Section 170IAC4-6-4. Approval

   The commission shall approve the use by a utility of qualified pollution control property to be constructed if the qualified pollution control property consists of one (1) or more air pollution control devices and, after notice and hearing, the commission finds:

(1) the proposed air pollution control devices meet applicable state or federal requirements;

(2) the proposed air pollution control devices are designed to accommodate the burning of coal from the geological formation known as the Illinois Basin;

(3) the estimated costs of construction and installation of the air pollution control devices are reasonable and should be approved by the commission; and

(4) the proposed air pollution control devices will be installed at one (1) or more coal burning generating facilities that will utilize Indiana coal as their primary fuel once the air pollution control devices are fully operational or, if a facility to be equipped with one (1) or more air pollution control devices will not use Indiana coal as its primary fuel totally or in part after the device or devices are fully operational, the utility will be justified in doing so because of:

(A) governmental requirements, including:

(i) federal or state environmental protection laws, rules, or regulations;

(ii) approved environmental compliance plan requirements; or

(iii) other governmental requirements reasonably found by the commission; or

(B) economic considerations, including:

(i) the minimization of total electric power and energy generation costs by the utility's system where the total costs:

(AA) account for the maintenance of acceptable levels of reliability in the utility's system;

(BB) include reasonably anticipated utility costs for environmental compliance at the utility's coal burning generating facilities that will be equipped with air pollution control devices;

(CC) are estimated through reasonable methods and assumptions over a time period that the utility uses for ascertaining its future long term electric power and energy demand and supply requirements; and

(DD) are measured in present value dollars as of the time of the proceedings before the commission on the utility's application; and

(ii) other economic considerations reasonably specified by the commission.

(Indiana Utility Regulatory Commission; 170 IAC 4-6-4; filed Oct 5, 1993, 5:00 p.m.: 17 IR 176; 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)