Authority: IC 8-1-1-3; IC 8-1-8.5-10

Affected: IC 8-1-8.5; IC 8-1-2.5

Sec. 6. (a) The commission shall approve the recovery of reasonable lost revenues for energy efficiency programs and may approve the recovery of reasonable lost revenues for demand response programs.

(b) A utility seeking recovery of lost revenues shall propose for commission review a methodology or process for calculating lost revenues that accounts for the following:

1. (1) The impact of free-riders.
2. (2) Spillover.
3. (3) The change in the number of program participants between base rate cases.
4. (4) A revised estimate of the energy efficiency program's and demand response program's specific load impact resulting from the utility's EM&V activities.

(c) Nothing in this rule precludes a utility from proposing an alternative regulatory plan that eliminates the disincentive to pursue an energy efficiency program or demand response program in lieu of recovery of the utility's reasonable lost revenues. If the commission approves a utility's proposed alternative regulatory plan in a manner that eliminates the utility's disincentive to implement an energy efficiency or demand response program, lost revenue recovery shall not be approved.

(Indiana Utility Regulatory Commission; 170 IAC 4-8-6; filed Aug 31, 1995, 10:00 a.m.: 19 IR 28; readopted filed Jul 11, 2001, 4:30 p.m.: 24 IR 4233; readopted filed Apr 24, 2007, 8:21 a.m.: 20070509-IR-170070147RFA; readopted filed Aug 2, 2013, 2:16 p.m.: 20130828-IR-170130227RFA; filed Dec 5, 2018, 11:49 a.m.: 20190102-IR-170180127FRA; readopted filed Apr 11, 2019, 9:04 a.m.: 20190508-IR-170190136RFA; readopted filed Sep 12, 2025, 11:43 a.m.: 20251001-IR-170240381RFA)