Levelized billing plans for income eligible electric customers; option to opt out; reconciliation mechanism; customer notice; use of term "budget billing" prohibited
Ind. Code § 8-1-2-4.7
in effectSec. 4.7. (a) As used in this section, "levelized billing plan" means a levelized payment plan, however denominated, that:
(1) applies to a customer's account with an electricity supplier;
(2) provides for the payment of a customer's bill in equal monthly installments; and
(3) involves a reconciliation mechanism in which:
(A) the amount of utility service actually used by the customer during a specified period is compared with the amount of utility service for which the customer was billed under the plan during the specified period; and
(B) the customer's account is either billed or credited, as appropriate, for any difference identified under clause (A).
(b) As used in this section, "customer" refers to a residential customer who has agreed to pay for utility service from an electricity supplier under the electricity supplier's standard residential tariff. The term does not include a residential customer who has agreed to pay for utility service from an electricity supplier under an alternative billing tariff approved by the commission.
(c) As used in this section, "electricity supplier" means a person, other than a municipally owned utility (as defined in IC 8-1-2-1(h)), that:
(1) provides utility service to customers; and
(2) is under the jurisdiction of the commission for the approval of rates and charges.
(d) As used in this section, "utility service" means electric service that is provided at retail to customers.
(e) An electricity supplier shall do the following:
(1) Beginning with the first monthly billing cycle that begins after June 30, 2026, apply a levelized billing plan to all active customer accounts:
(A) for utility service provided under the electricity supplier's standard residential tariff to a customer who is part of a household that is eligible for and has applied for assistance from a home energy assistance program administered under IC 4-4-33; and
(B) to which a levelized billing plan does not already apply.
(2) Not later than April 1, 2026, offer each customer of the electricity supplier a mechanism, through one (1) or more methods described in subsection (f)(4), by which the customer may opt out of a levelized billing plan at any time, without penalty, before or after the levelized billing plan is applied to the customer's account, subject to the reconciliation mechanism described in subsection (a)(3).
(3) Not later than July 1, 2026, for any levelized billing plan offered by the electricity supplier and applied to an active customer account, regardless of the date the levelized billing plan was first offered or applied, amend or design the levelized billing plan, as applicable, so that the reconciliation mechanism described in subsection (a)(3) is applied at such times during a calendar year to reflect, to the extent possible, typical seasonal patterns of electricity usage by residential customers, but not more than two (2) times during a calendar year.
(f) Not later than April 1, 2026, an electricity supplier shall provide to each customer described in subsection (e)(1) a written notice that:
(1) informs the customer that a levelized billing plan will be applied to the customer's account beginning with the first monthly billing cycle that begins after June 30, 2026, if a levelized billing plan does not already apply to the customer's account;
(2) describes, in clear language that is easily understandable to a lay person, the reconciliation mechanism described in subsection (a)(3), including an explanation of:
(A) the number of times during a calendar year that the reconciliation mechanism will be applied to the customer's account, subject to subsection (e)(3);
(B) for each time during a calendar year that the reconciliation mechanism will be applied, the monthly billing cycle after which the reconciliation mechanism will be applied; and
(C) the method by which the electricity supplier will:
(i) compare the amount of utility service actually used by the customer with the amount of utility service for which the customer was billed under the plan during the billing cycles that are being reconciled; and
(ii) either bill or credit the customer's account, as appropriate, for any difference identified under item (i);
(3) offers the customer a mechanism, through one (1) or more methods described in subdivision (4), by which the customer may opt out of a levelized billing plan at any time, without penalty, before or after the levelized billing plan is applied to the customer's account, subject to the reconciliation mechanism described in subsection (a)(3); and
(4) is delivered to the customer by one (1) or more of the following methods:
(A) United States mail.
(B) Electronic mail.
(C) A mobile application or another Internet based method.
(g) Not later than April 1, 2026, an electricity supplier shall post on its website the information set forth in subsection (f)(2) and (f)(3) for each levelized billing plan offered by the electricity supplier, regardless of the date the levelized billing plan was first offered.
(h) Except as provided in subsection (i), an electricity supplier may not refer to or promote a levelized billing plan required under this section as a "budget billing plan" in:
(1) the information required to be posted on the electricity supplier's website under subsection (g);
(2) any customer bill that is issued after June 30, 2026; or
(3) any customer or external communications made after June 30, 2026.
(i) The prohibition set forth in subsection (h) does not apply with respect to a billing plan that provides for levelized payments if the plan also allows a customer to:
(1) pay current or past due amounts for utility service in lower amounts, over an extended period of time, or according to another schedule agreed upon by the electricity supplier and the customer;
(2) defer the payment of current or past due amounts for utility service to some future date; or
(3) receive a forbearance with respect to the payment of certain amounts owed.
(j) The commission may adopt rules under IC 4-22-2 to implement this section.
As added by P.L.36-2026, SEC.2.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/8Fetched: 10/17/2026