IndianaSB 241Second Regular Session 124th General Assembly (2026)SenateWALLET

Utility service enhancement improvement costs.

Sponsored By: Eric Koch (Republican)

Became Law

utilitiesthe house

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 1 costs, 2 mixed.

Lower tap fees for workforce housing

Utilities cannot charge capacity or tap fees to eligible not‑for‑profit builders of workforce housing when the new connection adds a positive 20‑year contribution to service costs and the terms are in a special contract. If the 20‑year contribution is not positive, the fee is reduced to the difference between the standard fee and that contribution. Utilities may limit how many special contracts they allow to avoid unreasonable subsidies by other customers.

Most upgrade costs added to bills now

Beginning July 1, 2026, when a service‑enhancement plan is approved (or approval is not required), 80% of approved improvement costs go into a rider for timely recovery now. The remaining 20% is deferred to the next general rate case. If actual costs exceed the plan’s projection by more than 25%, the utility must justify the extra and get commission approval before charging it in the next rate case.

Quicker updates for chemical and power costs

Beginning July 1, 2026, certain chemical and power costs count as service enhancements when they protect health, safety, or the environment. For these costs, the rider is a fixed monthly charge by meter size and must recover the full amount now, with no 20% deferral. If two years have passed since the last base rate order and average costs changed at least 3%, the rider is recalculated; increases are added, and decreases are credited. A utility with an approved rider must file for changes every 12 months (within 30 days after each 12‑month period), and the commission rules within 60 days.

Faster rate decisions for small utilities

Starting July 1, 2026, the commission can change rates for public or municipal utilities with fewer than 8,000 customers (or a qualifying division under 5,000) without a formal public hearing. More small conservancy districts are covered when they provide water to under 3,000 customers. The commission must issue a final order on plan preapproval within 210 days. Outside the annual chemical or power process, a utility can seek to change its initial rider amount only once every 12 months.

Sponsors & Cosponsors

Sponsor

  • Eric Koch

    Republican • Senate

Cosponsors

  • Andrea Hunley

    Democratic • Senate

  • Blake Doriot

    Republican • Senate

  • Dave Hall

    Republican • House

  • Edmond Soliday

    Republican • House

  • Jim Pressel

    Republican • House

  • Randy Maxwell

    Republican • Senate

  • Spencer Deery

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 177 • No: 8

Senate vote 2/25/2026

Roll Call 284 on SB0241.03.COMH.CON01

Yes: 44 • No: 3 • Other: 2

House vote 2/9/2026

Roll Call 210 on SB0241.03.COMH

Yes: 91 • No: 3

Senate vote 1/22/2026

Roll Call 59 on SB0241.02.COMS

Yes: 42 • No: 2 • Other: 3

Actions Timeline

  1. Public Law 127

    3/5/2026Senate
  2. Signed by the Governor

    3/5/2026Senate
  3. Signed by the Speaker

    2/27/2026House
  4. Signed by the President of the Senate

    2/27/2026Senate
  5. Signed by the President Pro Tempore

    2/27/2026Senate
  6. Senate concurred with House amendments; Roll Call 284: yeas 44, nays 3

    2/25/2026Senate
  7. Motion to concur filed

    2/16/2026Senate
  8. Returned to the Senate with amendments

    2/10/2026House
  9. Third reading: passed; Roll Call 210: yeas 91, nays 3

    2/9/2026House
  10. Second reading: ordered engrossed

    2/5/2026House
  11. Representatives Hall, Pressel added as cosponsors

    2/3/2026House
  12. Committee report: amend do pass, adopted

    2/3/2026House
  13. First reading: referred to Committee on Utilities, Energy and Telecommunications

    1/28/2026House
  14. Referred to the House

    1/23/2026Senate
  15. House sponsor: Representative Soliday

    1/22/2026Senate
  16. Third reading: passed; Roll Call 59: yeas 42, nays 2

    1/22/2026Senate
  17. Second reading: ordered engrossed

    1/20/2026Senate
  18. Senators Doriot, Maxwell added as coauthors

    1/15/2026Senate
  19. Committee report: amend do pass, adopted

    1/15/2026Senate
  20. Senator Hunley added as third author

    1/15/2026Senate
  21. Senator Deery added as second author

    1/15/2026Senate
  22. Authored by Senator Koch

    1/8/2026Senate
  23. First reading: referred to Committee on Utilities

    1/8/2026Senate

Bill Text

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (H)

  • Senate Bill (S)

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