Version b
Power subsidiaries of public utilities
Note: This version of section effective 1-1-2006. See also
preceding version of this section, effective until 1-1-2006.
Sec. 5. (a) As used in this section, a "power subsidiary" means a
corporation which is owned or controlled by one (1) or more public
utilities that furnish or sell electrical energy, natural or artificial gas,
water, steam, or steam heat and which produces power exclusively
for the use of those public utilities.
(b) A power subsidiary or a person engaged as a public utility is
a retail merchant making a retail transaction when the subsidiary or
person furnishes or sells electrical energy, natural or artificial gas,
water, steam, or steam heating service to a person for commercial or
domestic consumption.
(c) Notwithstanding subsection (b), a power subsidiary or a
person engaged as a public utility is not a retail merchant making a
retail transaction in any of the following transactions:
(1) The power subsidiary or person provides, installs,
constructs, services, or removes tangible personal property
which is used in connection with the furnishing of the services
or commodities listed in subsection (b).
(2) The power subsidiary or person sells the services or
commodities listed in subsection (b) to another public utility or
power subsidiary described in this section or a person described
in section 6 of this chapter.
(3) The power subsidiary or person sells the services or
commodities listed in subsection (b) to a person for use in
manufacturing, mining, production, refining, oil extraction,
mineral extraction, irrigation, agriculture, or horticulture.
However, this exclusion for sales of the services and
commodities only applies if the services are consumed as an
essential and integral part of an integrated process that produces
tangible personal property and those sales are separately
metered for the excepted uses listed in this subdivision, or if
those sales are not separately metered but are predominately
used by the purchaser for the excepted uses listed in this
subdivision.
(4) The power subsidiary or person sells the services or
commodities listed in subsection (b) and all the following
conditions are satisfied:
(A) The services or commodities are sold to a business that
after June 30, 2004:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)), a
military base reuse area established under IC 36-7-30, the
part of an economic development area established under
IC 36-7-14.5-12.5 that is or formerly was a military base (as
defined in IC 36-7-30-1(c)), a military base recovery site
designated under IC 6-3.1-11.5, or a qualified military base
enhancement area established under IC 36-7-34.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years
after the operations that are relocated to the facility or
expanded in the facility commence.
(C) The sales of the services or commodities are separately
metered for use by the relocated or expanded operations.
(D) In the case of a business that uses the services or
commodities in a qualified military base enhancement area,
the business must satisfy at least one (1) of the following
criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as
defined in IC 36-7-34-3).
(ii) The business is a United States Department of Defense
contractor.
(iii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the United States Department of Defense.
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another location
in Indiana in order to relocate its operations in an area described
in this subdivision, unless the department determines that the
business had existing operations in the area described in this
subdivision and that the operations relocated to the area are an
expansion of the business's operations in the area.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.48-1984,
SEC.1; P.L.71-1993, SEC.4; P.L.81-2004, SEC.19; P.L.190-2005,
SEC.1; P.L.203-2005, SEC.3.
Last modified: May 28, 2006