Indiana § 8-1-2-24 - Arrangement for distribution of profits or sliding scale of charges; temporary discount to demand component of electricity rates and charges

§ 8-1-2-24. Arrangement for distribution of profits or sliding scale of charges; temporary discount to demand component of electricity rates and charges

Sec. 24. (a) Nothing in this chapter shall be taken to prohibit a public utility from entering into any reasonable arrangement with its customers or consumers, or with its employees, or with any municipality in which any of its property is located, for the division or distribution of its surplus profits, or providing for a sliding scale of charges or other financial device that may be practicable and advantageous to the parties interested. No such arrangement or device shall be lawful until it shall be found by the commission, after investigation, to be reasonable and just and not inconsistent with the purpose of this chapter. Such arrangement shall be under the supervision and regulation of the commission.

(b) A customer of an electricity supplier (as defined in IC 8-1-2.3-2) that is a public utility that is under the jurisdiction of the commission for the approval of rates and charges may apply to the commission for a temporary discount to the demand component of the rates and charges contained in the electricity supplier's applicable standard tariff for service to a single facility of the customer that is located in Indiana if the customer:

(1) has or will have a maximum demand for electricity of at least five (5) megawatts at the facility;

(2) employs or will employ more than fifty (50) full-time employees at the facility;

(3) demonstrates that the temporary discount is necessary and essential for the customer to locate a facility in Indiana or to attract or create additional jobs or retain existing jobs at the facility;

(4) demonstrates that the customer's demand for electricity at the facility will:

(A) for an existing customer, increase by at least one (1) megawatt as a result of the jobs created or retained under subdivision (3); or

(B) for a prospective customer, equal at least five (5) megawatts as a result of locating the facility in Indiana; and

(5) has applied for and received from the Indiana economic development corporation approval for the requested temporary discount amount.

(c) Upon receiving an application from a customer of an electricity supplier under subsection (b), the commission may approve a temporary discount to the demand component of the rates and charges contained in the electricity supplier's applicable standard tariff if the commission finds that the discount is just and reasonable and consistent with the circumstances described by the customer under subsection (b), as follows:

(1) For circumstances not described in subdivision (2) or (3), a discount up to ten percent (10%).

(2) For circumstances involving a redevelopment project in which the customer is involved, a discount up to fifteen percent (15%).

(3) For circumstances involving a brownfield project in which the customer is involved, a discount up to twenty percent (20%).

(d) A temporary discount authorized under subsection (c) expires three (3) years after the effective date of the discount. The cost of the temporary discount shall be included by the commission in the cost of service for the electricity supplier and shall be deferred for ratemaking purposes by the electricity supplier for subsequent recovery in connection with the electricity supplier's next general retail electric rate case.

(e) A customer that receives a temporary discount under this section for service to a facility may not:

(1) enter into a contract with the customer's electricity supplier for electric utility service to the facility that provides for rates, terms, or conditions that differ from the rates, terms, and conditions contained in the electricity supplier's applicable standard tariff; or

(2) take electric utility service to the facility under a commission-approved economic development tariff offered by the electricity supplier.

(f) A temporary discount authorized under subsection (c) applies as follows:

(1) For an existing customer, only to the demand component of the customer's rates and charges related to the increase in the customer's load described in subsection (b)(4)(A). However, the commission may authorize the application of the applicable temporary discount under subsection (c) to all or part of the demand component of the customer's rates and charges related to the entire facility if the commission determines that a broader application is beneficial to all customers of the electricity supplier.

(2) For a prospective customer, to the demand components of the customer's rates and charges related to the entire load described in subsection (b)(4)(B).

(g) As used in this section, and except where otherwise indicated, "customer" includes a prospective customer of an electricity supplier.

Formerly: Acts 1913, c.76, s.27. As amended by P.L.59-1984, SEC.16; P.L.133-2013, SEC.3; P.L.222-2014, SEC.1.