditures is central to rate-making and ensures that ratepayers are not burdened with imprudent investments. The IURC’s determination is a quasi-judicial process, culminating in an order that either approves, modifies, or denies the requested rate adjustment, specifying the approved costs and the resulting rate changes.

The Indiana Utility Regulatory Commission (IURC) has the authority to approve or deny proposed rate increases for public utilities operating within Indiana. This authority is primarily exercised through a formal process often referred to as a “rate case.” During a rate case, a utility files a petition requesting specific rate adjustments. The IURC then conducts an investigation, which includes reviewing the utility’s proposed rates, its operating expenses, its capital investments, and its projected revenue requirements. This review often involves extensive discovery, public hearings, and expert testimony from various stakeholders, including consumer advocates, industrial users, and the utility itself. The IURC’s decision is guided by statutory mandates, such as ensuring that rates are just and reasonable, and that the utility can earn a fair rate of return on its invested capital, thereby maintaining its financial integrity and ability to provide reliable service. The Public Utility Regulatory Policies Act of 1978 (PURPA) also influences utility regulation in Indiana, particularly concerning cogeneration and small power production, but the core authority for setting retail rates for major utilities rests with the state commission. Indiana Code \(IC\) Title 8, Article 1 governs the powers and duties of the IURC, including its rate-setting authority. The concept of “used and useful” property is central to determining which capital expenditures can be included in the rate base, meaning only assets currently serving customers can be recovered through rates.

The question concerns the process of eminent domain for pipeline construction in Indiana, specifically focusing on the role of the Indiana Utility Regulatory Commission (IURC) and the legal framework governing such actions. Indiana Code § 8-1-8-1 grants pipeline companies the power of eminent domain for the construction of pipelines, provided they meet certain criteria. A critical aspect of this process is obtaining a certificate of territorial authority from the IURC. This certificate signifies that the proposed pipeline serves a public convenience and necessity, which is a prerequisite for exercising eminent domain. Without this certification, a pipeline company cannot legally acquire private property through eminent domain. Therefore, the initial step for a pipeline company seeking to condemn land for a new interstate natural gas pipeline in Indiana, even if it has obtained federal approval, is to secure this certificate from the IURC. This process involves demonstrating public need and compliance with state regulations.

The Indiana Utility Regulatory Commission (IURC) has established specific guidelines for the approval of utility infrastructure projects, particularly those involving significant capital investment and potential impacts on ratepayers. For a major transmission line upgrade, a utility must demonstrate that the project is necessary, cost-effective, and in the public interest. This typically involves a detailed cost-benefit analysis, a review of alternatives, and an assessment of environmental and community impacts. Indiana Code IC 8-1-2 governs the IURC’s authority over public utilities, including the requirement for certificates of public convenience and necessity for certain major construction projects. The IURC’s approval process ensures that such projects align with the state’s energy policy objectives and do not impose an undue financial burden on consumers. The commission weighs various factors, including the projected increase in electricity reliability, the reduction in transmission losses, and the economic development benefits, against the total cost of the project and its potential environmental externalities. The approval hinges on a comprehensive evidentiary record presented by the utility and often scrutinized by intervenors, including consumer advocacy groups and other stakeholders.

The question probes the regulatory framework governing the decommissioning of a solar photovoltaic facility in Indiana, specifically focusing on the financial assurance mechanisms required by state law. Indiana Code \(IC\) 13-22-12-11 mandates that a person who owns or operates a solar energy system, which includes solar farms, must provide financial assurance for the decommissioning of the system. This assurance is intended to cover the costs associated with removing the solar energy equipment, restoring the site, and managing any waste generated. The Indiana Department of Environmental Management (IDEM) promulgates rules under this statutory authority to detail the acceptable forms of financial assurance. These forms are typically outlined in administrative rules, such as those found in 329 Indiana Administrative Code. Common forms of financial assurance include surety bonds, letters of credit, trust funds, or an escrow account. The specific amount of financial assurance required is generally determined by an estimate of the decommissioning costs, which must be submitted to and approved by IDEM. This estimate should account for labor, materials, transportation, and disposal of components, as well as site restoration efforts to a condition comparable to the pre-development state, or as otherwise specified by IDEM. The purpose of requiring this financial assurance is to protect the state and its citizens from bearing the cost of decommissioning should the facility owner or operator become insolvent or otherwise unable to fulfill their obligations. The regulatory approach aims to ensure that environmental liabilities are adequately managed throughout the lifecycle of the energy project.

The Indiana Utility Regulatory Commission (IURC) oversees the regulation of public utilities in Indiana, including investor-owned electric, natural gas, telephone, and water utilities. A key aspect of its oversight involves approving utility rate structures and service standards. When a utility proposes a change to its rates, it must file a petition with the IURC. This petition is subject to a thorough review process that includes public notice, evidentiary hearings, and the opportunity for intervenors (such as consumer advocacy groups or industrial users) to present their cases. The IURC’s decision on a rate case is guided by statutory mandates, primarily ensuring that rates are just and reasonable, allowing the utility to recover its operating expenses and earn a fair rate of return on its invested capital, while also protecting the public interest by ensuring adequate service. The process is adversarial, with the utility presenting its case for increased rates and intervenors often arguing for lower rates or different service terms. The IURC then weighs the evidence presented by all parties to arrive at a final order. The Indiana Code, particularly IC 8-1, outlines the powers and duties of the IURC and the procedures for rate making. The concept of a “fair rate of return” is crucial, often determined through a “cost of capital” study, which is a complex financial analysis. The commission must balance the utility’s need for financial viability with the affordability of services for consumers.

The Indiana Utility Regulatory Commission (IURC) has broad authority to oversee public utilities within the state, including setting rates and approving financing. Indiana Code § 8-1-2-42 grants the IURC the power to approve or reject proposed securities issuances by utilities. This approval process is designed to ensure that the utility’s financial decisions are in the public interest and do not jeopardize service reliability or lead to imprudent costs for consumers. When a utility seeks to issue new debt, such as bonds, it must demonstrate to the Commission that the issuance is necessary for lawful purposes, such as capital improvements or refinancing existing debt, and that the terms of the issuance are reasonable and will not adversely affect the utility’s financial stability or its ability to serve its customers. The Commission reviews the proposed interest rates, maturity dates, covenants, and the overall impact on the utility’s capital structure. If the Commission finds that the proposed securities are not in the public interest, it can deny the application. This regulatory oversight is a key component of ensuring that Indiana’s energy infrastructure is developed and maintained in a manner that balances investor needs with consumer protection.

The Indiana Utility Regulatory Commission (IURC) oversees the regulation of public utilities in Indiana, including electric, natural gas, and water utilities. A key aspect of its oversight involves approving rate adjustments for these utilities. When a utility proposes a change in its rates, it must file a petition with the IURC. This petition is typically accompanied by extensive supporting documentation, including detailed financial statements, cost studies, and projections for future operating expenses and capital investments. The IURC then initiates a formal proceeding, often referred to as a “cause number,” to review the proposed rates. This process involves public notice, opportunities for intervention by interested parties such as consumer advocacy groups, industrial users, and other stakeholders, and evidentiary hearings where testimony is presented and cross-examined. The Commission’s decision is based on whether the proposed rates are just and reasonable, ensuring that the utility can recover its legitimate operating costs and earn a fair rate of return on its invested capital, while also protecting consumers from excessive charges. Indiana Code § 8-1-2-42 governs the procedures for rate changes by regulated utilities. The Commission’s final order will either approve, deny, or modify the proposed rates. The determination of a utility’s revenue requirement, which forms the basis for rate setting, involves several components, including operating expenses, depreciation, taxes, and a rate base upon which a fair rate of return is earned. The IURC’s role is to balance the financial health of the utility with the affordability and reliability of service for Indiana’s citizens.

The Indiana Utility Regulatory Commission (IURC) has established specific guidelines for determining the appropriate rate of return for public utilities, including electric generation facilities. Under Indiana Code § 8-1-2-42, the commission must consider various factors when setting these rates to ensure that utilities can attract capital and provide reliable service while protecting consumers from excessive charges. Key considerations include the cost of capital, market conditions, the utility’s financial health, and the risk associated with the specific investment. For a new, large-scale solar farm, the commission would likely analyze the project’s capital structure, the cost of debt and equity, and compare these to industry benchmarks for similar renewable energy projects in Indiana and the broader Midwest region. The commission’s decision would aim to establish a rate that reflects a reasonable return on investment, balancing the need for utility investment in new technologies with the imperative of maintaining affordable energy prices for Hoosier ratepayers. This involves a thorough review of the utility’s proposed cost of service, including projected operating expenses, depreciation, and taxes, all within the framework of established ratemaking principles and Indiana statutes governing utility regulation. The IURC’s objective is to authorize rates that are just and reasonable, reflecting the cost of providing service and allowing the utility to earn a fair return on its invested capital, thereby ensuring the continued provision of safe and reliable energy services.

The Indiana Utility Regulatory Commission (IURC) employs a variety of ratemaking methodologies to determine just and reasonable rates for utility services. One such method is the cost-of-service ratemaking, which aims to recover the utility’s prudently incurred costs while allowing a fair rate of return on investment. In Indiana, the determination of a utility’s revenue requirement involves several key components. The operating expenses are established, including fuel costs, labor, maintenance, and administrative overheads. The rate base, representing the net original cost or fair value of the utility’s property used and useful in providing service, is also determined. A rate of return, authorized by the IURC, is then applied to the rate base to calculate the return component of the revenue requirement. Finally, taxes are factored in. For a hypothetical electric utility in Indiana, if its approved rate base is \$500 million, its authorized rate of return is 9.5%, and its annual operating expenses (excluding depreciation and taxes) are \$80 million, and depreciation expense is \$20 million, and the applicable income tax rate is 30%, the calculation for the revenue requirement would be as follows: Return Component = Rate Base × Rate of Return Return Component = \$500,000,000 × 0.095 = \$47,500,000 Total Operating Costs = Operating Expenses + Depreciation Expense Total Operating Costs = \$80,000,000 + \$20,000,000 = \$100,000,000 Pre-Tax Income Needed = Return Component Pre-Tax Income Needed = \$47,500,000 To account for income taxes, the revenue needed before taxes to cover the return component is calculated as: Revenue for Return (Pre-Tax) = Return Component / (1 – Tax Rate) Revenue for Return (Pre-Tax) = \$47,500,000 / (1 – 0.30) Revenue for Return (Pre-Tax) = \$47,500,000 / 0.70 = \$67,857,142.86 (approximately) The total revenue requirement is the sum of operating costs and the pre-tax return component. Total Revenue Requirement = Total Operating Costs + Revenue for Return (Pre-Tax) Total Revenue Requirement = \$100,000,000 + \$67,857,142.86 = \$167,857,142.86 This calculation demonstrates how the IURC, through cost-of-service principles, ensures that utilities can cover their operational costs and earn a fair return, thereby maintaining service reliability and financial stability within Indiana. The specific methodologies and adjustments, such as the determination of the rate base and the authorized rate of return, are subject to rigorous review and public hearings.

The Indiana Utility Regulatory Commission (IURC) has broad authority over public utilities in Indiana. When a utility proposes a significant change in its service territory, such as acquiring another utility’s assets or expanding into a new area, the IURC must approve the action. This approval process is designed to ensure that such changes are in the public interest, meaning they are just and reasonable and will not adversely affect existing customers or the overall reliability of service. The relevant Indiana Code sections, particularly those governing utility mergers, acquisitions, and service area changes, outline the procedural requirements and substantive standards for IURC review. These statutes often require a formal evidentiary hearing where the utility must demonstrate that the proposed transaction meets specific criteria, which may include financial viability, operational efficiency, and customer benefits. Failure to obtain IURC approval for such actions would render them invalid and subject the utility to penalties. Therefore, a utility seeking to acquire the assets of a competitor within Indiana must navigate this regulatory framework.