The bill remains in early committee review, but its scope signals a broader legislative interest in how utilities structure transactions, allocate costs, and pass expenses on to ratepayers.
At the center of the proposal is a tightening of approval authority for the Indiana Utility Regulatory Commission. Under the bill, utilities would be required to obtain commission approval before selling stock, entering certain contracts, reorganizing corporate structures, or acquiring control of another utility or utility holding company.
The legislation also establishes a right of first refusal if a utility seeks approval to sell or transfer its franchise, works, or system. In such cases, priority would be granted to a municipality where the utility’s assets are located or to a public charitable trust. The provision would apply before a transaction could proceed to other buyers.
The bill places new limits on what utilities may recover through retail electric or natural gas rates. It would prohibit the recovery of direct or indirect costs associated with lobbying, legislative activity, political advocacy, litigation tied to legislation or regulatory actions, investor relations, charitable giving, and certain non-regulated programs.
These restrictions extend to affiliated entities, requiring utilities to account for costs billed or allocated from parent companies or subsidiaries. The intent is to prevent customers from subsidizing activities deemed outside the scope of regulated utility service.
Beginning in 2026, energy utilities would be required to file annual reports detailing costs tied to the restricted activities. Required disclosures include employee roles and compensation, affiliate relationships, vendor payments, and internal cost allocations.
The commission would be required to make these reports publicly available on its website, subject to confidentiality protections required under state or federal law. The reporting provisions would significantly expand the level of detail available to regulators, policymakers, and the public.
While Senate Bill 152 is still in the early stages of review, it reflects a broader trend toward increased scrutiny of utility corporate behavior as states grapple with infrastructure investment, affordability concerns, and regulatory accountability.
For Indiana utilities, the proposal signals potential changes to transaction approvals and cost-recovery practices. For industry observers, it adds to a growing body of state-level efforts aimed at tightening oversight of utility governance and financial transparency.
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