Ind. Code § 8-1-40-1 "Commission"
Sec. 1. As used in this chapter, "commission" refers to the Indiana utility regulatory commission created by IC 8-1-1-2.
As added by P.L.264-2017, SEC.6.
Ind. Code ch. 8-1-40
Ind. Code ch. 8-1-40
in effectInd. Code § 8-1-40-2 "Customer"
Sec. 2. As used in this chapter, "customer" means a person that receives retail electric service from an electricity supplier.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-3 "Distributed generation"
Sec. 3. (a) As used in this chapter, "distributed generation" means electricity produced by a generator or other device that is:
(1) located on the customer's premises;
(2) owned by the customer;
(3) sized at a nameplate capacity of the lesser of:
(A) not more than one (1) megawatt; or
(B) the customer's average annual consumption of electricity on the premises; and
(4) interconnected and operated in parallel with the electricity supplier's facilities in accordance with the commission's approved interconnection standards.
(b) The term does not include electricity produced by the following:
(1) An electric generator used exclusively for emergency purposes.
(2) A net metering facility (as defined in 170 IAC 4-4.2-1(k)) operating under a net metering tariff.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-4 "Electricity supplier"
Sec. 4. (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.
(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.264-2017, SEC.6.
Ind. Code § 8-1-40-5 "Excess distributed generation"
Sec. 5. As used in this chapter, "excess distributed generation" means the difference between:
(1) the electricity that is supplied by an electricity supplier to a customer that produces distributed generation; and
(2) the electricity that is supplied back to the electricity supplier by the customer.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-6 "Marginal price of electricity"
Sec. 6. As used in this chapter, "marginal price of electricity" means the hourly market price for electricity as determined by a regional transmission organization of which the electricity supplier serving a customer is a member.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-7 "Net metering tariff"
Sec. 7. As used in this chapter, "net metering tariff" means a tariff that:
(1) an electricity supplier offers for net metering under 170 IAC 4-4.2; and
(2) is in effect on January 1, 2017.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-8 "Premises"
Sec. 8. As used in this chapter, "premises" means a single tract of land on which a customer consumes electricity for residential, business, or other purposes.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-9 "Regional transmission organization"
Sec. 9. As used in this chapter, "regional transmission organization" has the meaning set forth in IC 8-1-37-9.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-10 Availability of electricity supplier's net metering tariff; aggregate net metering facility nameplate capacity under tariff
Sec. 10. Subject to sections 13 and 14 of this chapter, a net metering tariff of an electricity supplier must remain available to the electricity supplier's customers until the earlier of the following:
(1) January 1 of the first calendar year after the calendar year in which the aggregate amount of net metering facility nameplate capacity under the electricity supplier's net metering tariff equals at least one and one-half percent (1.5%) of the most recent summer peak load of the electricity supplier.
(2) July 1, 2022.
Before July 1, 2022, if an electricity supplier reasonably anticipates, at any point in a calendar year, that the aggregate amount of net metering facility nameplate capacity under the electricity supplier's net metering tariff will equal at least one and one-half percent (1.5%) of the most recent summer peak load of the electricity supplier, the electricity supplier shall, in accordance with section 16 of this chapter, petition the commission for approval of a rate for the procurement of excess distributed generation.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-11 Changes to net metering tariffs prohibited before July 1, 2047; expiration of net metering tariffs after June 30, 2022
Sec. 11. (a) Except as provided in sections 12 and 21(b) of this chapter, before July 1, 2047:
(1) an electricity supplier may not seek to change the terms and conditions of the electricity supplier's net metering tariff; and
(2) the commission may not approve changes to an electricity supplier's net metering tariff.
(b) Except as provided in sections 13 and 14 of this chapter, after June 30, 2022:
(1) an electricity supplier may not make a net metering tariff available to customers; and
(2) the terms and conditions of a net metering tariff offered by an electricity supplier before July 1, 2022, expire and are unenforceable.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-12 Amendment of commission's net metering rules and electricity suppliers' net metering tariffs; increase to aggregate net metering facility nameplate capacity; reservation of capacity for residential customers and organic waste biomass facilities
Sec. 12. Before January 1, 2018, the commission shall amend 170 IAC 4-4.2-4, and an electricity supplier shall amend the electricity supplier's net metering tariff, to do the following:
(1) Increase the allowed limit on the aggregate amount of net metering facility nameplate capacity under the net metering tariff to one and one-half percent (1.5%) of the most recent summer peak load of the electricity supplier.
(2) Modify the required reservation of capacity under the limit described in subdivision (1) to require the reservation of:
(A) forty percent (40%) of the capacity for participation by residential customers; and
(B) fifteen percent (15%) of the capacity for participation by customers that install a net metering facility that uses a renewable energy resource described in IC 8-1-37-4(a)(5).
As added by P.L.264-2017, SEC.6. Amended by P.L.93-2024, SEC.72.
Ind. Code § 8-1-40-13 Installations of net metering facilities after December 31, 2017, and before expiration of tariff; continued service under tariff; successors in interest
Sec. 13. (a) This section applies to a customer that installs a net metering facility (as defined in 170 IAC 4-4.2-1(k)) on the customer's premises:
(1) after December 31, 2017; and
(2) before the date on which the net metering tariff of the customer's electricity supplier terminates under section 10(1) or 10(2) of this chapter.
(b) A customer that is participating in an electricity supplier's net metering tariff on the date on which the electricity supplier's net metering tariff terminates under section 10(1) or 10(2) of this chapter shall continue to be served under the terms and conditions of the net metering tariff until:
(1) the customer removes from the customer's premises or replaces the net metering facility (as defined in 170 IAC 4-4.2-1(k)); or
(2) July 1, 2032;
whichever occurs earlier.
(c) A successor in interest to a customer's premises on which a net metering facility (as defined in 170 IAC 4-4.2-1(k)) that was installed during the period described in subsection (a) is located may, if the successor in interest chooses, be served under the terms and conditions of the net metering tariff of the electricity supplier that provides retail electric service at the premises until:
(1) the net metering facility (as defined in 170 IAC 4-4.2-1(k)) is removed from the premises or is replaced; or
(2) July 1, 2032;
whichever occurs earlier.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-14 Installations of net metering facilities before January 1, 2018; continued service under tariff; successors in interest
Sec. 14. (a) This section applies to a customer that installs a net metering facility (as defined in 170 IAC 4-4.2-1(k)) on the customer's premises before January 1, 2018.
(b) A customer that is participating in an electricity supplier's net metering tariff on December 31, 2017, shall continue to be served under the terms and conditions of the net metering tariff until:
(1) the customer removes from the customer's premises or replaces the net metering facility (as defined in 170 IAC 4-4.2-1(k)); or
(2) July 1, 2047;
whichever occurs earlier.
(c) A successor in interest to a customer's premises on which is located a net metering facility (as defined in 170 IAC 4-4.2-1(k)) that was installed before January 1, 2018, may, if the successor in interest chooses, be served under the terms and conditions of the net metering tariff of the electricity supplier that provides retail electric service at the premises until:
(1) the net metering facility (as defined in 170 IAC 4-4.2-1(k)) is removed from the premises or is replaced; or
(2) July 1, 2047;
whichever occurs earlier.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-15 Electricity supplier's duty to procure customers' excess distributed generation; amounts credited to customers to be recognized in fuel adjustment proceedings
Sec. 15. An electricity supplier shall procure the excess distributed generation produced by a customer at a rate approved by the commission under section 17 of this chapter. Amounts credited to a customer by an electricity supplier for excess distributed generation shall be recognized in the electricity supplier's fuel adjustment proceedings under IC 8-1-2-42.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-16 Electricity supplier's petition for rate for excess distributed generation; annual submission of updated rate
Sec. 16. Not later than March 1, 2021, an electricity supplier shall file with the commission a petition requesting a rate for the procurement of excess distributed generation by the electricity supplier. After an electricity supplier's initial rate for excess distributed generation is approved by the commission under section 17 of this chapter, the electricity supplier shall submit on an annual basis, not later than March 1 of each year, an updated rate for excess distributed generation in accordance with the methodology set forth in section 17 of this chapter.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-17 Commission's review of rate petition; notice and hearing; approval of rate; calculation
Sec. 17. The commission shall review a petition filed under section 16 of this chapter by an electricity supplier and, after notice and a public hearing, shall approve a rate to be credited to participating customers by the electricity supplier for excess distributed generation if the commission finds that the rate requested by the electricity supplier was accurately calculated and equals the product of:
(1) the average marginal price of electricity paid by the electricity supplier during the most recent calendar year; multiplied by
(2) one and twenty-five hundredths (1.25).
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-18 Credit on customer's monthly bill for excess distributed generation; excess credit carried forward
Sec. 18. An electricity supplier shall compensate a customer from whom the electricity supplier procures excess distributed generation (at the rate approved by the commission under section 17 of this chapter) through a credit on the customer's monthly bill. Any excess credit shall be carried forward and applied against future charges to the customer for as long as the customer receives retail electric service from the electricity supplier at the premises.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-19 Electricity supplier's petition to commission for recovery of energy delivery costs attributable to distributed generation customers; approval; findings by commission
Sec. 19. (a) To ensure that customers that produce distributed generation are properly charged for the costs of the electricity delivery system through which an electricity supplier:
(1) provides retail electric service to those customers; and
(2) procures excess distributed generation from those customers;
the electricity supplier may request approval by the commission of the recovery of energy delivery costs attributable to serving customers that produce distributed generation.
(b) The commission may approve a request for cost recovery submitted by an electricity supplier under subsection (a) if the commission finds that the request:
(1) is reasonable; and
(2) does not result in a double recovery of energy delivery costs from customers that produce distributed generation.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-20 Electricity supplier to provide necessary metering equipment; recovery of costs
Sec. 20. (a) An electricity supplier shall provide and maintain the metering equipment necessary to carry out the procurement of excess distributed generation from customers in accordance with this chapter.
(b) The commission shall recognize in the electricity supplier's basic rates and charges an electricity supplier's reasonable costs for the metering equipment required under subsection (a).
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-21 Commission's net metering and interconnection rules; application to distributed generation; permitted changes to rules
Sec. 21. (a) Subject to subsection (b) and sections 10 and 11 of this chapter, after June 30, 2017, the commission's rules and standards set forth in:
(1) 170 IAC 4-4.2 (concerning net metering); and
(2) 170 IAC 4-4.3 (concerning interconnection);
remain in effect and apply to net metering under an electricity supplier's net metering tariff and to distributed generation under this chapter.
(b) After June 30, 2017, the commission may adopt changes under IC 4-22-2 to the rules and standards described in subsection (a) only as necessary to:
(1) update fees or charges;
(2) adopt revisions necessitated by new technologies; or
(3) reflect changes in safety, performance, or reliability standards.
As added by P.L.264-2017, SEC.6. Amended by P.L.93-2024, SEC.73.
Ind. Code § 8-1-40-22 Distributed generation customer's duty to comply with standards
Sec. 22. A customer that produces distributed generation shall comply with applicable safety, performance, and reliability standards established by the following:
(1) The commission.
(2) An electricity supplier, subject to approval by the commission.
(3) The National Electric Code.
(4) The National Electrical Safety Code.
(5) The Institute of Electrical and Electronics Engineers.
(6) Underwriters Laboratories.
(7) The Federal Energy Regulatory Commission.
(8) Local regulatory authorities.
As added by P.L.264-2017, SEC.6.
Ind. Code § 8-1-40-23 Distributed generation equipment; customers' rights; attorney general to adopt rules
Sec. 23. (a) A customer that produces distributed generation has the following rights regarding the installation and ownership of distributed generation equipment:
(1) The right to know that the attorney general is authorized to enforce this section, including by receiving complaints concerning the installation and ownership of distributed generation equipment.
(2) The right to know the expected amount of electricity that will be produced by the distributed generation equipment that the customer is purchasing.
(3) The right to know all costs associated with installing distributed generation equipment, including any taxes for which the customer is liable.
(4) The right to know the value of all federal, state, or local tax credits or other incentives or rebates that the customer may receive.
(5) The right to know the rate at which the customer will be credited for electricity produced by the customer's distributed generation equipment and delivered to a public utility (as defined in IC 8-1-2-1).
(6) The right to know if a provider of distributed generation equipment insures the distributed generation equipment against damage or loss and, if applicable, any circumstances under which the provider does not insure against or otherwise cover damage to or loss of the distributed generation equipment.
(7) The right to know the responsibilities of a provider of distributed generation equipment with respect to installing or removing distributed generation equipment.
(b) The attorney general, in consultation with the commission, shall adopt rules under IC 4-22-2 that the attorney general considers necessary to implement and enforce this section, including a rule requiring written disclosure of the rights set forth in subsection (a) by a provider of distributed generation equipment to a customer.
As added by P.L.264-2017, SEC.6. Amended by P.L.93-2024, SEC.74.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/8Fetched: 10/17/2026