1. (a) The following apply to a multi-year rate plan under this chapter:

   1. (1) An electricity supplier's petition for approval of a multi-year rate plan under this chapter must include the electricity supplier's:

      1. (A) case in chief (as defined in IC 8-1-2-42.7 (c), including the electricity supplier's proposed:

         1. (i) revenue requirement; and
         2. (ii) base rates for each customer class; and

      2. (B) proposed test period using forward looking periods the close of which correspond with the end of the second and third rate years in the electricity supplier's multi-year rate plan;

         for each of the rate years in the multi-year rate plan.

   2. (2) The base rates for the first rate year of an electricity supplier's multi-year rate plan shall be established by the commission in the same manner that base rates would be established in a proceeding for a change in the electricity supplier's basic rates and charges that occurs outside of a multi-year rate plan, based on an appropriate test year under IC 8-1-2-42.7 (e) used to determine the electricity supplier's actual and pro forma operating revenues, expenses, and operating income under current and proposed rates, adjusted for changes that are fixed, known, and measurable for ratemaking purposes and that occur within a reasonable time after the end of the test year.

   3. (3) The base rates for the second and third rate years of an electricity supplier's multi-year rate plan shall be established using:

      1. (A) changes in the electricity supplier's net plant in service from the end of the immediately preceding rate year, including any difference between:

         1. (i) actual net plant in service at the end of the rate year; and
         2. (ii) the projected net plant in service used in the electricity supplier's test period for that rate year; and

      2. (B) changes in the net balance of any regulatory asset or liability from the end of the immediately preceding rate year.

         As used in this subdivision, "net plant in service" refers to both utility plant in service and accumulated depreciation.

   4. (4) In establishing an electricity supplier's authorized return for the electricity supplier's multi-year rate plan, the commission shall consider any increased or decreased risk to:

      1. (A) the electricity supplier; and

      2. (B) the electricity supplier's ratepayers;

         that may result from the implementation of the multi-year rate plan.

   5. (5) For each rate year in an electricity supplier's multi-year rate plan, the following apply:

      1. (A) A customer affordability performance metric that:

         1. (i) is determined by the commission under section 23 of this chapter for that rate year;
         2. (ii) is based on the most recent customer affordability performance report submitted to the commission by the electricity supplier under section 18 of this chapter; and
         3. (iii) is used by the commission to establish a customer affordability PIM that applies to that rate year.

      2. (B) A customer affordability PIM that:

         1. (i) is based on the electricity supplier's performance in meeting the customer affordability performance metric described in clause (A); and
         2. (ii) provides financial rewards or penalties to the electricity supplier based on that performance in accordance with section 23 of this chapter.

      3. (C) A service performance restoration metric that:

         1. (i) is determined by the commission under section 24 of this chapter for that rate year;
         2. (ii) is based on the most recent service restoration performance report submitted to the commission by the electricity supplier under section 19 of this chapter; and
         3. (iii) is used by the commission to establish a service restoration PIM that applies to that rate year.

      4. (D) A service restoration PIM that:

         1. (i) is based on the electricity supplier's performance in meeting the service restoration performance metric described in clause (C); and
         2. (ii) provides financial rewards or penalties to the electricity supplier based on that performance in accordance with section 24 of this chapter.
2. (b) An electricity supplier's petition for approval of a multi-year rate plan under this chapter may include alternative regulatory practices, procedures, accounting treatments, and mechanisms that are consistent with this chapter.

3. (c) A multi-year rate plan under this chapter shall be considered separately by the commission from all:

   1. (1) rate adjustment mechanisms, including the fuel adjustment charge under IC 8-1-2-42 ; and

   2. (2) other cost recovery mechanisms;

      otherwise allowed by law, unless otherwise incorporated into the multi-year rate plan. In an electricity supplier's first petition for a multi-year rate plan under this chapter, the electricity supplier shall include a plan to incorporate planned capital expenditures, subject to preapproval by the commission, into the electricity supplier's subsequent multi-year rate plans under this chapter.

4. (d) An electricity supplier may elect to:

   1. (1) exclude from its proposed multi-year rate plan; and

   2. (2) defer for consideration by the commission and for future recovery;

      costs incurred or to be incurred in a regulatory asset, to the extent those specific costs are incremental and are not otherwise already included for recovery in the electricity supplier's rates, as authorized by IC 8-1-2-10 .

As added by P.L.36-2026, SEC.10.