Sec. 12. (a) The interest of an assignee in securitization property and in securitization charges is not subject to setoff, counterclaim, surcharge, or defense by the electric utility or any other person, or in connection with the bankruptcy of the electric utility or any other person. A financing order remains in effect and unabated notwithstanding the bankruptcy of the electric utility, its successors, or assignees.

     (b) A financing order must include terms ensuring that the securitization charges authorized under the order are nonbypassable charges that are payable by all customers and customer classes of the electric utility, including any customer that:

(1) is participating in:

(A) a net metering program under 170 IAC 4-4.2;

(B) a distributed generation program under IC 8-1-40; or

(C) a feed-in-tariff program;

offered by the electric utility; or

(2) supplies at least part of the customer’s own electricity demand.

     (c) A financing order must include a mechanism requiring that securitization charges be reviewed and adjusted by the commission at least annually. Each year, not earlier than forty-five (45) days before the anniversary date of the issuance of securitization bonds under the financing order, and not later than the anniversary date of the issuance of the securitization bonds, the electric utility shall submit to the commission an application to do the following:

(1) Correct any overcollections or undercollections of securitization charges during the twelve (12) months preceding the date of the filing of the electric utility’s application under this section. For the first annual review under this section, the electric utility shall correct for any overcollections or undercollections of securitization charges during those months:

(A) that precede the date of the filing of the electric utility’s application under this section; and

(B) in which securitization charges were collected.

(2) Ensure, through proposed securitization charges, as set forth by the electric utility in the application, the expected recovery of amounts sufficient to timely provide all payments of debt service and other required amounts and charges in connection with the securitization bonds.

The commission shall review the application, including the electric utility’s proposed securitization charges. The review of the filing must be limited to determining whether the application contains any mathematical or clerical errors in the application of the formula-based mechanism relating to the appropriate amount of any overcollection or undercollection of the securitization charges and the amount of an adjustment. If the proposed securitization charges have been appropriately calculated, the commission shall issue an order approving the application and the proposed securitization charges not later than forty-five (45) days after the filing of the application. The commission shall approve any revisions to securitization charges under this subsection without conducting an evidentiary hearing. At any time during a calendar year, an electric utility may, on its own initiative, file an application with the commission under this section as the electric utility may determine to be necessary to meet the requirements set forth in subdivisions (1) and (2). The commission shall review any application filed by an electric utility outside of the annual review schedule, including the electric utility’s proposed securitization charges, and if the proposed securitization charges have been appropriately calculated issue an order approving the application and the proposed securitization charges not later than forty-five (45) days after the filing of the application.

     (d) A financing order must provide that:

(1) any difference between:

(A) qualified costs approved by the commission in the financing order; and

(B) the electric utility’s qualified costs at the time an electric generation facility is retired;

shall be accounted for by the electric utility as a regulatory asset or liability;

(2) an electric utility that ultimately incurs costs of removal and restoration greater than the amount estimated at the time an electric generation facility is retired may seek recovery of such incremental costs through rates; and

(3) the commission may approve recovery of incremental costs under subdivision (2) if the commission finds the costs just and reasonable.

As added by P.L.80-2021, SEC.1. Amended by P.L.9-2022, SEC.15.