Indiana SB 241 — Utility service enhancement improvement costs.

Indiana, 2026. SB 241: Utility service enhancement improvement costs.

Plural source record ↗

Official legislative source ↗

Official legislative source ↗

Latest action

March 5, 2026 — Public Law 127

Summary

Amends the statute that authorizes a conservancy district providing water service to withdraw from the jurisdiction of the Indiana utility regulatory commission (IURC) if the conservancy district serves less than 2,000 customers, so as to authorize a withdrawal from the IURC's jurisdiction if the conservancy district serves less than 3,000 customers. Amends the existing statute authorizing alternative regulatory procedures for water or sewer utilities with customer bases not exceeding specified numbers to include within the scope of the statute a procedure that promotes economic development opportunities in rural areas while providing just and reasonable protections to a utility's existing ratepayers. Prohibits a water or wastewater utility (utility) from charging or collecting a capacity related fee or a tap fee to an eligible customer for connecting workforce housing to the utility's water or wastewater system (system) under certain circumstances. Provides that if the utility determines that the extension of service to the workforce housing will not result in a positive contribution to the utility's overall cost of service over a 20 year period, the utility may charge and collect from the eligible customer a capacity related fee or a tap fee that does not exceed the difference between: (1) the otherwise applicable capacity related fee or tap fee; minus (2) the contribution to the utility's overall cost of service over a 20 year period that will result from the extension of service to the workforce housing. Provides that for purposes of these provisions, an "eligible customer" means a not-for-profit organization that: (1) has entered into an agreement with the Indiana housing and community development authority under which the person will construct workforce housing in Indiana; and (2) seeks to connect the workforce housing to the system of a utility under the terms of a special contract with the utility. Authorizes a water or wastewater utility that is eligible under existing law to recover costs for service enhancement improvements (eligible utility) to adjust the statutory adjustment tracker to reflect certain per unit chemical and power costs if those costs have increased or decreased by more than 3% over the two most recent years. Provides that if the costs: (1) have increased by more than 3% over the two year period, the amount of the adjustment shall be included in the adjustment rider as an expense; or (2) have decreased by more than 3% over the two year period, the amount of the adjustment shall be included in the adjustment rider as a credit. Provides that an eligible utility is not required to seek preapproval of a plan from the IURC in order to seek recovery of the costs of chemicals and power. Requires an eligible utility for which the IURC has issued an order approving an adjustment rider for the recovery of chemical or power costs to file a petition for a change in its adjustment amount: (1) not later than 30 days after the end of each 12 month period after the date of the IURC's order approving the adjustment rider; and (2) until the IURC issues an order in the eligible utility's next general rate case. Specifies that the costs of chemicals and power may be recovered in full and without deferring 20% of the costs for recovery as part of the eligible utility's next general rate case.

Sponsors

• Eric Koch — primary sponsor
• Spencer Deery — primary sponsor
• Andrea Hunley — primary sponsor
• Blake Doriot
• Randy Maxwell
• Edmond Soliday — primary sponsor
• Dave Hall
• Jim Pressel

Bill text

Enrolled Senate Bill (S) Read version ↗

Senate Bill (S) Read version ↗

Senate Bill (H) Read version ↗

Introduced Senate Bill (S) Read version ↗

Recorded votes

Legislative history

1. March 5, 2026Public Law 127
2. March 5, 2026Signed by the Governor
3. February 27, 2026Signed by the Speaker
4. February 27, 2026Signed by the President of the Senate
5. February 27, 2026Signed by the President Pro Tempore
6. February 25, 2026Senate concurred with House amendments; Roll Call 284: yeas 44, nays 3
7. February 16, 2026Motion to concur filed
8. February 10, 2026Returned to the Senate with amendments
9. February 9, 2026Third reading: passed; Roll Call 210: yeas 91, nays 3
10. February 5, 2026Second reading: ordered engrossed
11. February 3, 2026Representatives Hall, Pressel added as cosponsors
12. February 3, 2026Committee report: amend do pass, adopted
13. January 28, 2026First reading: referred to Committee on Utilities, Energy and Telecommunications
14. January 23, 2026Referred to the House
15. January 22, 2026House sponsor: Representative Soliday
16. January 22, 2026Third reading: passed; Roll Call 59: yeas 42, nays 2
17. January 20, 2026Second reading: ordered engrossed
18. January 15, 2026Senators Doriot, Maxwell added as coauthors
19. January 15, 2026Committee report: amend do pass, adopted
20. January 15, 2026Senator Hunley added as third author
21. January 15, 2026Senator Deery added as second author
22. January 8, 2026Authored by Senator Koch
23. January 8, 2026First reading: referred to Committee on Utilities

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