# Indiana SB 241: Utility service enhancement improvement costs. Indiana SB 241, Utility service enhancement improvement costs., is a Second Regular Session 124th General Assembly (2026) Senate bill sponsored by Eric Koch (Republican); status signed, last action 2026-03-05 (Public Law 127); PRIA reads it as touching household money (as of 2026-11-01). - Canonical: https://policyrisk.com/state-bill/IN-SB241-2026 - As of: 2026-11-01 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Indiana SB 241 - State: Indiana - Session: Second Regular Session 124th General Assembly (2026) - Title: Utility service enhancement improvement costs. - Status: signed - Chamber: Senate - Introduced: 2026-01-08 - Last action: 2026-03-05, Public Law 127 - Sponsor: Eric Koch (Republican) - Cosponsors: 7 - Subjects: utilities, the house - Touches household money: yes - Roll calls: 3 (177 yes, 8 no in all) - Economic provisions PRIA read: 4 ## 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. ## Bill overview: provisions PRIA read - Lower Connection Fees For Workforce Housing: benefit, low. Effective upon passage, the law provides utility connection fee relief for qualifying workforce housing built by eligible tax-exempt nonprofits. Nonprofits must have an agreement with the Indiana Housing and Community Development Authority and a special utility contract. Homes must be single-family… - Rural Utility Standards Include Customer Protections: benefit, low. Beginning July 1, 2026, Indiana’s utility commission can set procedures or standards for qualifying water and sewer utilities. It can act on its own or after a request allowed by state law. After notice and a hearing, it must find the standards serve the public interest and advance a statutory goal… - Faster Utility Charges With Regulatory Review: mixed, low. Eligible utilities can seek certain rate add-ons without first getting an improvement plan approved. Costs listed in section 7(2)(B) and (C) qualify for full recovery, without the usual 20% delay. For section 7(2)(A) improvements, Indiana’s utility commission must find the work reasonable and neces… - Utility Cost Changes Bring Charges Or Credits: mixed, low. Eligible utilities can request chemical or power cost adjustments at least two years after their last basic-rate order. Average actual annual costs must change by at least 3% over that two-year period, with supporting records and calculations. The difference from current collections, adjusted for p… ## Sponsors and cosponsors - Sponsor: Eric Koch (Republican), Senate - Cosponsor: Andrea Hunley (Democratic), Senate - Cosponsor: Blake Doriot (Republican), Senate - Cosponsor: Dave Hall (Republican), House - Cosponsor: Edmond Soliday (Republican), House - Cosponsor: Jim Pressel (Republican), House - Cosponsor: Randy Maxwell (Republican), Senate - Cosponsor: Spencer Deery (Republican), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-02-25 | Senate | Senate concurred with House amendments | pass | 44 | 3 | | | 2026-02-09 | House | Third reading: passed | pass | 91 | 3 | | | 2026-01-22 | Senate | Third reading: passed | pass | 42 | 2 | | ## Actions (23) - 2026-03-05: Public Law 127 (Senate) - 2026-03-05: Signed by the Governor (Senate) - 2026-02-27: Signed by the Speaker (House) - 2026-02-27: Signed by the President of the Senate (Senate) - 2026-02-27: Signed by the President Pro Tempore (Senate) - 2026-02-25: Senate concurred with House amendments; Roll Call 284: yeas 44, nays 3 (Senate) - 2026-02-16: Motion to concur filed (Senate) - 2026-02-10: Returned to the Senate with amendments (House) - 2026-02-09: Third reading: passed; Roll Call 210: yeas 91, nays 3 (House) - 2026-02-05: Second reading: ordered engrossed (House) - 2026-02-03: Representatives Hall, Pressel added as cosponsors (House) - 2026-02-03: Committee report: amend do pass, adopted (House) - 2026-01-28: First reading: referred to Committee on Utilities, Energy and Telecommunications (House) - 2026-01-23: Referred to the House (Senate) - 2026-01-22: House sponsor: Representative Soliday (Senate) - 2026-01-22: Third reading: passed; Roll Call 59: yeas 42, nays 2 (Senate) - 2026-01-20: Second reading: ordered engrossed (Senate) - 2026-01-15: Senators Doriot, Maxwell added as coauthors (Senate) - 2026-01-15: Committee report: amend do pass, adopted (Senate) - 2026-01-15: Senator Hunley added as third author (Senate) - 2026-01-15: Senator Deery added as second author (Senate) - 2026-01-08: Authored by Senator Koch (Senate) - 2026-01-08: First reading: referred to Committee on Utilities (Senate) ## Bill text - Enrolled Senate Bill (S): [PDF](https://api.iga.in.gov/2026/bills/SB0241/versions/SB0241.04.ENRH?format=pdf) - Introduced Senate Bill (S): [PDF](https://api.iga.in.gov/2026/bills/SB0241/versions/SB0241.01.INTR?format=pdf) - Senate Bill (H): [PDF](https://api.iga.in.gov/2026/bills/SB0241/versions/SB0241.02.COMS?format=pdf) - Senate Bill (S): [PDF](https://api.iga.in.gov/2026/bills/SB0241/versions/SB0241.03.COMH?format=pdf) ## Related bills - SB 239: Various education matters. (signed) - SB 204: Various education matters. (signed) - SB 185: Alcohol and tobacco matters. (signed) - SB 179: Indiana department of transportation. (signed) - SB 80: Code publication. (signed) - HB 1424: Farm and homestead food sales. (signed) ## Sources - [Enrolled Senate Bill (S) (PDF)](https://api.iga.in.gov/2026/bills/SB0241/versions/SB0241.04.ENRH?format=pdf) - [Introduced Senate Bill (S) (PDF)](https://api.iga.in.gov/2026/bills/SB0241/versions/SB0241.01.INTR?format=pdf) - [Senate Bill (H) (PDF)](https://api.iga.in.gov/2026/bills/SB0241/versions/SB0241.02.COMS?format=pdf) - [Senate Bill (S) (PDF)](https://api.iga.in.gov/2026/bills/SB0241/versions/SB0241.03.COMH?format=pdf) ## Related - [SB 239: Various education matters.](https://policyrisk.com/state-bill/IN-SB239-2026) - [SB 204: Various education matters.](https://policyrisk.com/state-bill/IN-SB204-2026) - [SB 185: Alcohol and tobacco matters.](https://policyrisk.com/state-bill/IN-SB185-2026) - [SB 179: Indiana department of transportation.](https://policyrisk.com/state-bill/IN-SB179-2026) - [SB 80: Code publication.](https://policyrisk.com/state-bill/IN-SB80-2026) - [HB 1424: Farm and homestead food sales.](https://policyrisk.com/state-bill/IN-HB1424-2026) - [Indiana bills](https://policyrisk.com/states/indiana/bills) - [Indiana state hub](https://policyrisk.com/states/indiana) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/IN-SB241-2026 (as of 2026-11-01).