Indiana Utility Law: Changes to the Indiana Code for Temporary Discounts and Private Generation Projects in HEA 1423

HEA 1423 was signed into law on March 27, 2014 and it makes two important changes.

1) The new law expands the temporary discount program for companies hiring in Indiana by:

  • reducing the threshold for utility discount applications from a maximum demand of at least ten megawatts to five megawatts
  • opening the discount to prospective employers, who may be considering locating a new facility in Indiana. (Previously, the discount was available only to existing employers expanding operations.)

2) The law also adds “private generation projects” to the list of alternative energy production facilities covered under Indiana Code § 8-1-2.4.

  • “Private generation projects” are cogeneration facilities with a generating capacity of at least eighty megawatts, and the energy generated is used primarily by the owner of the project.
  • The new Indiana Code § 8-1-2.4-6 permits the owner of a private generation project to sell excess electric output to an electric utility.
  • Finally, § 6 requires electric utilities to interconnect with private generation projects, subject to safety and financial constraints, to provide back up, maintenance, and supplementary power at a reasonable rate.

Jeremy Fetty is a partner in the law firm of Parr Richey Frandsen Patterson Kruse with offices in Lebanon and Indianapolis. He often advises businesses and utilities (for profit, non-profit and cooperative) on organizational, human resources, and transactional matters and drafts and reviews commercial contracts.

The statements contained herein are matters of opinion and general information only and are not to be considered legal advice and should not be construed to form an attorney-client relationship. If you have any questions regarding this article, please contact an attorney.

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