Indiana § 8-1-2-128 - Nonjurisdictional water or wastewater utilities; quadrennial reports on asset management program; general administrative order by commission; required training or continuing education

§ 8-1-2-128. Nonjurisdictional water or wastewater utilities; quadrennial reports on asset management program; general administrative order by commission; required training or continuing education

Sec. 128. (a) This section applies to a water or wastewater utility regardless of whether the water or wastewater utility has applied for or received a grant, loan, or other financial assistance from the authority under IC 5-1.2-10.

(b) The following definitions apply throughout this section:

(1) "Authority" refers to the Indiana finance authority established by IC 5-1.2-3-1.

(2) "Commission" refers to the Indiana utility regulatory commission created by IC 8-1-1-2.

(3) "Water or wastewater utility" means:

(A) a public utility (as defined in section 1(a) of this chapter);

(B) a municipally owned utility (as defined in section 1(h) of this chapter);

(C) a not-for-profit utility (as defined in section 125(a) of this chapter);

(D) a cooperatively owned corporation;

(E) a conservancy district established under IC 14-33; or

(F) a regional water district established under IC 13-26;

that provides water or wastewater service to the public in Indiana for compensation and that is not under the jurisdiction of the commission for approval of rates and charges.

(c) Beginning January 1, 2026, a water or wastewater utility shall submit to the commission, on a quadrennial basis, a report regarding the status of the water or wastewater utility's asset management program, as defined in the guidelines of the authority under IC 5-1.2-10. The report required under this subsection:

(1) shall be made in compliance with, and according to a schedule set forth in:

(A) the commission's general administrative order under subsection (h); and

(B) any other general administrative orders of the commission that the commission determines to be relevant; and

(2) must include information:

(A) demonstrating the water or wastewater utility's efforts to implement the guidelines under IC 5-1.2-10 for asset management programs; and

(B) certifying that:

(i) the water or wastewater utility has the technical, managerial, legal, and financial capability to support those efforts; and

(ii) in the case of a report submitted after December 31, 2026, the governing body of the water or wastewater utility has completed a training or continuing education program described in subsection (j) at least one (1) time during the four (4) year period covered by the report.

Evidence that a water or wastewater utility has submitted an asset management program to the authority in connection with an application for a grant, loan, or other financial assistance under IC 5-1.2 may be provided by the water or wastewater utility to satisfy the requirement under subdivision (2)(A), as long as the water or wastewater utility provides all other information required under this section and under the commission's general administrative order under subsection (h). In addition to providing the required information concerning the water or wastewater utility's asset management program, a water or wastewater utility shall also include in a report required by this subsection information regarding the status of any federal consent decree or other federal order to which the water or wastewater utility is subject at the time the report is submitted.

(d) Subject to subsection (i), the commission shall verify, on a quadrennial basis, that the asset management program of each water or wastewater utility is sufficient and complies with the commission's general administrative order under subsection (h). If the commission determines that a water or wastewater utility's asset management program:

(1) does not comply with the commission's general administrative order under subsection (h); or

(2) is otherwise insufficient to demonstrate that the water or wastewater utility has the technical, managerial, legal, and financial capability to operate and maintain the water or wastewater utility's water or wastewater system;

the commission shall notify the water or wastewater utility of the deficiency and provide a time frame in which the water or wastewater utility must correct the deficiency. The commission may require the water or wastewater utility to undergo an informal rate review in the manner set forth in IC 8-1-1.9-5(e)(1).

(e) If a water or wastewater utility receives two (2) consecutive notices of a deficiency under subsection (d) over the course of two (2) consecutive verifications under subsection (d):

(1) the commission shall assert jurisdiction over the rates and charges of the water or wastewater utility; and

(2) the water or wastewater utility must undergo base rate cases before the commission in the manner set forth in IC 8-1-1.9-5(e)(2).

Notwithstanding IC 8-1-2.7 or IC 8-1-1.9-5(e)(3), if, after the required period of rate regulation prescribed by IC 8-1-1.9-5(e)(2), the water or wastewater utility submits a report to the commission under subsection (c), and the commission determines that the report indicates that the water or wastewater utility's asset management program is sufficient, the water or wastewater utility may provide to the commission a notice withdrawing the utility from the commission's jurisdiction.

(f) If a water or wastewater utility receives three (3) consecutive notices of a deficiency under subsection (d) over the course of three (3) consecutive verifications under subsection (d), the commission may initiate a receivership proceeding with respect to the water or wastewater utility.

(g) The commission may enter into an agreement with:

(1) the department of environmental management; and

(2) the authority;

to carry out the requirements set forth in this section.

(h) Before October 1, 2025, the commission shall issue a general administrative order setting forth:

(1) the information required to be included in a report under subsection (c);

(2) the procedures for submitting a report under subsection (c), including a simplified alternative reporting form that:

(A) a water or wastewater utility with less than one thousand (1,000) customers may elect to submit; and

(B) enables the water or wastewater utility to:

(i) demonstrate the water or wastewater utility's efforts to implement the guidelines under IC 5-1.2-10 for asset management programs; and

(ii) certify that the water or wastewater utility has the technical, managerial, legal, and financial capability to support those efforts;

(3) the quadrennial reporting schedule for submitting a report under subsection (c);

(4) criteria to be used by the commission under subsection (d) to:

(A) determine whether a water or wastewater utility has undertaken efforts to establish and implement an asset management plan in accordance with the guidelines under IC 5-1.2-10; and

(B) identify a deficiency that would require a water or wastewater utility to undergo an informal rate review in the manner set forth in IC 8-1-1.9-5(e)(1); and

(5) any other information the commission considers relevant under this section.

(i) The commission may delegate its authority to:

(1) review reports submitted by water or wastewater utilities under subsection (c); and

(2) issue determinations and notices of deficiency under subsection (d);

to technical staff. A determination or notice of deficiency issued by technical staff may be appealed to the full commission. An action by the commission under this section is subject to review under IC 8-1-3.

(j) Beginning January 1, 2027, the governing body of a water or wastewater utility must, on at least a quadrennial basis, complete a training or continuing education program that:

(1) includes instruction on:

(A) best practices for establishing, implementing, and maintaining an asset management program, as defined in the guidelines of the authority under IC 5-1.2-10;

(B) the fiduciary duties of governing bodies of water or wastewater utilities;

(C) best practices with respect to the financial management of water or wastewater utilities; and

(D) complying with environmental regulations; and

(2) is offered by one (1) of the following providers:

(A) The commission.

(B) The drinking water and wastewater infrastructure research and extension program authorized by IC 5-1.2-11.5-10.

(C) A statewide not-for-profit association whose membership includes rural water or wastewater utilities.

A provider listed in clause (A) or (B) must offer at least one (1) training or continuing education program under this subsection at low or no cost to governing bodies of water or wastewater utilities. Not later than January 1, 2027, the commission shall publish on the commission's website a list of providers offering a training or continuing education program described in this subsection.

As added by P.L.91-2025, SEC.1.

IC 8-1-2.1Chapter 2.1. RepealedRepealed by Acts 1980, P.L.68, SEC.2.

IC 8-1-2.2Chapter 2.2. Municipal Electric Utility Programs

8-1-2.2-1Findings and purpose 8-1-2.2-2Definitions 8-1-2.2-3Authorization to cooperate 8-1-2.2-4Joint ownership of project 8-1-2.2-5Sale of capacity or output by a municipality 8-1-2.2-6Licenses and approvals 8-1-2.2-7Authority to contract for energy exchange 8-1-2.2-8Joint agency 8-1-2.2-9General powers of joint agencies 8-1-2.2-10Contracts with municipality 8-1-2.2-11Issuance of bonds 8-1-2.2-12Trust agreement or resolution on bondholders' rights 8-1-2.2-13Revenues 8-1-2.2-14Trust funds 8-1-2.2-15Remedies 8-1-2.2-16Bond eligibility for investment 8-1-2.2-17Agreement of state with bondholders 8-1-2.2-18Limited liability on bonds 8-1-2.2-19Approval of commission 8-1-2.2-20Acquisition and construction contracts 8-1-2.2-21Tax exempt status 8-1-2.2-22Payments in lieu of taxes 8-1-2.2-23Personnel 8-1-2.2-24Dissolution of joint agencies 8-1-2.2-25Annual reports 8-1-2.2-26Government grants and loans 8-1-2.2-27Eminent domain 8-1-2.2-28Liability of officers 8-1-2.2-29Construction with other laws 8-1-2.2-30Severability 8-1-2.2-31Member participating by electronic means of communication

IC 8-1-2.2-1Findings and purpose Sec. 1. Municipalities owning facilities for the distribution of electric power and energy are required by law to provide, and serve a public purpose by providing, customers with an adequate, a reliable, and an economical supply of electric power and energy. Individually, such municipalities or joint agencies are not financially capable of providing the planning, financing, locating, and building of needed new facilities for generation and transmission or operating or managing these facilities. Therefore, the general assembly finds it necessary and proper to provide a method for certain of those municipalities to jointly finance, develop, own, manage, and operate, either by themselves or with public utilities, electric generation and transmission facilities appropriate to the present and projected electric energy needs of such municipalities and to the changes in the electric utility industry affecting these municipalities or joint agencies.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.54-1992, SEC.1; P.L.81-1997, SEC.1.

IC 8-1-2.2-2Definitions Sec. 2. (a) The definitions in this section apply throughout this chapter.

(b) "Bonds" means electric utility revenue bonds, notes, and other evidences of indebtedness of a municipality or a joint agency issued under the provisions of this chapter.

(c) "Cost" or "cost of a project" means but may not be limited to the cost of acquisition, construction, reconstruction, improvement, enlargement, betterment, extension, decommissioning, or disposal of any project or part thereof, including:

(1) the cost of studies, plans, specifications, surveys, and estimates of costs and revenues relating thereto;

(2) the cost of land, land rights, rights-of-way and easements, water rights, fees, permits, approvals, licenses, certificates, franchises, and the preparation of applications thereof;

(3) administrative, legal, engineering, and inspection expenses;

(4) financing fees, expenses, and costs;

(5) working capital;

(6) initial fuel costs;

(7) interest on the bonds during the period of construction and for such reasonable period thereafter as may be determined by the issuing municipality or joint agency;

(8) establishment of reserves for the payment of debt service, for renewals and replacements, for working capital, for operating expenses, and for any other purposes deemed reasonable and proper; and

(9) all other expenditures of the issuing municipality or joint agency incidental, necessary, or convenient to the acquisition, construction, reconstruction, improvement, enlargement, betterment, extension, decommissioning, or disposal of any project and the placing of the same in operation.

(d) "Governing body" means the legislative body of a city or town or commissioners of a joint agency.

(e) "Joint agency" means an agency created by two (2) or more municipalities pursuant to section 8 of this chapter.

(f) "Municipality" means:

(1) a city or town in Indiana, or any board, agency, or commission of a city or town in Indiana, owning and operating on January 1, 1980, an electric utility that furnishes retail electric service to the public; or

(2) a city or town outside Indiana, or any board, agency, or commission of a city or town outside Indiana, owning and operating an electric utility that furnishes retail electric service to the public.

(g) "Project" means any plant, works, system, or facilities, and other real and personal property of any nature whatsoever necessary or convenient in the generation, transmission, transformation, purchase, sale, exchange, or interchange of electric power and energy or steam, or the development, production, manufacture, procurement, handling, storage, fabrication, enrichment, processing, or reprocessing of fuel of any kind or any facility or rights with respect to the supply of water, by any means whatsoever or any interest therein or any rights to the use, output, or capacity thereof. A transmission contract entered into under section 9(a)(14) of this chapter is not a project.

(h) "Public utility" means any corporation, company, limited liability company, partnership, or other form of legal entity, individual, association of individuals, or public agency organized under the laws of Indiana or another state of the United States authorized to own, operate, or control any plant or equipment for the generation, transmission, or distribution of electric power and energy and to sell electric power and energy to:

(1) the public;

(2) public or municipally owned utilities (as defined in IC 8-1-2); or

(3) cooperatives.

(i) "State" means the state of Indiana.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.23-1988, SEC.29; P.L.82-1988, SEC.1; P.L.8-1989, SEC.39; P.L.179-1991, SEC.12; P.L.1-1992, SEC.29; P.L.54-1992, SEC.2; P.L.1-1993, SEC.48; P.L.81-1997, SEC.2; P.L.36-2017, SEC.1.

IC 8-1-2.2-3Authorization to cooperate Sec. 3. Authorization to Cooperate. (a) In addition and supplemental to the powers otherwise conferred on municipalities by law, and in order to accomplish the purposes of this chapter, a municipality may plan, finance, develop, construct, reconstruct, acquire, improve, enlarge, own, operate and maintain an undivided interest as a tenant in common in a project jointly with one (1) or more municipalities, joint agencies or public utilities, and may plan and enter into contracts in this connection with them, not inconsistent with the provisions of this chapter.

(b) Prior to acquiring any undivided interest, the governing body shall determine the present and future needs of the municipality for power and energy based upon engineering studies and reports, and may not acquire an undivided interest as a tenant in common in a project in excess of that amount of capacity and the energy required to provide for its projected needs for power and energy for such reasonable period of time as shall be determined by the governing body and approved by the commission in a proceeding pursuant to section 19 of this chapter.

(c) The future power requirements of a municipality shall be evaluated by the governing body in accordance with the following:

(1) the economies and efficiencies to be achieved in constructing large scale facilities for the generation and transmission of electric power and energy;

(2) the municipality's needs for reserve and peaking capacity and obligations reasonably related to its needs for power and energy under pooling and reserve sharing agreements to which it is or may become a party;

(3) the estimated useful life of the project; and

(4) the estimated time for planning, development, acquisition or construction of the project and the time required in advance to obtain, acquire or construct additional power supply.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-4Joint ownership of project Sec. 4. (a) Each municipality, joint agency, or public utility shall own an undivided interest in any project in proportion to the amount of the money furnished or the value of property or other consideration supplied by it for the planning, development, acquisition, or construction of the project and shall be entitled to a percentage share of the project net output and capacity equal to the undivided interest. This section does not preclude a joint owner of a project from agreeing to take and pay for the project net output in a percentage share that differs from its undivided interest.

(b) Each municipality, joint agency, and public utility participating in a project shall be severally liable for its own acts and may not be held, jointly or severally liable for the acts, omissions, or obligations of others. However, nothing shall preclude each municipality, joint agency and public utility participating in a project from being severally liable for acts performed by any project manager, construction agent, or operating agent for such project. Except as otherwise provided in this chapter, no money or property or other consideration supplied by any municipality, joint agency, or public utility may be credited or otherwise applied to the account of any other municipality, joint agency, or public utility, nor shall the undivided share of any municipality, joint agency, or public utility in a project be charged directly or indirectly with any debt or obligation of any other municipality, joint agency, or public utility, or be subject to any lien as a result thereof. The acquisition of a project may include, but is not limited to, the purchase or lease of an existing and completed project or the purchase of a project under construction or the purchase of a project to be constructed. A municipality or joint agency participating in the joint planning, financing, construction, reconstruction, acquisition, improvement, enlargement, ownership, operation, or maintenance of any project under this chapter may furnish money derived solely from the proceeds of bonds or from the ownership and operation of its electric system, or both, and provide property, both real and personal, services, and other considerations.

(c) Any contract entered into by municipalities under this chapter with respect to joint ownership in a project shall contain terms, conditions, and provisions, not inconsistent with the provisions of this section. Any contract shall be ratified by resolution of the governing body of each municipality and recorded in its minutes. Any contract shall include the following:

(1) The purpose or purposes of the contract.

(2) The duration of the contract.

(3) The manner of appointing or employing personnel necessary in connection with the project.

(4) The method of financing the project including the apportionment of costs and revenues.

(5) Provisions specifying the ownership interests of the parties in property used or useful in connection with the project, and the procedures for the disposition of such property when the contract expires, is terminated, or when the project, for any reason, is abandoned, decommissioned, or dismantled.

(6) Provisions relating to alienation and prohibiting partition of a municipality's undivided interest in a project, which provisions shall not be subject to any provision of law restricting convenants against alienation or partition.

(7) Provisions for the construction of a project, which may include the determination that a municipality, joint agency, or public utility may construct the project as agent for all the parties.

(8) Provisions for the operation and maintenance of a project, which may include the determination that a municipality, joint agency, or public utility may operate and maintain the project as agent for all the parties.

(9) Provisions for the creation of a committee of representatives of the municipalities, joint agencies and public utilities jointly participating with such powers of supervision of the construction and operation of the project as the contract may provide, which are not inconsistent with the provisions of this chapter.

(10) Provisions that if one (1) or more of the municipalities, joint agencies, or public utilities default in the performance or discharge of its obligations with respect to the project, the other party or parties may assume, pro rata, or otherwise, the obligations of the defaulting party or parties and may succeed to the rights and interests of the defaulting party or parties as may be agreed upon in the contract.

(11) Methods for amending the contract.

(12) Methods for terminating the contract.

(13) Any other necessary or proper matter.

(d) For the purpose of paying its respective share of the cost of a project or projects, a municipality or joint agency may issue its bonds as provided in this chapter, and, notwithstanding the provisions of any other law to the contrary, may pledge to the payment of the principal, premium, if any, and interest on such bonds, the revenues, or any portion of revenues, derived or to be derived from the ownership and operation of its system or facilities for the generation, transmission, or distribution of electric power or energy or its interest in any joint project or projects, or a combination of such revenues. All bonds issued under the provisions of this chapter shall be authorized and issued by the governing body. Upon the request of the issuing municipality or joint agency the commission shall approve at one (1) time sufficient bonds to be issued to finance the issuer's share of the cost of a project even though such bonds are to be issued in series from time to time and even though the exact amount of such costs have not been finally determined and such approval may be of an indeterminate amount.

(e) Municipalities and joint agencies may jointly or severally own, operate and maintain projects with any public utility. Any municipality or joint agency shall have for such purposes all powers conferred upon them by the provisions of this chapter including the power to issue revenue bonds pursuant to the provisions of this chapter to finance its share of the cost of any such project. The definitions and all other terms and provisions of this chapter shall be construed so as to include such undivided ownership interest in order to fully effectuate the power and authority conferred by the foregoing provisions of this section.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.82-1988, SEC.2.

IC 8-1-2.2-5Sale of capacity or output by a municipality Sec. 5. Sale of Capacity or Output by a Municipality. Whenever a municipality has capacity or output derived from its ownership share of a project or otherwise in excess of its current needs or which cannot be economically utilized immediately, it may sell or exchange the excess capacity or output, by agreement, to any municipality owning electric distribution facilities, to any joint agency, or to any public utility. Sales of excess capacity or output of a project to public utilities shall not be made in such amounts, for such periods of time, and under such conditions as will cause the interest on bonds issued to finance the cost of a project to become taxable by the federal government.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.36-2017, SEC.2.

IC 8-1-2.2-6Licenses and approvals Sec. 6. Licenses and Approvals. Municipalities and joint agencies proposing to jointly plan, finance, develop, and operate a project are authorized to jointly or separately apply to any agency of the state or federal government for licenses, permits, certificates, or approvals.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-7Authority to contract for energy exchange Sec. 7. Authority to Contract for Energy Exchange. Municipalities participating in a project or projects are hereby authorized to enter into contracts for the exchange, interchange, wheeling, pooling, and transmission of electric power and energy produced by the project or projects with any municipality, joint agency, or public utility.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-8Joint agency Sec. 8. (a) The governing bodies of two (2) or more municipalities may, by resolution or ordinance, determine that it is in their best interests to create a joint agency, for the purpose of undertaking the planning, financing, ownership, and operation of a project or projects to supply electric power and energy for their present or future needs. Any joint agency created under this chapter shall be a body corporate and politic and a political subdivision of the state, and in exercising its powers under this chapter, it shall be deemed to be exercising a part of the sovereign powers of the state. The activities of the joint agency in carrying out the purposes of this chapter shall constitute state action. A joint agency created under this chapter is considered a governmental entity for purposes of IC 34-13-3.

(b) In determining whether or not the creation of a joint agency is in their best interests, the governing bodies shall consider the following:

(1) Whether cost reduction, efficiencies, or other advantages may be realized by creating a joint agency.

(2) Whether better financial market acceptance may result if a joint agency is responsible for issuing all of the bonds for the project or projects in a timely and orderly manner and with uniform credit ratings as opposed to multiple municipalities making separate issues of bonds.

If each governing body determines that it is in the best interests of the municipality to create a joint agency, each governing body shall adopt a mutually acceptable resolution or ordinance so finding (which need not prescribe in detail the basis for the determination), which shall set forth the names of the municipalities proposed to be members of the joint agency and shall authorize any two (2) or more of such municipalities to enter into a contract for the creation of the joint agency. After the execution of the contract, each municipality shall cause notice of the execution of the contract to be given to the presiding officer of the governing body of the municipality. The governing body shall thereupon appoint in writing one (1) commissioner of the joint agency.

(c) The appointed commissioners shall convene and issue a statement containing:

(1) a brief description of the resolution creating the joint agency;

(2) the name of the agency;

(3) the participating municipalities; and

(4) the names and addresses of the appointed commissioners.

The commissioners shall file copies of the statement with the commission, the secretary of state, and with the recorder of each county in which the member municipal utilities provide service.

(d) The joint agency shall consist of a board of commissioners. The governing body of each municipality shall appoint one (1) commissioner who may be an officer or employee of the municipality or a member or employee of the board described in IC 8-1.5-3-3(a). The appointment of a commissioner shall be made by resolution or ordinance. Each commissioner shall have not less than one (1) vote and may have such number of additional votes as a majority of the members of the joint agency shall determine. Each commissioner shall serve at the pleasure of the governing body by which the commissioner was appointed. A person may not serve as a commissioner on behalf of more than one (1) municipality at the same time. Each appointed commissioner before entering upon the commissioner's duties shall take and subscribe to an oath before a person authorized by law to administer oaths to execute the duties of the commissioner's office faithfully and impartially, and a record of the oath shall be filed with the governing body of the appointing municipality and entered in its minutes.

(e) The board of commissioners of the joint agency shall annually elect, from among its membership, a chairman and a vice chairman. It shall also annually elect another person or persons, who may be commissioners, as treasurer and secretary. It may also annually elect, if desired, one (1) or more assistant secretaries. The office of treasurer may be held by the secretary or an assistant secretary. The board of commissioners may also appoint additional officers. The secretary or assistant secretary of the joint agency shall keep a record of its proceedings, and the secretary shall be the custodian of all records, books, documents, and papers filed with the joint agency, the minute book or journal of the joint agency, and its official seal. Either the secretary or an assistant secretary of the joint agency may cause copies to be made of all minutes and other records and documents of the joint agency and may give certificates under the official seal of the joint agency to the effect that such copies are true copies, and all persons dealing with the joint agency may rely upon such certificates.

(f) A majority of the commissioners of a joint agency constitute a quorum. A vacancy in the board of commissioners of the joint agency shall not impair the right of a quorum to exercise all the rights and perform all the duties of the joint agency. Any action taken by the joint agency under this chapter may be authorized by resolution at any regular or special meeting, and each resolution takes effect immediately and need not be published or posted. A contract that is approved by a resolution of the board of commissioners may provide that an action may be taken under a delegation provision in the contract if the action taken is consistent with prudent utility practice. A majority of the votes which the convened commissioners are entitled to cast shall be sufficient to take any action or to pass any resolution, so long as the convened commissioners are entitled to cast a majority of the total number of votes held by the full board.

(g) Except as provided in this subsection, no commissioner of a joint agency may receive from the joint agency any compensation for the performance of the commissioner's duties under this chapter. However, each commissioner may be paid the commissioner's necessary expenses incurred while engaged in the performance of the commissioner's duties. In addition, a municipality may pay the commissioner it appoints up to fifteen dollars ($15) per day for each day or fraction of a day the commissioner is engaged in the performance of duties under this chapter, but only if the commissioner is not a person holding a lucrative office.

(h) The board of commissioners of the joint agency may create an executive committee of the board of commissioners. The board may provide for the composition of the executive committee. The executive committee shall have and shall exercise such of the powers and authority of the board of commissioners during the intervals between the board's meetings as shall be prescribed in the bylaws of the joint agency. The terms of office of the members of the executive committee and the method of filling vacancies on the executive committee shall be fixed by the bylaws of the joint agency.

(i) Additional municipalities may join a joint agency upon such terms and conditions as shall be provided in the contract for the creation of the joint agency.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.90-1985, SEC.1; P.L.82-1988, SEC.3; P.L.81-1997, SEC.3; P.L.36-2017, SEC.3; P.L.136-2018, SEC.56.

IC 8-1-2.2-9General powers of joint agencies Sec. 9. (a) Each joint agency shall have all of the rights and powers necessary or convenient to carry out the purposes and provisions of this chapter, including but not limited to the following:

(1) To adopt bylaws for the regulation of the affairs and the conduct of its business, and to prescribe rules, regulations, and policies in connection with the performance of its functions and duties.

(2) To adopt an official seal and alter the same at pleasure.

(3) To maintain an office at such place or places as it may determine.

(4) To sue and be sued in its own name and to plead and be impleaded.

(5) To receive, administer, and comply with the conditions and requirements respecting any gift, grant, or donation of any property or money.

(6) To acquire by purchase, lease, gift, or otherwise, or to obtain options for the acquisition of, any property, real or personal, improved or unimproved, including an interest in land less than the fee thereof.

(7) To sell, lease, exchange, transfer, or otherwise dispose of, or to grant options for any such purposes with respect to, any real or personal property or interest in any real or personal property.

(8) To pledge or assign any money, rents, charges, or other revenues and proceeds derived by the joint agency from the sales of bonds or property and insurance or condemnation proceeds and any contracts or other rights of the joint agency.

(9) To issue bonds of the joint agency for the purpose of paying all or any part of the costs of any of the projects or purposes authorized by this chapter.

(10) To study, plan, finance, construct, reconstruct, acquire, improve, enlarge, better, own, operate, and maintain individually or jointly with one (1) or more other joint agencies, municipalities or public utilities one (1) or more projects and to pay all or any part of the costs of the projects from the proceeds of bonds of the joint agency or from any other funds available to the joint agency.

(11) To generate, produce, transmit, deliver, exchange, purchase, or sell for resale only, electric power or energy or steam, and transmission and related services and to enter into contracts for any or all such purposes.

(12) To fix, charge and collect rents, rates, fees and charges for electric power or energy and other services, facilities, and commodities sold, furnished or supplied by it.

(13) To negotiate and enter into contracts with each of its member municipalities whereby each municipality may purchase power and energy and related services from the joint agency derived from any project or projects or without designation as to source and pursuant to which contracts each municipality shall agree to make payments from the revenues of its electric system adequate:

(A) to pay when due (whether at maturity, upon acceleration, or by sinking fund requirements) the principal, premium, if any, and interest on all bonds issued by the joint agency to finance any service provided to such member municipality, and to establish reserves for the payment of the principal, premium, if any, and interest on all bonds issued by the joint agency to finance any service provided to the municipality; and

(B) to pay the necessary expenses of the joint agency (including, without limitation, all amounts required to be collected pursuant to the trust agreement or resolution providing for the issuance of bonds) and to establish reserves for the payment of the necessary expenses of the joint agency.

(14) To make and execute contracts and other instruments necessary or convenient for the operation, maintenance, and management of a regional transmission system, including transmission facilities owned by a municipality or a joint agency. Such a contract may not be for a term that is more than fifty (50) years. Such a contract may not make the state, a political subdivision, or a municipality a shareholder in a public utility. Such a contract may delegate responsibilities if the delegation and action taken are consistent with prudent utility practice.

(15) To make and execute contracts and other instruments necessary or convenient in the exercise of the powers and functions of the joint agency under this chapter, including contracts with persons, firms, corporations, limited liability companies, and others.

(16) To employ engineers, attorneys, financial advisors, and such other consultants, agents, and employees as may be required in the judgment of the joint agency and to fix and pay their compensation from funds available to the joint agency for those purposes.

(17) To do all acts and things necessary, convenient, or desirable to carry out the purposes of, and to exercise the powers granted to, the joint agency under this chapter.

(b) No joint agency may finance a project or projects, in whole or in part, without first obtaining the approval of the commission as provided in section 19 of this chapter.

(c) No joint agency may construct any transmission line without first obtaining the approval of the commission as provided in section 19 of this chapter.

(d) A determination by the joint agency approved by the commission shall be conclusive unless a party to the proceeding aggrieved by the determination of the commission shall file notice of appeal pursuant to IC 8-1-3.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.82-1988, SEC.4; P.L.8-1993, SEC.116; P.L.81-1997, SEC.4; P.L.136-2018, SEC.57.

IC 8-1-2.2-10Contracts with municipality Sec. 10. (a) Any municipality which is a member of a joint agency may contract to purchase power and energy and related services from the joint agency derived from any project or projects or without designation as to source and pursuant to which contracts such municipality shall agree to make payments to the joint agency from the revenues of its electric system adequate:

(1) to pay when due (whether at maturity, upon acceleration, or by sinking fund requirements) the principal, premium, if any, and interest on all bonds issued by the joint agency to finance any service provided to such member municipality, and to establish reserves therefor; and

(2) to pay the necessary expenses of the joint agency (including, without limitation, all amounts required to be collected pursuant to the trust agreement or resolution providing for the issuance of bonds) and to establish reserves therefor.

Since the creation of a joint agency is an alternative method whereby a municipality may obtain the benefits of a joint project or projects, any contract may provide: (A) that the contracting municipality shall be obligated to make the payments required by the contract whether or not a project is completed, operable or operating and notwithstanding the suspension, interruption, interference, reduction or curtailment of the output of a project or the power and energy contracted for; and (B) that the payments under the contract may not be subject to any reduction whether by offset or otherwise, and may not be conditioned upon the performance or nonperformance of the joint agency or any other member of the joint agency under the contract or any other instrument. Any contract may also provide that if one (1) or more of the municipalities should default in the performance or discharge of its obligations under its contract, the other contracting municipalities shall assume, pro rata, or otherwise, the obligations of the defaulting municipality or municipalities and may succeed to the rights and interests of the defaulting municipality or municipalities as may be agreed upon in the contract. Any such contract may also provide for requirements, purchases, or exclusive dealing arrangements if the joint agency determines that such provisions are necessary to obtain financing on favorable terms.

(b) Notwithstanding the provisions of any other law to the contrary, a contract with respect to the sale or purchase of power and energy, transmission and related services, from a joint agency may extend for an initial period not exceeding fifty (50) years from the date service is estimated to be first rendered under the contract, with additional periods as may be agreed upon by the parties, and the execution and effectiveness of the contract may not be subject to any authorizations or approvals by the state or any agency, commission or instrumentality or political subdivision thereof except as specifically required and provided in this chapter, nor shall it be subject to any publication requirements.

(c) Payments by a municipality under any contract with a joint agency shall be payable solely from the revenues derived from the ownership and operation of the electric system of that municipality and may be treated as an expense of the operation and maintenance thereof if the contract so provides, and any obligation under that contract may not constitute a legal or equitable pledge, charge, lien, or encumbrance upon any property of the municipality or upon any of its income, receipts, or revenues, except the revenues of its electric system, and neither the faith and credit nor the taxing power of the municipality are, or may be, pledged for the payment of any obligation under any such contract. A municipality shall be obligated to fix, charge, and collect rents, rates, fees, and charges for electric power and energy and other services, facilities, and commodities, sold, furnished, or supplied through its electric system in an amount sufficient to provide revenues adequate to meet its obligations under any such contract and to pay any and all other amounts payable from or constituting a charge and lien upon such revenues. In any proceeding before the commission for the approval of rates set by a municipality subject to its jurisdiction, the commission shall make specific findings of the revenue requirements referred to in the prior sentence and shall provide rates sufficient for such requirements.

(d) Any member of a joint agency may furnish the joint agency with money derived solely from the ownership and operation of its electric system or facilities and provide the joint agency with personnel, equipment, and property, both real and personal. Any municipality may also provide any services to a joint agency.

(e) A joint agency or any member of a joint agency may contract for, advance, or contribute funds derived solely from the ownership and operation of its electric system or facilities to a joint agency or any member of a joint agency as may be agreed upon by the joint agency and the member. A:

(1) joint agency shall repay such advances or contributions from proceeds of bonds, or from any other funds of the joint agency; and

(2) member of a joint agency shall repay such advances or contributions from funds derived solely from the ownership and operation of its electric system or facilities;

together with interest thereon as may be agreed upon by the member and the joint agency.

(f) In the exercise of the powers enumerated in this chapter, including without limitation, the execution of contracts as provided in this section, a municipality and a joint agency shall be deemed to be exercising a part of the sovereign powers of the state and shall be exempt from any and all laws, rules, and regulations prohibiting, limiting, or conditioning anticompetitive conduct.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.36-2017, SEC.4.

IC 8-1-2.2-11Issuance of bonds Sec. 11. Issuance of Bonds. (a) Each municipality or joint agency is hereby authorized to issue at one (1) time, or from time to time, its bonds for the purpose of paying all or any part of the cost of any of the purposes authorized by this chapter including, without limitation, the funding or refunding of the principal, interest or other obligation on any bonds issued by the municipality or joint agency whether or not such bonds to be funded or refunded have or have not become due, the establishment or increase of reserves to secure or to pay such bonds, the provision of working capital and the payment of all other costs or expenses incident to and necessary or convenient to carry out the purposes and powers authorized by this chapter. The principal of, premium, if any, and the interest on these bonds shall be payable solely from the revenues and other available funds of the issuer pledged or specified for their payment in accordance with this chapter. The bonds of each issue shall bear interest at a rate or rates determined by the issuer and shall not be subject to any other law of this state limiting the same. The bonds of each issue shall be dated and shall mature in amounts and at a time or times, not exceeding fifty (50) years from their respective date or dates, as may be determined by the governing body of the issuer. The bonds of each issue may be made redeemable before maturity at a price or prices, and under terms and conditions, as may be fixed by the governing body of the issuer prior to issuance of the bonds. The governing body of the issuer shall determine the form and manner of execution of the bonds, including any interest coupons to be attached, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the state, provided that at least one (1) place of payment is within the state. In case any officer whose signature, or a facsimile of whose signature, appears on any bonds or coupons shall cease to hold that office before the delivery of his bond, that signature or facsimile shall nevertheless be valid and sufficient for all purposes as if he had remained in office until delivery. The governing body of the issuer may also provide for the authentication of the bonds by a trustee or fiscal agent. The bonds may be issued in coupon or in fully registered form, or both, as the governing body of the issuer may determine, and provisions may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the interchange of registered and coupon bonds. The bonds of each issue, issued by a joint agency, shall be sold either by public or negotiated sale at such price as may be determined by the joint agency.

(b) The proceeds of the bonds of each issue shall be used solely for the purposes for which such bonds have been issued, and shall be disbursed in such manner and under such restrictions, if any, as the governing body of the issuer may provide in the resolution authorizing the issuance of those bonds or in any trust agreement securing the bonds. The municipality or joint agency may issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when those bonds have been executed and are available for delivery. The municipality or joint agency may also provide for replacement of any bonds which have become mutilated, destroyed, or lost.

(c) Except as provided in section 19 of this chapter, bonds may be issued under the provisions of this chapter without obtaining the consent of the state or of any political subdivision, or of any agency, commission or instrumentality of either of them, and without any other approvals, proceedings or the happening of any conditions or things other than those approvals, proceedings, conditions or things specifically required by this chapter, and provisions of the resolution authorizing the issuance of the bonds or the trust agreement securing them.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-12Trust agreement or resolution on bondholders' rights Sec. 12. Trust Agreement, or Resolution, on Rights of Bondholders. In the discretion of the governing body of the issuer, any bonds issued under the provisions of this chapter may be secured by a trust agreement by and between the issuer and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state. That trust agreement, or the resolution providing for the issuance of bonds, may contain provisions for protecting and enforcing the rights and remedies of the bondholders and of the trustee as may be reasonable and proper and not in violation of law, and may restrict the individual right of action by bondholders. The trust agreement or the resolution providing for the issuance of bonds may contain covenants including, but not limited to, the following:

(1) the pledge of all or any part of the revenues derived or to be derived from the project or projects to be financed by the bonds or from the electric system or facilities of a municipality or joint agency, or in the case of a joint agency from the revenues received from the municipalities;

(2) the rents, rates, fees and charges to be established, maintained and collected, and the use and disposal of revenues, gifts, grants and funds received or to be received by the municipality or joint agency;

(3) the setting aside of reserves and the investment, regulation and disposition of reserves;

(4) the custody, collection, securing, investment, and payment of any moneys held for the payment of bonds;

(5) limitations or restrictions on the purposes to which the proceeds of sale of bonds then or thereafter to be issued may be applied;

(6) limitations or restrictions on the issuance of additional bonds; the terms upon which additional bonds may be issued and secured; or the refunding of outstanding or other bonds;

(7) the procedure, if any, by which the terms of any contract with bondholders may be amended, the percentage of bonds the bondholders of which must consent to an amendment, and the manner in which consent may be given;

(8) events of default and the rights and liabilities arising upon default, the terms and conditions upon which bonds issued under this chapter shall become or may be declared due before maturity, and the terms and conditions upon which the declaration and its consequences may be waived;

(9) the preparation and maintenance of a budget;

(10) the retention or employment of consulting engineers, independent auditors, and other technical consultants;

(11) limitations on or the prohibition of free service to any person, firm, limited liability company, or corporation, public or private;

(12) the acquisition and disposal of property, provided that no project or part thereof may be mortgaged by such trust agreement or resolution;

(13) provisions for insurance and for accounting reports and for their inspection and audit; and

(14) the continuing operation and maintenance of the project.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.8-1993, SEC.117.

IC 8-1-2.2-13Revenues Sec. 13. (a) A municipality or joint agency may fix, charge and collect rents, rates, fees and charges for electric power and energy and other services, facilities and commodities sold, furnished or supplied through the facilities of its electric system or its interests in any project. For so long as any bonds of a municipality or joint agency issued under this chapter are outstanding and unpaid, the rents, fees and charges shall be so fixed as to provide revenues sufficient to pay:

(1) all costs of and charges and expenses in connection with the proper operation and maintenance of the municipality's or joint agency's electric system;

(2) the municipality's or joint agency's interest in any project;

(3) all necessary repairs, replacements or renewals of the municipality's or joint agency's interest in any project;

(4) when due (whether at maturity, upon acceleration, or by sinking fund requirements), the principal, premium, if any, and interest on all bonds payable from said revenues;

(5) to create and maintain reserves as may be required by any resolution or trust agreement authorizing and securing bonds;

(6) when due (whether at maturity, upon acceleration, or by sinking fund requirements), the principal, premium, if any, and interest on all general obligation bonds issued to finance additions and improvements to its electric system;

(7) any and all amounts which the municipality may be obligated to pay from these revenues by law or contract; and

(8) any additional amounts which must be realized in order to meet the requirements of any rate covenant imposed by any resolution or trust agreement authorizing and securing bonds.

(b) Any pledge made by a municipality or joint agency pursuant to this chapter shall be valid and binding from the date the pledge is made. The revenues, securities, and other moneys so pledged and then held or thereafter received by the municipality or joint agency or any fiduciary shall immediately be subject to the lien of the pledge without any physical delivery of the lien of the pledge or further act, and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the municipality or joint agency without regard to whether such parties have notice of the lien of the pledge. The resolution or trust agreement or any financing statement, continuation statement or other instrument by which a pledge is created need not be filed or recorded in any manner.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.136-2018, SEC.58.

IC 8-1-2.2-14Trust funds Sec. 14. Trust Funds. Notwithstanding any other provisions of law to the contrary, all moneys received pursuant to the authority of this chapter, whether as proceeds from the sale of bonds or as revenues, shall be considered trust funds to be held and applied solely as provided in this chapter. The resolution authorizing the bonds of any issue, or the trust agreement securing such bonds, may provide that any of those moneys may be temporarily invested and reinvested pending the disbursements of those moneys in securities and other investments as shall be provided in the resolution or trust agreement, and shall also provide that any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as trustee of those moneys and shall hold and apply them as directed, subject to such regulation as this chapter and the resolution or trust agreement may provide.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-15Remedies Sec. 15. Remedies. Any holder of bonds issued under the provisions of this chapter or any of the bond coupons, and the trustee under any trust agreements, except to the extent that his rights are restricted by the trust agreement or the resolution authorizing the issuance of the bonds, may, (a) either at law or in equity, by suit, action, or other proceeding, protect and enforce any and all rights under the laws of the state or, to the extent permitted by law, under the trust agreement or resolution authorizing the issuance of the bonds or under any agreement or other contract executed by the municipality or joint agency pursuant to this chapter, and (b) may enforce and compel the performance of all duties required by this chapter or by the trust agreement or resolution to be performed by any municipality or joint agency or by any officer of any municipality or joint agency, including the fixing, charging, and collecting of rents, rates, fees, and charges.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-16Bond eligibility for investment Sec. 16. Bond Eligibility for Investment. Bonds issued by a municipality or joint agency under this chapter are securities in which all public officers and agencies of the state, all insurance companies, banking associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. These bonds are securities that may properly and legally be deposited with and received by any officer or agency of the state for any purpose for which the deposit of bonds or obligations of the state is now or may hereafter be authorized by law.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.136-2018, SEC.59.

IC 8-1-2.2-17Agreement of state with bondholders Sec. 17. Agreement of the State. The state hereby covenants and agrees with the holders of any bonds that so long as any bonds of a municipality or joint agency issued under this chapter are outstanding and unpaid, the state will not limit or alter the rights vested in such municipality or joint agency to acquire, construct, reconstruct, improve, enlarge, extend, own, operate and maintain its electric system or any project or interest in any project, or to establish, maintain, revise, charge, and collect the rents, rates, fees and charges referred to in this chapter and to fulfill the terms of any agreements made with the holders of the bonds or in any way impair the rights and remedies of the bondholders, until the bonds, together with interest thereon, interest on any unpaid installment of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of the bondholders, are fully paid, met and discharged.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-18Limited liability on bonds Sec. 18. Limited Liability. (a) The bonds issued under the authority of this chapter by a municipality shall not be general obligations of the municipality issuing them. The principal of, premium, if any, and interest on the bonds shall not be payable from the general funds of the municipality, nor shall they constitute a legal or equitable pledge, charge, lien, or encumbrance upon any of its property or upon any of its income, receipts, or revenues, except the funds which are pledged under the resolution authorizing the bonds or the trust agreement securing the bonds. Neither the faith and credit nor the taxing power of a municipality or of the state are, or may be, pledged for the payment of the principal of, premium, if any, or interest on the bonds, and no holder of the bonds shall have the right to compel the exercise of the taxing power by the state or a municipality or the forfeiture of any of its property in connection with any default. Every bond shall recite in substance that the principal of, premium, if any, and interest on the bond is payable solely from the revenues and other funds pledged to its payment and that the municipality is not obligated to pay the principal, premium, if any, or interest except from such revenues and other funds.

(b) The bonds issued under the authority of this chapter by a joint agency shall constitute obligations of the joint agency issuing them and neither the state nor any political subdivision thereof, other than the joint agency, shall be obligated to pay the principal of, premium, if any, or interest on the bonds and neither the faith and credit nor the taxing power of the state or any such political subdivision thereof or of any such municipality shall be pledged to the payment of the principal of, premium, if any, or interest on the bonds.

(c) Payments made under a transmission contract under section 9(a)(14) of this chapter must be paid solely from revenues of the joint agency entering into the contract. The obligation to make these payments does not constitute an indebtedness, or lend the credit of the state, a political subdivision, or a municipality to a public utility.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.81-1997, SEC.5.

IC 8-1-2.2-19Approval of commission Sec. 19. (a) Prior to the acquisition or the commencement of construction of any project to be financed by the issuance of bonds under this chapter, the municipality or municipalities or joint agency shall file a verified petition with the commission for approval of the project, for approval of participation of the municipality or municipalities or joint agency in the project, and for approval of any bonds to be issued under this chapter. If the commission shall determine:

(1) that the participation of the municipality or municipalities or joint agency in the project is economically and technically feasible;

(2) that the project will be integrated with existing or planned transmission line facilities in the state in a manner that will avoid economic and physical duplication of existing or planned transmission line facilities;

(3) that the municipality or municipalities or joint agency own or have access to the transmission facilities to transmit such power and energy from the project to the municipality or municipalities or joint agency;

(4) that for a project involving a coal-consuming facility, the facility utilizes Indiana coal or is justified, because of economic considerations or governmental requirements, in utilizing non-Indiana coal;

(5) that for a project involving the acquisition or participation in the ownership of an electric generating facility located outside Indiana, the municipality, municipalities, or joint agency has been unable to acquire or participate in the ownership of a comparable generating facility in Indiana at a comparable cost and unable to purchase sufficient amounts of electricity in Indiana at a comparable cost giving due consideration to all factors, including but not limited to the length and terms of available purchases and the expected useful life of the facility;

(6) that for a project involving the acquisition or participation in the ownership of an electric generating facility located outside Indiana, acquisition of or participation in the ownership of the facility provides the municipality, municipalities, or joint agency with greater economic benefits than either:

(A) the acquisition or participation in the ownership of a comparable generating facility in Indiana available for ownership; or

(B) the purchase of sufficient amounts of electricity in Indiana at a comparable cost giving due consideration to all factors, including but not limited to the length and terms of available purchases and the expected useful life of the facility; and

(7) that the determinations of the governing body or bodies with respect to the items listed in section 3(c) or 8(b) of this chapter have been or should be approved;

then the commission shall issue an order approving the project and the participation of the municipality or municipalities or joint agency in the project and the issuance of bonds by the municipality or municipalities or by the joint agency. For the purpose of enabling it to determine whether it should issue such an order, the commission shall make such inquiry or investigation, hold such hearings, and examine such witnesses, books, papers, documents, or contracts as it may deem of importance in enabling it to reach a determination. The determinations required by this subsection are in addition to the requirements of IC 8-1-8.5-4 and IC 8-1-8.5-5.

(b) A joint agency is not a public utility (as defined in IC 8-1-2). However, with respect to proceedings initiated by a joint agency under this section, the commission is given jurisdiction to proceed in the same manner and with like power as is provided by IC 8-1-2 in the case of public utilities (as defined in IC 8-1-2).

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.82-1988, SEC.5; P.L.54-1992, SEC.3; P.L.81-1997, SEC.6.

IC 8-1-2.2-20Acquisition and construction contracts Sec. 20. Acquisition and Construction Contracts. A municipality or joint agency may contract for the planning, acquisition, construction, reconstruction, operation, maintenance, repair, extension, and improvement of generation, distribution, or transmission facilities within or without its corporate limits or those of its members, or may contract with other public or private entities to perform these functions, without advertising for bids or securing performance and payment bonds, except to the extent that its governing body determines that these actions are desirable in furtherance of the purposes of this chapter. Except as otherwise provided by this section, no contract shall be invalid or unenforceable by reason of nonperformance of the conditions required by any other law relating to public contracts.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.36-2017, SEC.5.

IC 8-1-2.2-21Tax exempt status Sec. 21. Tax Exempt Status. Bonds, their transfer and the income therefrom (including any profit made on the sale thereof), shall at all times be free from taxation by the state or any political subdivision or any agency of either thereof, excepting inheritance or gift taxes.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-22Payments in lieu of taxes Sec. 22. Payments in Lieu of Taxes. That part of a project owned by a municipality or municipalities or joint agency shall be exempt from property taxes. However, each municipality participating in a project or joint agency owning all or any part of a project shall, in lieu of property taxes, pay to any governmental unit authorized to levy property taxes the amount which would be assessed as taxes on real and personal property of a project if such project were otherwise subject to valuation and assessment. Such payments in lieu of taxes shall be due and shall bear interest if unpaid, as in the cases of taxes on other property. Payments in lieu of taxes made under this section shall be treated in the same manner as taxes for purposes of all procedural and substantive provisions of law.

Except as expressly provided in this section with respect to jointly owned projects, no other property of a municipality used or useful in the generation, transmission and distribution of electric power and energy shall be subject to payments in lieu of taxes.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-23Personnel Sec. 23. Personnel. Personnel employed or appointed by a municipality or joint agency to work on a project shall have the same authority, rights, privileges and immunities which officers, agents and employees of municipalities enjoy, when they are acting within the scope of their authority or in the course of their employment.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-24Dissolution of joint agencies Sec. 24. Dissolution of Joint Agencies. Whenever the board of commissioners of a joint agency and the governing bodies of its member municipalities by resolution or ordinance determine that the purposes for which the joint agency was formed have been substantially fulfilled and that all bonds issued and all other obligations incurred by the joint agency have been fully paid or satisfied or provision for the payment thereof has been made in accordance with the terms of the resolution or trust agreement securing the same, the board of commissioners and governing boards may declare the joint agency to be dissolved. On the effective date of the resolution or ordinance, the title to all funds and other property owned by the joint agency at the time of the dissolution shall vest in the member municipalities of the joint agency as provided in this chapter and the bylaws of the joint agency.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-25Annual reports Sec. 25. Annual Reports. The municipal utilities or joint agencies possessing ownership interests in a project shall, following the closing of each fiscal year, submit a consolidated or combined annual report of their activities (including the activities of any joint agency) with respect to such project for the preceding year to the respective governing bodies of such municipalities and to the commission. Each report shall set forth in a form prescribed by the commission a complete operating and financial statement covering the operations of the project during the year. The municipalities or joint agencies possessing ownership interests in a project shall cause an audit of the books of record and accounts relating to such project (including any joint agency) to be made at least once in each year by a certified public accountant or accountants and the cost of the audit may be treated as a cost of construction of the project, or otherwise as part of the expenses of the administration of the project covered by such audit.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-26Government grants and loans Sec. 26. Government Grants and Loans. The governing body of any municipality or the joint agency is hereby authorized to make application and to enter into contracts for and to accept grants-in-aid and loans from the federal and state governments and their agencies for planning, acquiring, constructing, expanding, maintaining and operating any project or facility, or participating in any research or development program, or performing any function which such municipality or joint agency may be authorized by general or local law to provide or perform.

In order to exercise the authority granted by this section, the governing board of any municipality or joint agency may:

(1) enter into and carry out contracts with the state or federal government or any agency or institution thereof under which such government, agency or institution grants financial or other assistance to the municipality or joint agency;

(2) accept such assistance or funds as may be granted or loaned by the state or federal government with or without such a contract;

(3) agree to and comply with any reasonable conditions which are imposed upon such grants or loans; and

(4) make expenditures from any funds so granted.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-27Eminent domain Sec. 27. (a) Municipalities participating in a project and joint agencies have the power of eminent domain to the extent and in the same manner and under the same laws as municipalities or public utilities under IC 32-24-1 or IC 8-1-8. However, a municipality or joint agency exercising the power of eminent domain for a purpose authorized by this chapter may not condemn an existing facility used for the generation, transmission, or distribution of electric power and energy.

(b) The commission may order that:

(1) the lines and rights-of-way of any public utility or subscriber owned utility, or municipality or municipalities participating in a joint project or joint agency may be crossed by any municipality participating in a joint project or joint agency; or

(2) the lines of any municipalities participating in a joint project or joint agency may be crossed by any public utility or subscriber owned utility.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.2-2002, SEC.35.

IC 8-1-2.2-28Liability of officers Sec. 28. Liability of Officers. No officer of any municipality or joint agency or person or persons acting in their behalf, while acting within the scope of their authority, shall be subject to any personal liability or accountability by reason of his carrying out any of the powers expressly or impliedly given in this chapter.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-29Construction with other laws Sec. 29. Other Statutes. This chapter shall be considered to provide a complete method for the performance of things so authorized, and shall be considered and construed to be supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing. However, insofar as the provisions of this chapter are inconsistent with the provisions of any other general, special or local law, the provisions of this chapter shall be controlling. Nothing in this chapter may be construed to authorize the issuance of bonds for the purpose of financing facilities to be owned by any private corporation and the issuance of bonds to finance an interest in any project undertaken jointly with a private corporation shall not be construed to be the issuance of bonds for the purpose of financing facilities to be owned by any private corporation.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-30Severability Sec. 30. Severability of Invalid Provisions. Any provisions of this chapter which may be determined by competent authority to be prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

As added by Acts 1980, P.L.68, SEC.1.

IC 8-1-2.2-31Member participating by electronic means of communication Sec. 31. (a) Except as provided in subsection (e), at least a quorum of the board must be physically present at the place where a meeting of the board of commissioners of a joint agency is conducted.

(b) A member of the board of commissioners of a joint agency may participate in a meeting of the board of commissioners by using a means of electronic communication that permits:

(1) all other members participating in the meeting; and

(2) all members of the public physically present at the place where the meeting is conducted;

to simultaneously communicate with each other during the meeting.

(c) A member of the board of commissioners of a joint agency who participates in a meeting by using a means of communication described in subsection (b) is considered to be present at the meeting.

(d) The memoranda of a meeting of the board of commissioners of a joint agency prepared under IC 5-14-1.5-4 must state the name of:

(1) each member who was physically present at the place where the meeting was conducted;

(2) each member who participated in the meeting by using a means of communication described in subsection (b); and

(3) each member who was absent.

(e) This subsection applies if the governor declares a disaster emergency under IC 10-14-3-12, or a local disaster emergency is declared under IC 10-14-3-29. The board of commissioners of a joint agency may meet without any members of the board of commissioners being physically present at the meeting until ninety (90) days after the disaster emergency or local disaster emergency is terminated, if the members participate by means of electronic communication in the manner set forth in subsection (b). A member of the board of commissioners of a joint agency who participates in a meeting in accordance with this subsection is considered to be present at the meeting. The board shall prepare a memoranda of the meeting as set forth in subsection (d).

As added by P.L.179-2007, SEC.10. Amended by P.L.88-2021, SEC.9.

IC 8-1-2.3Chapter 2.3. Electricity Suppliers' Service Area Assignments

8-1-2.3-1Legislative findings and declaration of policy 8-1-2.3-2Definitions 8-1-2.3-3Assigned service areas 8-1-2.3-4Service area rights 8-1-2.3-5Effect of incorporation, annexation, consolidation, or merger 8-1-2.3-6Change of service area boundaries

IC 8-1-2.3-1Legislative findings and declaration of policy Sec. 1. Legislative Findings and Declaration of Policy. It is declared to be in the public interest that, in order to encourage the orderly development of coordinated statewide electric service at retail, to eliminate or avoid unnecessary duplication of electric utility facilities, to prevent the waste of material and resources, and to promote economical, efficient, and adequate electric service to the public, the currently unincorporated areas of Indiana shall be divided into designated geographic areas within which an assigned electricity supplier has the sole right to furnish retail electric service to customers.

As added by Acts 1980, P.L.69, SEC.1.

IC 8-1-2.3-2Definitions Sec. 2. (a) The definitions in this section apply throughout this chapter.

(b) "Electricity supplier" means a public utility, a local district rural electric membership corporation, or a municipally owned electric utility which furnishes retail electric service to the public.

(c) "Retail electric service" means electric service furnished to a customer for ultimate consumption, but does not include wholesale electric service furnished by an electricity supplier to another electricity supplier for resale.

(d) "Existing electric distribution line" means an electric conductor which on January 1, 1979, was being used for the distribution or delivery of retail electric service.

(e) "Assigned service area" means the designated geographic area within the boundaries of which an electricity supplier is authorized to furnish all retail electric service, as provided in this chapter.

(f) "Municipality" means a city or town.

(g) "Existing municipal limits" means the corporate boundaries of any municipality as such boundaries existed on January 1, 1979.

As added by Acts 1980, P.L.69, SEC.1. Amended by P.L.23-1988, SEC.30.

IC 8-1-2.3-3Assigned service areas Sec. 3. Assigned Service Areas. (a) Unless otherwise agreed upon between adjacent electricity suppliers, all areas inside existing municipal limits are hereby assigned to the electricity supplier serving a plurality of the electric meters within the municipality on January 1, 1979.

(b) Where two (2) or more electricity suppliers are rendering retail electric service within existing municipal limits, those suppliers shall take one (1) or more of the following actions to assure that only one (1) electricity supplier shall serve within the existing municipal limits:

(1) The electricity supplier serving a plurality of electric meters within the municipality on January 1, 1979, may purchase the electric utility property of any other electricity supplier which is devoted to retail electric service and is located within the existing municipal limits, at its then reproduction cost new depreciated value plus severance damages.

(2) At the option of the electricity supplier serving a plurality of electric meters within the municipality on January 1, 1979, and subject to commission approval, the electricity suppliers may exchange all or part of the electric utility property located outside of the existing municipal limits for the electric utility property located within the existing municipal limits.

(3) If the affected electricity suppliers do not agree upon a purchase or exchange of the electric utility property before September 1, 1980, the commission shall determine the appropriate purchase price for the electric utility property according to subsection (b)(1) of this section.

(c) On or before July 1, 1981, each electricity supplier in each county shall exchange with all other electricity suppliers in the county a map or maps showing all of its existing electric distribution lines in the county which are relevant to the assignment of service areas outside existing municipal limits and any other information it considers useful in determining the boundaries of an assigned service area.

(d) Until otherwise agreed upon between electricity suppliers or ordered by the commission under section 3(g) of this chapter, the boundaries of the assigned service area for each adjacent electricity supplier outside existing municipal limits shall be set as a line equidistant from its existing electric distribution lines and the nearest existing electric distribution lines of any other electricity supplier; the resulting assigned service area outside existing municipal limits of an electricity supplier will be that area which is closer to the existing electric distribution lines of a supplier than to the existing electric distribution lines of any other electricity supplier.

(e) Each electricity supplier shall negotiate with all adjacent electricity suppliers as soon as practicable in an effort to agree on the boundaries of the service areas to be assigned.

(f) Maps depicting the boundaries of such proposed service area assignments shall be prepared by each electricity supplier for each county in which the electricity supplier provides electric retail service, and shall be filed, together with a petition requesting approval and assignment of such service areas with the commission on or before July 1, 1982, or on such other date as the commission may determine, but in any event on or before March 1, 1983. Thereafter, the commission shall hold a public hearing regarding the proposed service areas, after publication of notice of the hearing at least ten (10) days before the hearing in the county or counties in which such proposed service areas are located. If the commission finds that the proposed service areas comply with this chapter, it shall issue an order within twelve (12) months of the filing of the petition and related maps, approving and assigning the service areas as designated on the prepared maps.

(g) If two (2) or more adjacent electricity suppliers cannot agree upon the boundary line or lines between their respective proposed service areas on or before July 1, 1982, or such other date as the commission may determine, but in any event on or before March 1, 1983, the commission on its own motion or upon petition of one (1) of the electricity suppliers shall hold a public hearing regarding the location of the boundary line or lines, after publication of notice of the hearing at least ten (10) days before the hearing in the county or counties in which the boundary line or lines are located. The commission shall determine the boundary line or lines based as nearly as practicable upon a line equidistant between the existing electric distribution lines of the adjacent electricity suppliers, consistent with good utility practice and public convenience and necessity. The commission shall issue an order determining the boundary line or lines and assigning the service areas, and shall direct the parties to file with the commission maps showing such assigned service areas. If the commission determines that the maps comply with its order, it shall issue a supplemental order approving the assigned service areas as designated on the maps.

(h) Once established according to this section, the boundaries of assigned service areas may not be changed except as provided in section 6 of this chapter.

As added by Acts 1980, P.L.69, SEC.1. Amended by Acts 1982, P.L.71, SEC.1.

IC 8-1-2.3-4Service area rights Sec. 4. Service Area Rights. (a) As long as an electricity supplier continues to provide adequate retail service, it shall have the sole right to furnish retail electric service to each present and future consumer within the boundaries of its assigned service area and no other electricity supplier shall render or extend retail electric service within its assigned service area unless the electricity supplier with the sole right consents thereto in writing and the commission approves. This subsection does not prevent the commission from exercising its authority under IC 8-1-2-69.

(b) If an electricity supplier unlawfully renders or extends retail electric service within the assigned service area of another electricity supplier, the electricity supplier which has the sole right to furnish retail electric service in that assigned service area may bring an action in the circuit or superior court of the county where such assigned service area is located to enjoin the other electricity supplier from rendering or extending such unlawful retail electric service.

If a violation is proved, the violator shall pay to the aggrieved electricity supplier the gross revenues derived by the violator from the sale of electric service within the assigned service area of the aggrieved electricity supplier, all witness fees, court costs and reasonable attorneys' fees incurred in any litigation brought to enforce this section. Payment of damages, fees and costs does not entitle a violator to furnish retail electric service in such assigned service area. All such actions or proceedings must be brought within three (3) years after the violation occurs.

As added by Acts 1980, P.L.69, SEC.1.

IC 8-1-2.3-5Effect of incorporation, annexation, consolidation, or merger Sec. 5. Effect of Incorporation, Annexation, Consolidation or Merger. After January 1, 1979, the inclusion by incorporation, annexation, consolidation, or merger of any part of the assigned service area of an electricity supplier does not impair or affect the rights of an electricity supplier to continue to solely furnish and extend retail electric service throughout any part of its assigned service area, except as provided in section 6 of this chapter.

As added by Acts 1980, P.L.69, SEC.1.

IC 8-1-2.3-6Change of service area boundaries Sec. 6. (a) The boundaries of the assigned service areas of electricity suppliers may not be changed except under one (1) of the following circumstances:

(1) Except as provided in subsection (b), if a municipality which owns and operates an electric utility system furnishing retail electric service to the public annexes an area beyond the assigned service area of its municipally owned electric utility, the municipally owned electric utility may petition the commission to change the assigned service area of the municipally owned electric utility to include the annexed area, according to the following procedures:

(A) The municipally owned electric utility shall file its petition with the commission not later than sixty (60) days after the annexation becomes effective. The petition must include a certified copy of the annexation ordinance, which serves as conclusive evidence that the area has been lawfully annexed and is part of the municipality. After the filing of a petition under this subdivision, the commission shall promptly enter an order changing the assigned service area facet maps of the municipally owned electric utility and incumbent electricity suppliers to include the annexed area within the assigned service area of the municipally owned electric utility and giving the right to serve and immediate possession to the municipally owned electric utility. The commission order is enforceable in court pending an appeal of that order. An appellant from a court order enforcing a commission order under this subdivision is not entitled to a stay of the court order pending appeal. However, this subdivision does not apply to incorporations, consolidations, mergers, or annexations that are under IC 36-4-3-4(a)(3), IC 36-4-3-4(b), IC 36-4-3-4(h), or IC 36-4-3-4.1 or that are not contiguous under IC 36-4-3-13(b) or IC 36-4-3-13(c).

(B) Not later than thirty (30) days after filing a petition under this subdivision, the municipally owned electric utility shall determine for each affected incumbent electricity supplier and pay to that supplier an amount not less than the value of all the electric utility property of the incumbent electricity supplier that is devoted to furnishing retail electric service within the additional assigned service area at its then reproduction cost new depreciated value. In addition, the municipally owned electric utility shall pay the incumbent electricity supplier severance damages in an amount equal to:

(i) the value of the incumbent electricity supplier's distribution and substation facilities dedicated to and located within the annexed area or relocated by reason of the annexation or an amount equal to two and one-half (2 1/2) times the incumbent electricity supplier's gross revenues from electricity sales in the annexed area during the twelve (12) month period immediately preceding the date the annexation ordinance became effective, whichever is greater; plus

(ii) if additional permanent service locations or service accounts are established in the annexed area during the five (5) year period beginning on the effective date of the annexation ordinance, one-tenth of one cent ($0.001) for each kilowatt hour of electricity sold to each of those permanent service locations or service accounts for sales that occur during a five (5) year period beginning on the date each service location or service account is established, up to a maximum of one hundred seventy thousand (170,000) kilowatt hours per service account or service location for each monthly billing period.

However, the municipally owned electric utility is not required to pay severance damages under item (ii) if, at the time each annual payment otherwise would accrue, it is purchasing all of its requirements for electric power and energy, except for generation directly provided by the municipally owned electric utility or by a customer, from the incumbent electricity supplier. Severance damages must be paid not later than thirty (30) days after the end of each calendar year in which severance damages have accrued. The municipally owned electric utility and incumbent electricity suppliers shall cooperate to calculate the amount of any severance damages and shall furnish to each other all information and records reasonably necessary for the determination and verification of severance damages. If the municipally owned electric utility and incumbent electricity suppliers cannot agree on the amount of severance damages the municipally owned electric utility is to pay, the commission shall determine the amount and order payment in accordance with this clause. Not later than twenty (20) days after making a payment, the municipally owned electric utility shall certify to the commission and to any affected incumbent electricity supplier that it has paid the amounts required under this clause.

(C) If the municipally owned electric utility fails to make a payment under clause (B), an affected incumbent electricity supplier may, not later than sixty (60) days after the payment is due and after giving the municipally owned electric utility reasonable notice of and an opportunity to cure the defect, file with the commission a petition alleging that a payment due under clause (B) has not been made. If the commission finds after notice and hearing that any payments owed to the incumbent electricity supplier have not been timely and fully paid, the commission shall order the municipally owned electric utility to pay:

(i) the delinquent payments by a date determined by the commission;

(ii) accrued interest at the rate set forth in IC 24-4.6-1-102; and

(iii) the incumbent electricity supplier's costs of filing and prosecuting a petition under this clause.

If the commission finds against the incumbent electricity supplier, it shall order the incumbent electricity supplier to pay the costs incurred by the municipally owned electric utility in defending against the incumbent electricity supplier's petition.

(D) A certified copy of a final commission order that:

(i) determines and orders the payment of severance damages under clause (B); or

(ii) orders the payment of delinquent payments, interest, and costs under clause (C);

may be filed with the clerk of the circuit or superior court of any county in which part or all of the annexed area is located. A commission order that is filed in a court under this clause may be enforced and executed in the same manner as if it were a final judgment of that court.

(2) Upon mutual agreement of the affected electricity suppliers and approval of the commission. If notice of a verified request for a change of boundary lines by mutual agreement under this subdivision is published in a newspaper of general circulation in every county in which the boundary lines are located and an affected electricity customer does not request a hearing within twenty (20) days of the last date of publication, the commission may approve the change without a hearing. The commission shall approve a boundary line change under this subdivision unless the commission finds, after a public hearing, that the change would cause:

(A) duplication of electric utility facilities;

(B) waste of materials or resources; or

(C) uneconomic, inefficient, or inadequate electric service to the public.

(3) In the case where a landowner owns a single tract of land that is intersected by the boundary lines of two (2) or more assigned service areas, and retail electric service can best be supplied by only one (1) electricity supplier, or in the case where a customer or customers are housed in a single structure or constitute a single governmental, industrial, or institutional operation, and the electricity suppliers involved are unable to agree which shall furnish the electric service, any of the electricity suppliers may submit the matter to the commission for its determination based upon public convenience and necessity. If, after notice and hearing, the commission determines that one (1) or more electricity suppliers are to supply the required retail electric service and the boundaries of an assigned service area are to be changed, the assigned service area maps of the electricity suppliers shall be changed to reflect the new boundaries.

(b) After May 19, 2015, a municipality that:

(1) owns and operates an electric utility system furnishing retail electric service to the public; and

(2) annexes an area beyond the assigned service area of its municipally owned electric utility;

may not petition the commission to change the assigned service area of the municipally owned electric utility to include the annexed area according to the procedures set forth in subsection (a)(1). After May 19, 2015, the boundaries of the assigned service areas of electricity suppliers may be changed only according to the procedures set forth in subsection (a)(2) or (a)(3), as applicable. This subsection does not affect a petition that is filed with the commission under subsection (a)(1) before May 20, 2015, and pending before the commission on May 20, 2015.

As added by Acts 1980, P.L.69, SEC.1. Amended by P.L.91-1985, SEC.1; P.L.19-1986, SEC.27; P.L.79-1996, SEC.1; P.L.255-1997(ss), SEC.7; P.L.217-1999, SEC.1; P.L.56-2002, SEC.1; P.L.31-2015, SEC.1.

IC 8-1-2.4Chapter 2.4. Alternate Energy Production, Cogeneration, and Small Hydro Facilities

8-1-2.4-1Development of alternate energy production facilities; policy 8-1-2.4-2Definitions 8-1-2.4-3Participation of utilities; encouragement 8-1-2.4-4Electric and steam utilities required to enter into purchase contracts; rates for new and existing facilities; utilities not required to construct additional facilities or distribute power from private generation projects; commission review of utilities' rates for supplemental or backup power 8-1-2.4-5Utilities excepted; grounds 8-1-2.4-6Private generation projects; sale of excess output; interconnection

IC 8-1-2.4-1Development of alternate energy production facilities; policy Sec. 1. It is the policy of this state to encourage the development of alternate energy production facilities, cogeneration facilities, and small hydro facilities in order to conserve our finite and expensive energy resources and to provide for their most efficient utilization.

As added by Acts 1982, P.L.72, SEC.1.

IC 8-1-2.4-2Definitions Sec. 2. (a) The definitions in this section apply throughout this chapter.

(b) "Alternate energy production facility" means:

(1) any solar, wind turbine, waste management, resource recovery, refuse-derived fuel, organic waste biomass, or wood burning facility;

(2) any land, system, building, or improvement that is located at the project site and is necessary or convenient to the construction, completion, or operation of the facility; and

(3) the transmission or distribution facilities necessary to conduct the energy produced by the facility to users located at or near the project site.

(c) "Cogeneration facility" means:

(1) a facility that:

(A) simultaneously generates electricity and useful thermal energy; and

(B) meets the energy efficiency standards established for cogeneration facilities by the Federal Energy Regulatory Commission under 16 U.S.C. 824a-3;

(2) any land, system, building, or improvement that is located at the project site and is necessary or convenient to the construction, completion, or operation of the facility; and

(3) the transmission or distribution facilities necessary to conduct the energy produced by the facility to users located at or near the project site.

(d) "Electric utility" means any public utility or municipally owned utility that owns, operates, or manages any electric plant.

(e) "Small hydro facility" means:

(1) a hydroelectric facility at a dam;

(2) any land, system, building, or improvement that is located at the project site and is necessary or convenient to the construction, completion, or operation of the facility; and

(3) the transmission or distribution facilities necessary to conduct the energy produced by the facility to users located at or near the project site.

(f) "Steam utility" means any public utility or municipally owned utility that owns, operates, or manages a steam plant.

(g) "Private generation project" means a cogeneration facility that has an electric generating capacity of eighty (80) megawatts or more and is:

(1) primarily used by its owner for the owner's industrial, commercial, heating, or cooling purposes; or

(2) a qualifying facility for purposes of the Public Utility Regulatory Policies Act of 1978 that produces electricity and useful thermal energy that is primarily used by a single host operation for industrial, commercial, heating, or cooling purposes and is:

(A) located on the same site as the host operation; or

(B) determined by the commission to be a facility that:

(i) satisfies the requirements of this chapter;

(ii) is located on or contiguous to the property on which the host operation is sited; and

(iii) is directly integrated with the host operation.

As added by Acts 1982, P.L.72, SEC.1. Amended by P.L.23-1988, SEC.31; P.L.222-2014, SEC.2; P.L.264-2017, SEC.2.

IC 8-1-2.4-3Participation of utilities; encouragement Sec. 3. The commission shall encourage the participation of utilities in alternate energy production facilities, cogeneration facilities, small hydro facilities, and private generation projects.

As added by Acts 1982, P.L.72, SEC.1. Amended by P.L.222-2014, SEC.3.

IC 8-1-2.4-4Electric and steam utilities required to enter into purchase contracts; rates for new and existing facilities; utilities not required to construct additional facilities or distribute power from private generation projects; commission review of utilities' rates for supplemental or backup power Sec. 4. (a) Subject to section 5 of this chapter, the commission shall require electric utilities and steam utilities to enter into long term contracts to:

(1) purchase or wheel electricity or useful thermal energy from alternate energy production facilities, cogeneration facilities, or small hydro facilities located in the utility's service territory, under the terms and conditions that the commission finds:

(A) are just and economically reasonable to the corporation's ratepayers;

(B) are nondiscriminatory to alternate energy producers, cogenerators, and small hydro producers; and

(C) will further the policy stated in section 1 of this chapter; and

(2) provide for the availability of supplemental or backup power to alternate energy production facilities, cogeneration facilities, or small hydro facilities on a nondiscriminatory basis and at just and reasonable rates.

(b) Upon application by the owner or operator of any alternate energy production facility, cogeneration facility, or small hydro facility or any interested party, the commission shall establish for the affected utility just and economically reasonable rates for electricity purchased under subsection (a)(1). The rates shall be established at levels sufficient to stimulate the development of alternate energy production, cogeneration, and small hydro facilities in Indiana, and to encourage the continuation of existing capacity from those facilities.

(c) The commission shall base the rates for new facilities or new capacity from existing facilities on the following factors:

(1) The estimated capital cost of the next generating plant, including related transmission facilities, to be placed in service by the utility.

(2) The term of the contract between the utility and the seller.

(3) A levelized annual carrying charge based upon the term of the contract and determined in a manner consistent with both the methods and the current interest or return requirements associated with the utility's new construction program.

(4) The utility's annual energy costs, including current fuel costs, related operation and maintenance costs, and any other energy-related costs considered appropriate by the commission.

(d) The commission shall base the rates for existing facilities on the factors listed in subsection (c). However, the commission shall also consider the original cost less depreciation of existing facilities and may establish a rate for existing facilities that is less than the rate established for new facilities.

(e) In the case of a utility that purchases all or substantially all of its electricity requirements, the rates established under this section must be equal to the current cost to the utility of similar types and quantities of electrical service.

(f) In lieu of the other procedures provided by this section, a utility and an owner or operator of an alternate energy production facility, cogeneration facility, or small hydro facility may enter into a long term contract in accordance with subsection (a) and may agree to rates for purchase and sale transactions. A contract entered into under this subsection must be filed with the commission in the manner provided by IC 8-1-2-42.

(g) This section does not require an electric utility or steam utility to:

(1) construct any additional facilities unless those facilities are paid for by the owner or operator of the affected alternate energy production facility, cogeneration facility, or small hydro facility; or

(2) distribute, transmit, deliver, or wheel electricity from a private generation project.

As added by Acts 1982, P.L.72, SEC.1. Amended by P.L.264-2017, SEC.3; P.L.156-2020, SEC.34.

IC 8-1-2.4-5Utilities excepted; grounds Sec. 5. (a) The commission may not require an electric utility or steam utility to purchase or wheel electricity or useful thermal energy from an alternate energy production facility or cogeneration facility unless the facility:

(1) has an electric generating capacity of not more than eighty (80) megawatts;

(2) produces electricity, gas, or useful thermal energy for industrial, commercial, or residential purposes; and

(3) is owned or operated by an individual, firm, copartnership, corporation, company, association, joint stock association, city, town, or county that:

(A) is not primarily engaged in the business of producing or selling electricity, gas, or useful thermal energy other than electricity, gas, or useful thermal energy sold solely from alternate energy production facilities, cogeneration facilities, or small hydro facilities; and

(B) does not sell electricity, gas, or useful thermal energy to residential users other than the tenants or the owner or operator of the facility.

(b) The commission may not require an electric utility or steam utility to purchase or wheel electricity or useful thermal energy from a small hydro facility unless the facility has an electric generating capacity of not more than eighty (80) megawatts.

As added by Acts 1982, P.L.72, SEC.1.

IC 8-1-2.4-6Private generation projects; sale of excess output; interconnection Sec. 6. (a) The owner of a private generation project may sell excess electric output generated by the private generation project to an electric utility as provided in subsection (b) to the extent the sale is consistent with applicable federal and state laws, rules, and regulations.

(b) An electric utility may purchase excess output described in subsection (a) from a private generation project that is located entirely in the assigned service area of the electric utility. The terms of the purchase must be consistent with the integrated resource plan filed with the commission by the electric utility under 170 IAC 4-7, including avoided energy and capacity costs determined in the integrated resource plan.

(c) An electric utility is entitled to recover costs associated with the purchase of energy and capacity under subsection (b) under IC 8-1-2-42(d).

(d) An electric utility shall interconnect with a private generation project upon request, subject to reasonable considerations of safety, reliability, and financial assurance. The interconnection of a private generation project with an electric utility's distribution system is governed by 170 IAC 4-4.3. The interconnection of a private generation project with an electric utility's transmission system is governed by federal law and regulation, including orders, regulations, and transmission tariffs approved by the Federal Energy Regulatory Commission.

(e) Upon the request of the owner of a private generation project, an electric utility shall provide the private generation project with back up, maintenance, and supplementary power. The electric utility shall charge rates that:

(1) are based on the electric utility's costs;

(2) do not discriminate against:

(A) the private generation project; or

(B) other customers of the electric utility with load characteristics similar to the private generation project; and

(3) do not create subsidies for:

(A) the private generation project; or

(B) retail customers of the electric utility.

As added by P.L.222-2014, SEC.4.

IC 8-1-2.5Chapter 2.5. Alternative Utility Regulation

8-1-2.5-1Legislative findings 8-1-2.5-2"Energy utility" defined 8-1-2.5-3"Retail energy service" defined 8-1-2.5-4Petition from energy utility requesting relief 8-1-2.5-5Commission's order declining jurisdiction 8-1-2.5-6Powers of commission in approving rates and services; alternative regulatory plan 8-1-2.5-6.5Commission study of performance based ratemaking for electricity suppliers; topics for study; stakeholder comments; recommendations in 2025 annual report 8-1-2.5-7Termination of plan; exercise of jurisdiction over energy utility 8-1-2.5-8Commencement of proceedings 8-1-2.5-9Annual commission report to interim study committee; annual interim study committee report to legislative council 8-1-2.5-10Implementation of chapter 8-1-2.5-11Limitations on chapter's applicability 8-1-2.5-12Wages of independent contractor

IC 8-1-2.5-1Legislative findings Sec. 1. The Indiana general assembly hereby declares the following:

(1) That the provision of safe, adequate, efficient, and economical retail energy services is a continuing goal of the commission in the exercise of its jurisdiction.

(2) That competition is increasing in the provision of energy services in Indiana and the United States.

(3) That traditional commission regulatory policies and practices, and certain existing statutes are not adequately designed to deal with an increasingly competitive environment for energy services and that alternatives to traditional regulatory policies and practices may be less costly.

(4) That an environment in which Indiana consumers will have available state-of-the-art energy services at economical and reasonable costs will be furthered by flexibility in the regulation of energy services.

(5) That flexibility in the regulation of energy services providers is essential to the well-being of the state, its economy, and its citizens.

(6) That the public interest requires the commission to be authorized to issue orders and to formulate and adopt rules and policies that will permit the commission in the exercise of its expertise to flexibly regulate and control the provision of energy services to the public in an increasingly competitive environment, giving due regard to the interests of consumers and the public, and to the continued availability of safe, adequate, efficient, and economical energy service.

As added by P.L.108-1995, SEC.3.

IC 8-1-2.5-2"Energy utility" defined Sec. 2. As used in this chapter, "energy utility" means a public utility or a municipally owned utility within the meaning of IC 8-1-2-1, or a local district corporation or a general district corporation within the meaning of IC 8-1-13-23, engaged in the production, transmission, delivery, or furnishing of heat, light, or power.

As added by P.L.108-1995, SEC.3.

IC 8-1-2.5-3"Retail energy service" defined Sec. 3. As used in this chapter, "retail energy service" means energy service furnished by an energy utility to a customer for ultimate consumption, including energy service by a general district corporation to a local district corporation within the meaning of IC 8-1-13-23. The term does not include wholesale energy service furnished by an energy utility for resale (other than energy service by a general district corporation to a local district corporation) to another energy utility, a cooperatively owned electric utility, or a municipally owned electric utility.

As added by P.L.108-1995, SEC.3.

IC 8-1-2.5-4Petition from energy utility requesting relief Sec. 4. Section 5 or 6, or both, of this chapter do not apply to an energy utility unless the energy utility voluntarily submits a verified petition to the commission stating the energy utility's election to become subject to such section or sections. A request for relief by an energy utility under section 5 of this chapter shall be limited to jurisdiction over the energy utility or its retail energy services, including rates, charges, or both. A request for relief by an energy utility under section 6 of this chapter shall be limited to approval of its energy services or the establishment of its rates and charges, or both.

As added by P.L.108-1995, SEC.3.

IC 8-1-2.5-5Commission's order declining jurisdiction Sec. 5. (a) Notwithstanding any other law or rule adopted by the commission, except those cited, or rules adopted that pertain to those cited, in section 11 of this chapter, on the request of an energy utility electing to become subject to this section, the commission may enter an order, after notice and hearing, that the public interest requires the commission to commence an orderly process to decline to exercise, in whole or in part, its jurisdiction over either the energy utility or the retail energy service of the energy utility, or both.

(b) In determining whether the public interest will be served, the commission shall consider the following:

(1) Whether technological or operating conditions, competitive forces, or the extent of regulation by other state or federal regulatory bodies render the exercise, in whole or in part, of jurisdiction by the commission unnecessary or wasteful.

(2) Whether the commission's declining to exercise, in whole or in part, its jurisdiction will be beneficial for the energy utility, the energy utility's customers, or the state.

(3) Whether the commission's declining to exercise, in whole or in part, its jurisdiction will promote energy utility efficiency.

(4) Whether the exercise of commission jurisdiction inhibits an energy utility from competing with other providers of functionally similar energy services or equipment.

As added by P.L.108-1995, SEC.3.

IC 8-1-2.5-6Powers of commission in approving rates and services; alternative regulatory plan Sec. 6. (a) Notwithstanding any other law or rule adopted by the commission, except those cited, or rules adopted that pertain to those cited, in section 11 of this chapter, in approving retail energy services or establishing just and reasonable rates and charges, or both for an energy utility electing to become subject to this section, the commission may do the following:

(1) Adopt alternative regulatory practices, procedures, and mechanisms, and establish rates and charges that:

(A) are in the public interest as determined by consideration of the factors described in section 5 of this chapter; and

(B) enhance or maintain the value of the energy utility's retail energy services or property;

including practices, procedures, and mechanisms focusing on the price, quality, reliability, and efficiency of the service provided by the energy utility.

(2) Establish rates and charges based on market or average prices, price caps, index based prices, and prices that:

(A) use performance based rewards or penalties, either related to or unrelated to the energy utility's return or property; and

(B) are designed to promote efficiency in the rendering of retail energy services.

(3) Approve:

(A) time-varying price structures and tariffs; or

(B) other alternative pricing structures and tariffs;

for retail energy service, such as time-of-use or off-peak pricing, critical peak pricing, variable peak pricing, and real-time pricing.

(b) This section:

(1) does not give a party to a collective bargaining agreement any greater rights under the collective bargaining agreement than the party had before January 1, 1995;

(2) does not give the commission the authority to order a party to a collective bargaining agreement to cancel, terminate, amend or otherwise modify the collective bargaining agreement; and

(3) may not be implemented by the commission in a way that would give a party to a collective bargaining agreement any greater rights under the collective bargaining agreement than the party had before January 1, 1995.

(c) An energy utility electing to become subject to this section shall file with the commission an alternative regulatory plan proposing how the commission will approve retail energy services or just and reasonable rates and charges for the energy utility's retail energy service.

(d) The energy utility shall publish a notice of the filing of a petition under this section in a newspaper of general circulation published in any county in which the energy utility provides retail energy service.

(e) After notice and hearing, the commission may approve, reject, or modify the energy utility's proposed plan if the commission finds that such action is consistent with the public interest. However, the commission may not order that material modifications changing the nature, scope or duration of the plan take effect without the agreement of the energy utility. The energy utility shall have twenty (20) days after the date of a commission order modifying the energy utility's proposed plan within which to, in writing, accept or reject the commission's order.

(f) An energy utility may withdraw a plan proposed under this section without prejudice before the commission's approval of the plan, or the energy utility may timely reject a commission order modifying its proposed plan under this section without prejudice. However, the energy utility may not file a petition for comparable relief under this section for a period of twelve (12) months after the date of the energy utility's withdrawal of its proposed plan or the date of the energy utility's rejection of the commission's order, whichever is applicable.

As added by P.L.108-1995, SEC.3. Amended by P.L.94-2022, SEC.3.

IC 8-1-2.5-6.5Commission study of performance based ratemaking for electricity suppliers; topics for study; stakeholder comments; recommendations in 2025 annual report Sec. 6.5. (a) As used in this section, "electricity supplier" means a public utility (as defined in IC 8-1-2-1(a)) that furnishes retail electric service to customers in Indiana. The term does not include a utility that is:

(1) a municipally owned utility (as defined in IC 8-1-2-1(h));

(2) a corporation organized under IC 8-1-13; or

(3) a corporation organized under IC 23-17 that is an electric cooperative and that has at least one (1) member that is a corporation organized under IC 8-1-13.

(b) Before September 1, 2023, the commission shall commence a comprehensive study to consider the appropriate:

(1) design and framework for; and

(2) requirements with respect to;

performance based ratemaking (as described in section 6(a)(2) of this chapter) for electricity suppliers.

(c) In conducting the study required by this section, the commission shall evaluate the following:

(1) Multi-year rate plans with incremental rate increases.

(2) Index-driven revenue formulas.

(3) Performance incentive mechanisms, including both rewards and penalties, for meeting, or failing to meet, metrics related to service or infrastructure investments.

(4) The use of performance incentive mechanisms in conjunction with traditional cost-of-service ratemaking, to provide regulatory oversight and ensure that rewards and penalties are equitably balanced and do not:

(A) over-compensate electricity suppliers for benefits provided; or

(B) under-compensate electricity suppliers for costs and risks incurred;

as applicable.

(5) Best practices for allocating the costs, benefits, and risks associated with performance incentive mechanisms between:

(A) customers and customer classes; and

(B) shareholders;

with affordability of service prioritized.

(6) Best practices for establishing quantifiable, verifiable, and clearly defined performance metrics in connection with performance incentive mechanisms.

(7) Best practices for the collection and protection of data from electricity suppliers as needed to justify or evaluate proposed or approved performance incentive mechanisms.

(8) Any other aspect of performance based ratemaking that the commission determines to be appropriate to incentivize electricity suppliers to provide value to ratepayers.

(d) In conducting the study required by this section, the commission may invite comments from:

(1) electricity suppliers;

(2) the office of utility consumer counselor;

(3) associations or organizations representing utility ratepayers;

(4) regulatory commissions or agencies in other states that have experience with performance based ratemaking;

(5) rate design experts; or

(6) other stakeholders.

The commission may incorporate any comments received under this subsection in its report under subsection (e).

(e) The commission shall include in the annual report that the commission is required to submit under IC 8-1-1-14 before October 1, 2025, a report that includes the commission's analysis and recommendations on the topics outlined in subsection (c). The report required by this subsection must contain recommendations, supported by sufficient data and analysis from the commission's study under this section, with respect to the appropriate:

(1) design and framework for; and

(2) requirements with respect to;

performance based ratemaking (as described in section 6(a)(2) of this chapter) for electricity suppliers, so as to enable the general assembly to fully evaluate the impact of performance based ratemaking on all classes of ratepayers, while considering the attributes of electric utility service set forth in IC 8-1-2-0.6, including reliability, affordability, resiliency, stability, and environmental sustainability.

As added by P.L.55-2023, SEC.2.

IC 8-1-2.5-7Termination of plan; exercise of jurisdiction over energy utility Sec. 7. The commission may:

(1) on its own motion;

(2) at the request of the utility consumer counselor;

(3) at the request of the affected energy utility; or

(4) at the request of any class satisfying the standing requirements of IC 8-1-2-54;

enter an order notifying an energy utility subject to an alternative regulatory plan or over which jurisdiction was either limited or not exercised under this chapter that the commission will proceed to terminate the plan, or any part thereof, or exercise jurisdiction over the energy utility or its retail energy service to the extent the public interest requires, unless a formal request for a hearing is filed by the energy utility with the commission not more than fifteen (15) days after the date of the order. In the event that such a formal request is timely filed, the commission shall hold a hearing concerning such matters and issue its order thereon based upon the evidence introduced at the hearing. However, if the commission has declined jurisdiction in whole or in part or approved an alternative regulatory plan under this chapter for a fixed term of years, such jurisdiction may be reimposed or the plan, or any part of the plan, may be terminated before expiration of the term only if material and irreparable harm to the energy utility, the energy utility's customers, the state, or the safety of the energy utility's workforce has been established.

As added by P.L.108-1995, SEC.3.

IC 8-1-2.5-8Commencement of proceedings Sec. 8. A proceeding before the commission under section 5 or 6, or both, of this chapter may be commenced only by an energy utility that elects to become subject to the applicable section.

As added by P.L.108-1995, SEC.3.

IC 8-1-2.5-9Annual commission report to interim study committee; annual interim study committee report to legislative council Sec. 9. (a) As used in this section, "committee" means the interim study committee on energy, utilities, and telecommunications established by IC 2-5-1.3-4.

(b) The committee shall monitor changes and competition in the energy utility industry.

(c) In addition to reviewing the commission's annual report prepared under IC 8-1-1-14, the committee shall also issue a report and recommendations to the legislative council before November 1 of each year that are based on a review of the following issues:

(1) The effects of competition or changes in the energy utility industry and the impact of the competition or changes on residential rates.

(2) The status of modernization of the energy utility facilities in Indiana and the incentives required to further enhance this infrastructure.

(3) The effects on economic development of this modernization.

(4) The traditional method of regulating energy utilities and the method's effectiveness.

(5) The economic and social effectiveness of traditional energy utility service pricing.

(6) The effects of legislation enacted by the United States Congress.

(7) All other energy utility issues the committee considers appropriate; however, it is not the intent of this section to provide for the review of the statutes cited in section 11 of this chapter.

The report and recommendations issued under this subsection to the legislative council must be in an electronic format under IC 5-14-6.

(d) This section:

(1) does not give a party to a collective bargaining agreement any greater rights under the agreement than the party had before January 1, 1995;

(2) does not give the committee the authority to order a party to a collective bargaining agreement to cancel, terminate, amend, or otherwise modify the collective bargaining agreement; and

(3) may not be implemented by the committee in a way that would give a party to a collective bargaining agreement any greater rights under the agreement than the party had before January 1, 1995.

(e) The committee shall, with the approval of the commission, retain independent consultants the committee considers appropriate to assist the committee in the review and study. The expenses for the consultants shall be paid with funds from the public utility fees assessed under IC 8-1-6.

As added by P.L.108-1995, SEC.3. Amended by P.L.78-1997, SEC.2; P.L.28-2004, SEC.70; P.L.256-2013, SEC.1; P.L.53-2014, SEC.75; P.L.71-2022, SEC.2.

IC 8-1-2.5-10Implementation of chapter Sec. 10. The commission may also adopt rules under IC 4-22-2 to implement this chapter, but the absence of such rules does not affect the commission's authority under this chapter.

As added by P.L.108-1995, SEC.3.

IC 8-1-2.5-11Limitations on chapter's applicability Sec. 11. Nothing in this chapter affects the continuing applicability of IC 8-1-2-87, IC 8-1-2-87.5, IC 8-1-2.3, or IC 8-1-3.

As added by P.L.108-1995, SEC.3.

IC 8-1-2.5-12Wages of independent contractor Sec. 12. For purposes of IC 8-1-2.5, wages paid to an independent contractor of an energy utility for construction or maintenance performed for an energy utility shall not be found to be excessive merely because the wages are those normally paid for work of the same type and quality in the labor market in which the work for the energy utility is being performed.

As added by P.L.108-1995, SEC.3.

IC 8-1-2.6Chapter 2.6. Competition in the Provision of Telephone Services

8-1-2.6-0.1"Basic telecommunications service" 8-1-2.6-0.2"Incumbent local exchange carrier" 8-1-2.6-0.3"Nonbasic telecommunications service" 8-1-2.6-0.4"Provider" 8-1-2.6-0.5"Rates and charges" 8-1-2.6-0.6"Telecommunications" 8-1-2.6-0.7"Telecommunications service" 8-1-2.6-1Legislative declaration 8-1-2.6-1.1Services not subject to commission jurisdiction 8-1-2.6-1.2Nonbasic telecommunications service; commission's limited jurisdiction 8-1-2.6-1.3Measured local service prohibited 8-1-2.6-1.4Basic telecommunications service; commission's limited jurisdiction 8-1-2.6-1.5Commission's delegated authority; intrastate switched or special access service rates and charges; filing of tariff 8-1-2.6-2Rules and orders of the commission; notice and hearing; underlying policies; determination of public interest 8-1-2.6-3Repealed 8-1-2.6-4Annual commission report to interim study committee; annual interim study committee report to legislative council 8-1-2.6-4.1Biennial review of rules 8-1-2.6-5Repealed 8-1-2.6-6Repealed 8-1-2.6-7Repealed 8-1-2.6-8Repealed 8-1-2.6-12Repealed 8-1-2.6-13Commission's jurisdiction; reporting requirements 8-1-2.6-14Payment of switched network access rates and other carrier compensation not affected 8-1-2.6-15Statutory conflicts 8-1-2.6-16Repealed 8-1-2.6-17Delegation of authority to grant numbering requests

IC 8-1-2.6-0.1"Basic telecommunications service" Sec. 0.1. (a) As used in this chapter, "basic telecommunications service" means stand alone telephone exchange service (as defined in 47 U.S.C. 153(47)) that:

(1) is provided to a residential customer through the customer's primary line; and

(2) is:

(A) the sole service purchased by the customer;

(B) not part of a package of services, a promotion, or a contract; or

(C) not otherwise offered at a discounted price.

(b) The term includes, at a minimum, the following:

(1) Voice grade access to the public switched telephone network with minimum bandwidth of three hundred (300) to three thousand (3,000) hertz.

(2) Dual tone multifrequency signaling and single party service.

(3) Access to:

(A) emergency services, including access to 911 if provided by the local government having jurisdiction in the service area;

(B) operator services;

(C) local directory assistance;

(D) telephone relay services; and

(E) interexchange service.

(4) Toll limitation services for qualifying low income customers.

(c) The term does not include a functionally equivalent service provided by a person or an entity described in IC 8-1-2-1.1.

As added by P.L.27-2006, SEC.6. Amended by P.L.119-2024, SEC.2.

IC 8-1-2.6-0.2"Incumbent local exchange carrier" Sec. 0.2. As used in this chapter, "incumbent local exchange carrier" has the meaning set forth in 47 U.S.C. 251(h).

As added by P.L.27-2006, SEC.7.

IC 8-1-2.6-0.3"Nonbasic telecommunications service" Sec. 0.3. (a) As used in this chapter, "nonbasic telecommunications service" means retail telecommunications service other than:

(1) basic telecommunications service, except when the service is purchased by the customer:

(A) in conjunction with another service;

(B) as part of a package of services, a promotion, or a contract; or

(C) at an otherwise discounted price;

(2) commercial mobile radio service (as defined in 47 CFR 51.5);

(3) services outside the jurisdiction of the commission under section 1.1 of this chapter; and

(4) switched and special access services.

(b) The term includes services included in:

(1) customer specific contracts;

(2) volume, term, and discount pricing options; and

(3) packages, bundles, and promotions, including offers designed to obtain new customers, retain existing customers, or bring back former customers.

As added by P.L.27-2006, SEC.8.

IC 8-1-2.6-0.4"Provider" Sec. 0.4. As used in this chapter, "provider" means a person or an entity that offers basic or nonbasic telecommunications service.

As added by P.L.27-2006, SEC.9.

IC 8-1-2.6-0.5"Rates and charges" Sec. 0.5. As used in this chapter, "rates and charges", with respect to basic telecommunications service, means the monthly charge to a customer for basic telecommunications service, including:

(1) recurring charges for flat rate and message rate service; and

(2) any nonrecurring charge for installation or a line or service connection.

As added by P.L.27-2006, SEC.10.

IC 8-1-2.6-0.6"Telecommunications" Sec. 0.6. As used in this chapter, "telecommunications" has the meaning set forth in 47 U.S.C. 153.

As added by P.L.27-2006, SEC.11. Amended by P.L.7-2015, SEC.8.

IC 8-1-2.6-0.7"Telecommunications service" Sec. 0.7. As used in this chapter, "telecommunications service" has the meaning set forth in 47 U.S.C. 153.

As added by P.L.27-2006, SEC.12. Amended by P.L.7-2015, SEC.9.

IC 8-1-2.6-1Legislative declaration Sec. 1. The Indiana general assembly hereby declares that:

(1) the maintenance of universal telephone service is a continuing goal of the commission in the exercise of its jurisdiction;

(2) competition has become commonplace in the provision of telecommunications services in Indiana and the United States;

(3) advancements in and the convergence of technologies that provide voice, video, and data transmission, including:

(A) landline, wireless, cable, satellite, and Internet transmissions; and

(B) transmissions involving voice over Internet Protocol (VOIP), Internet Protocol enabled services, and voice over power lines;

are substantially increasing consumer choice, reinventing the marketplace with unprecedented speed, and making available highly competitive products and services and new methods of delivering local exchange service;

(4) traditional regulatory policies, practices, and statutes are not designed to deal with a competitive environment and technological advancements;

(5) an environment in which Indiana consumers will have available the widest array of state-of-the-art communications services at the most economic and reasonable cost possible will necessitate full and fair facilities based competition in the delivery of telecommunications services throughout Indiana; and

(6) streamlining of, and flexibility in, the regulation of providers of telecommunications services, regardless of the technology used, is essential to the well-being of Indiana, its economy, and its citizens, and that the public interest requires that the commission be authorized to formulate and adopt rules and policies as will permit the commission, in the exercise of its expertise, to regulate and control the provision of telecommunications services to the public in an increasingly competitive and technologically changing environment, giving due regard to the interests of consumers and the public, the ability of market forces to encourage innovation and investment, and the continued universal availability of basic telecommunications service.

As added by P.L.92-1985, SEC.1. Amended by P.L.23-1988, SEC.32; P.L.27-2006, SEC.13.

IC 8-1-2.6-1.1Services not subject to commission jurisdiction Sec. 1.1. The commission shall not exercise jurisdiction over:

(1) advanced services (as defined in 47 CFR 51.5);

(2) broadband service, however defined or classified by the Federal Communications Commission;

(3) information service (as defined in 47 U.S.C. 153;

(4) Internet Protocol enabled retail services:

(A) regardless of how the service is classified by the Federal Communications Commission; and

(B) except as expressly permitted under IC 8-1-2.8;

(5) commercial mobile service (as defined in 47 U.S.C. 332); or

(6) any service not commercially available on March 28, 2006.

As added by P.L.27-2006, SEC.14. Amended by P.L.1-2007, SEC.69; P.L.7-2015, SEC.10.

IC 8-1-2.6-1.2Nonbasic telecommunications service; commission's limited jurisdiction Sec. 1.2. Except as provided in sections 1.5(b) and 13 of this chapter, after March 27, 2006, the commission shall not exercise jurisdiction over any nonbasic telecommunications service.

As added by P.L.27-2006, SEC.15. Amended by P.L.1-2007, SEC.70; P.L.256-2013, SEC.2.

IC 8-1-2.6-1.3Measured local service prohibited Sec. 1.3. A provider that offers basic telecommunications service in Indiana:

(1) must offer a flat monthly rate with unlimited local calling for basic telecommunications service in each local exchange area in Indiana in which the provider offers basic telecommunications service; and

(2) may not, in any local exchange area in Indiana in which the provider offers basic telecommunications service, offer any service plan for basic telecommunications service that includes measured local service.

As added by P.L.27-2006, SEC.16. Amended by P.L.256-2013, SEC.3.

IC 8-1-2.6-1.4Basic telecommunications service; commission's limited jurisdiction Sec. 1.4. Except as provided in sections 1.5(b) and 13 of this chapter, after June 30, 2009, the commission shall not exercise jurisdiction over basic telecommunications service.

As added by P.L.27-2006, SEC.17. Amended by P.L.1-2007, SEC.71; P.L.256-2013, SEC.4.

IC 8-1-2.6-1.5Commission's delegated authority; intrastate switched or special access service rates and charges; filing of tariff Sec. 1.5. (a) In acting to impose any requirements or set any prices concerning:

(1) interconnection with the facilities and equipment of providers for purposes of 47 U.S.C. 251(c)(2);

(2) the resale of telecommunications service for purposes of 47 U.S.C. 251(c)(4); or

(3) the unbundled access of one (1) provider to the network elements of another provider for purposes of 47 U.S.C. 251(c)(3);

the commission shall not exceed the authority delegated to the commission under federal laws and regulations with respect to those actions.

(b) Subject to any regulations adopted by the Federal Communications Commission, this section does not affect:

(1) the commission's authority to mediate a dispute between providers under 47 U.S.C. 252(a);

(2) the commission's authority to arbitrate a dispute between providers under 47 U.S.C. 252(b);

(3) the commission's authority to approve an interconnection agreement under 47 U.S.C. 252(e), including the authority to establish service quality metrics and liquidated damages;

(4) the commission's authority to review and approve a provider's statement of terms and conditions under 47 U.S.C. 252(f);

(5) a provider's ability to file a complaint with the commission to have a dispute decided by the commission:

(A) after notice and hearing; and

(B) in accordance with this article; or

(6) the commission's authority to resolve an interconnection dispute between providers under the expedited procedures set forth in 170 IAC 7-7.

(c) If a provider's rates and charges for intrastate switched or special access service are:

(1) at issue in a dispute that the commission is authorized to mediate, arbitrate, or otherwise determine under state or federal law; or

(2) included in an interconnection agreement or a statement of terms and conditions that the commission is authorized to review or approve under state or federal law;

the commission shall consider the provider's rates and charges for intrastate switched or special access service to be just and reasonable if the intrastate rates and charges mirror the provider's interstate rates and charges for switched or special access service.

(d) If the commission requires a provider to file a tariff for intrastate switched access service, special access service, or any other service, the filing of the tariff with the commission serves as the public notice of the filing of the tariff. The commission shall provide the public with notice of tariff filings through the commission's website or other electronic means.

As added by P.L.27-2006, SEC.18. Amended by P.L.256-2013, SEC.5; P.L.107-2014, SEC.1; P.L.1-2025, SEC.114.

IC 8-1-2.6-2Rules and orders of the commission; notice and hearing; underlying policies; determination of public interest Sec. 2. (a) This section applies to rules and orders that:

(1) concern telecommunications service or providers of telecommunications service; and

(2) may be adopted or issued by the commission under the authority of state or federal law.

(b) Rules and orders described in this section:

(1) may be adopted or issued only after notice and hearing, unless:

(A) the commission acts in accordance with IC 8-1-2-113 during a disaster emergency that is declared by the governor and that requires the commission or a provider to take immediate action to:

(i) prevent injury to the business or interests of the citizens of Indiana; or

(ii) maintain a provider's financial integrity and ability to provide adequate basic telecommunications service;

(B) the commission is authorized under IC 8-1-2 to adopt a particular rule or issue a particular order without the necessity of a hearing; or

(C) after receiving notice of the commission's proposed action, all parties to a proceeding consent to the commission taking action without a hearing; and

(2) must be:

(A) consistent with this chapter; and

(B) in the public interest, as determined by the commission under subsection (d).

(c) Rules and orders described in this section must promote one (1) or more of the following:

(1) Cost minimization for providers to the extent that a provider's quality of service and facilities are not diminished.

(2) A more accurate evaluation by the commission of a provider's physical or financial conditions or needs as well as a less costly regulatory procedure for either the provider, the provider's customers, or the commission.

(3) Consumer access to affordable basic telecommunications service.

(4) Development of depreciation guidelines and procedures that recognize technological obsolescence.

(5) Increased provider management efficiency beneficial to customers.

(6) Regulation consistent with a competitive environment.

(d) In determining whether the public interest will be served, as required under subsection (b), the commission shall consider:

(1) whether technological change, competitive forces, or regulation by other state and federal regulatory bodies render the exercise of jurisdiction by the commission unnecessary or wasteful;

(2) whether the exercise of commission jurisdiction produces tangible benefits to the customers of providers; and

(3) whether the exercise of commission jurisdiction inhibits a regulated entity from competing with unregulated providers of functionally similar telecommunications services or equipment.

As added by P.L.92-1985, SEC.1. Amended by P.L.27-2006, SEC.19; P.L.107-2014, SEC.2; P.L.36-2026, SEC.6.

IC 8-1-2.6-3RepealedAs added by P.L.92-1985, SEC.1. Repealed by P.L.27-2006, SEC.61.

IC 8-1-2.6-4Annual commission report to interim study committee; annual interim study committee report to legislative council Sec. 4. (a) As used in this section, "committee" means the interim study committee on energy, utilities, and telecommunications established by IC 2-5-1.3-4.

(b) In addition to reviewing the commission's annual report prepared under IC 8-1-1-14, the committee may also issue a report and recommendations to the legislative council by November 1 of each year that is based on a review of the following issues:

(1) The effects of competition and technological change in the telecommunications industry and impact of competition on available subsidies used to maintain universal service.

(2) The status of modernization of the publicly available telecommunications infrastructure in Indiana and the incentives required to further enhance this infrastructure.

(3) The effects on economic development and educational opportunities of the modernization described in subdivision (2).

(4) The current methods of regulating providers, at both the federal and state levels, and the effectiveness of the methods.

(5) The economic and social effectiveness of current telecommunications service pricing.

(6) All other telecommunications issues the committee deems appropriate.

The report and recommendations issued under this subsection to the legislative council must be in an electronic format under IC 5-14-6.

(c) The committee shall, with the approval of the commission, retain the independent consultants the committee considers appropriate to assist the committee in the review and study. The expenses for the consultants shall be paid by the commission.

As added by P.L.92-1985, SEC.1. Amended by P.L.23-1988, SEC.33; P.L.55-1992, SEC.1; P.L.224-2003, SEC.277; P.L.28-2004, SEC.71; P.L.27-2006, SEC.20; P.L.62-2009, SEC.1; P.L.256-2013, SEC.6; P.L.241-2013, SEC.1; P.L.53-2014, SEC.76; P.L.177-2021, SEC.4; P.L.9-2022, SEC.13; P.L.71-2022, SEC.3.

IC 8-1-2.6-4.1Biennial review of rules Sec. 4.1. (a) Not later than:

(1) July 1, 2007; and

(2) July 1 of each odd-numbered year after July 1, 2007;

the commission shall, through a rulemaking proceeding under IC 4-22-2 or another commission proceeding, identify and eliminate rules and policies concerning telecommunications service and telecommunications service providers if the rules or policies are no longer necessary in the public interest or for the protection of consumers as the result of meaningful economic competition between providers of telecommunications services.

(b) A rule adopted under subsection (b) (as subsection (b) was in effect before its expiration on June 30, 2013) is void after June 30, 2013.

As added by P.L.27-2006, SEC.21. Amended by P.L.256-2013, SEC.7; P.L.53-2014, SEC.77.

IC 8-1-2.6-5RepealedAs added by P.L.92-1985, SEC.1. Repealed by P.L.27-2006, SEC.61.

IC 8-1-2.6-6RepealedAs added by P.L.92-1985, SEC.1. Repealed by P.L.27-2006, SEC.62.

IC 8-1-2.6-7RepealedAs added by P.L.92-1985, SEC.1. Repealed by P.L.27-2006, SEC.61.

IC 8-1-2.6-8RepealedAs added by P.L.81-1988, SEC.2. Amended by P.L.27-2006, SEC.22. Repealed by P.L.256-2013, SEC.8.

IC 8-1-2.6-12RepealedAs added by P.L.27-2006, SEC.23. Repealed by P.L.256-2013, SEC.9.

IC 8-1-2.6-13Commission's jurisdiction; reporting requirements Sec. 13. (a) As used in this section, "communications service" has the meaning set forth in IC 8-1-32.5-3.

(b) As used in this section, "communications service provider" means a person or an entity that offers communications service to customers in Indiana, without regard to the technology or medium used by the person or entity to provide the communications service. The term includes a provider of commercial mobile service (as defined in 47 U.S.C. 332).

(c) Notwithstanding sections 1.2, 1.4, and 1.5 of this chapter, the commission may do the following, except as otherwise provided in this subsection:

(1) Enforce the terms of a settlement agreement approved by the commission before July 29, 2004. The commission's authority under this subdivision continues for the duration of the settlement agreement.

(2) Fulfill the commission's duties under IC 8-1-2.8 concerning the provision of dual party relay services to deaf, hard of hearing, and speech impaired persons in Indiana.

(3) Fulfill the commission's responsibilities under IC 8-1-29 to adopt and enforce rules to ensure that a customer of a telecommunications provider is not:

(A) switched to another telecommunications provider unless the customer authorizes the switch; or

(B) billed for services by a telecommunications provider that without the customer's authorization added the services to the customer's service order.

(4) Fulfill the commission's obligations under the federal Telecommunications Act of 1996 (47 U.S.C. 151 et seq.) concerning universal service and access to telecommunications service and equipment, including the designation of eligible telecommunications carriers under 47 U.S.C. 214.

(5) Perform any of the functions described in section 1.5(b) of this chapter.

(6) Perform the commission's responsibilities under IC 8-1-32.5 to:

(A) issue; and

(B) maintain records of;

certificates of territorial authority for communications service providers offering communications service to customers in Indiana.

(7) Perform the commission's responsibilities under IC 8-1-34 concerning the issuance of certificates of franchise authority to multichannel video programming distributors offering video service to Indiana customers.

(8) Subject to subsection (f), require a communications service provider, other than a provider of commercial mobile service (as defined in 47 U.S.C. 332), to report to the commission on an annual basis, or more frequently at the option of the provider, any information needed by the commission to prepare the commission's annual report under IC 8-1-1-14(c)(4).

(9) Perform the commission's duties under IC 8-1-32.4 with respect to telecommunications providers of last resort, to the extent of the authority delegated to the commission under federal law to perform those duties.

(10) Collect and maintain from a communications service provider the following information:

(A) The address of the provider's website.

(B) All toll free telephone numbers and other customer service telephone numbers maintained by the provider for receiving customer inquiries and complaints.

(C) An address and other contact information for the provider, including any telephone number not described in clause (B).

The commission shall make any information submitted by a provider under this subdivision available on the commission's website. The commission may also make available on the commission's website contact information for the Federal Communications Commission and the Cellular Telephone Industry Association.

(11) Fulfill the commission's duties under any state or federal law concerning the administration of any universally applicable dialing code for any communications service.

(d) The commission does not have jurisdiction over any of the following with respect to a communications service provider:

(1) Rates and charges for communications service provided by the communications service provider, including the filing of schedules or tariffs setting forth the provider's rates and charges.

(2) Depreciation schedules for any of the classes of property owned by the communications service provider.

(3) Quality of service provided by the communications service provider.

(4) Long term financing arrangements or other obligations of the communications service provider.

(5) Except as provided in subsection (c), any other aspect regulated by the commission under this title before July 1, 2009.

(e) The commission has jurisdiction over a communications service provider only to the extent that jurisdiction is:

(1) expressly granted by state or federal law, including:

(A) a state or federal statute;

(B) a lawful order or regulation of the Federal Communications Commission; or

(C) an order or a ruling of a state or federal court having jurisdiction; or

(2) necessary to administer a federal law for which regulatory responsibility has been delegated to the commission by federal law.

(f) Except as specifically required under state or federal law, or except as required to respond to consumer complaints or information requests from the general assembly, the commission may not require a communications service provider:

(1) to file a tariff; or

(2) except for purposes of a petition or request filed or submitted to the commission by the communications service provider, to report to the commission any information that is:

(A) available to the public on the communications service provider's website;

(B) filed with the Federal Communications Commission; or

(C) otherwise available to the public in any form or at any level of detail;

including the communications service provider's rates, terms, and conditions of service.

As added by P.L.27-2006, SEC.24. Amended by P.L.1-2007, SEC.72; P.L.109-2012, SEC.2; P.L.256-2013, SEC.10; P.L.107-2014, SEC.3; P.L.149-2016, SEC.34; P.L.156-2017, SEC.2; P.L.73-2020, SEC.2; P.L.177-2021, SEC.5; P.L.71-2022, SEC.4; P.L.1-2025, SEC.115; P.L.214-2025, SEC.3.

IC 8-1-2.6-14Payment of switched network access rates and other carrier compensation not affected Sec. 14. This chapter does not affect the rights and obligations of any person or entity concerning the payment of switched network access rates or other carrier compensation concerning:

(1) Internet Protocol enabled services;

(2) advanced services (as defined in 47 CFR 51.5);

(3) broadband service; or

(4) other Internet access services.

As added by P.L.27-2006, SEC.25.

IC 8-1-2.6-15Statutory conflicts Sec. 15. If there is a conflict between this chapter and another provision of this article, this chapter controls.

As added by P.L.27-2006, SEC.26. Amended by P.L.256-2013, SEC.11.

IC 8-1-2.6-16RepealedAs added by P.L.27-2006, SEC.27. Repealed by P.L.107-2014, SEC.4.

IC 8-1-2.6-17Delegation of authority to grant numbering requests Sec. 17. The commission may delegate to staff the authority to grant requests for numbering resources submitted through the safety valve process established by the Federal Communications Commission as provided In the Matter of Numbering Resource Optimization: Implementation of the Local Competition Provisions of the Telecommunications Act of 1996, 17 FCC Rcd 252 (FCC 01-362, 2001). An action taken by commission staff under this section is appealable to the commission.

As added by P.L.219-2011, SEC.1.

IC 8-1-2.7Chapter 2.7. Local Water Corporations; Indiana Utility Regulatory Commission Jurisdiction

8-1-2.7-1Repealed 8-1-2.7-1.2Repealed 8-1-2.7-1.3Applicability of chapter 8-1-2.7-1.4"Members" and "shareholders" defined 8-1-2.7-1.5Repealed 8-1-2.7-1.6"Sewage treatment provider" defined 8-1-2.7-1.7Entity contracting with nonprofit public sewage utility not subject to commission jurisdiction 8-1-2.7-2Withdrawal of utility from commission jurisdiction 8-1-2.7-3Approval for withdrawal 8-1-2.7-4Referendum on withdrawal 8-1-2.7-5Notice of special meeting for referendum; form of absentee ballot 8-1-2.7-6Quorum 8-1-2.7-7Ballots; form; results 8-1-2.7-8Repealed 8-1-2.7-9Effect of withdrawal 8-1-2.7-10Confirmation of withdrawal 8-1-2.7-11Petition to return to commission jurisdiction; referendum; ballot form 8-1-2.7-12Return to commission jurisdiction 8-1-2.7-13Confirmation of return to commission jurisdiction 8-1-2.7-14Annual reports of utility before return to commission jurisdiction 8-1-2.7-14.5Failure to follow procedures for withdrawal from or return to commission's jurisdiction 8-1-2.7-15Revocation or limitation of withdrawal from commission jurisdiction 8-1-2.7-15.5Policy review committee for a not-for-profit utility providing water service

IC 8-1-2.7-1RepealedAs added by P.L.108-1989, SEC.1. Repealed by P.L.82-1997, SEC.19 and P.L.80-1997, SEC.24.

IC 8-1-2.7-1.2RepealedAs added by P.L.82-1997, SEC.1. Repealed by P.L.159-1999, SEC.21.

IC 8-1-2.7-1.3Applicability of chapter Sec. 1.3. (a) This chapter applies to the following:

(1) A public utility established to provide water service that is:

(A) privately owned and serves less than three hundred (300) customers;

(B) a not-for-profit utility (as defined by IC 8-1-2-125(a));

(C) a cooperative corporation exempt from state and federal income taxation; or

(D) a conservancy district established under IC 14-33-2 that:

(i) has as a purpose of the district the provision of a water supply, including the treatment and distribution of water, for domestic, industrial, and public use; and

(ii) provides water service to less than three thousand (3,000) customers.

(2) A public utility established to provide sewage disposal service (as defined in IC 8-1-2-89(a)(1)) that holds a certificate of territorial authority as required by IC 8-1-2-89, and that is:

(A) privately owned and serves less than three hundred (300) customers;

(B) a not-for-profit utility (as defined in IC 8-1-2-125(a)); or

(C) a cooperative corporation exempt from state and federal income taxation.

(3) Except as provided in subsection (b), a legal entity providing only sewage treatment service to a not-for-profit sewage disposal company.

(b) Subsection (a)(3) does not include a sewage treatment provider that is otherwise subject to the commission's jurisdiction.

As added by P.L.82-1997, SEC.2 and P.L.80-1997, SEC.2. Amended by P.L.159-1999, SEC.2; P.L.78-2007, SEC.1; P.L.127-2026, SEC.3.

IC 8-1-2.7-1.4"Members" and "shareholders" defined Sec. 1.4. As used in this chapter, "members" of a not-for-profit water or sewage disposal company and "shareholders" of a privately owned water or sewage disposal company shall also include the customers of that utility.

As added by P.L.80-1997, SEC.3 and P.L.82-1997, SEC.3. Amended by P.L.159-1999, SEC.3.

IC 8-1-2.7-1.5RepealedAs added by P.L.80-1997, SEC.4 and P.L.82-1997, SEC.4. Repealed by P.L.159-1999, SEC.21.

IC 8-1-2.7-1.6"Sewage treatment provider" defined Sec. 1.6. (a) As used in this chapter, "sewage treatment provider" means a legal entity that provides only sewage treatment service to a not-for-profit sewage disposal company.

(b) As used in this chapter, "sewage treatment recipient" means a not-for-profit sewage disposal company that receives sewage treatment service from another legal entity.

As added by P.L.159-1999, SEC.4.

IC 8-1-2.7-1.7Entity contracting with nonprofit public sewage utility not subject to commission jurisdiction Sec. 1.7. (a) This section does not apply to a sewage treatment provider that is otherwise subject to the jurisdiction of the commission.

(b) When a sewage treatment provider contracts to provide only sewage treatment service to a sewage treatment recipient, the sewage treatment provider is not subject to the jurisdiction of the commission, regardless of whether the sewage treatment recipient is subject to the jurisdiction of the commission.

As added by P.L.80-1997, SEC.5 and P.L.82-1997, SEC.5. Amended by P.L.159-1999, SEC.5.

IC 8-1-2.7-2Withdrawal of utility from commission jurisdiction Sec. 2. (a) This chapter provides the exclusive statutory manner for a utility described in section 1.3(a)(1) or 1.3(a)(2) of this chapter to withdraw from the jurisdiction of the commission for the approval of the following:

(1) Rates and charges.

(2) Stocks, bonds, notes, or other evidence of indebtedness.

(3) Rules.

(4) The annual report filing requirement.

(b) Notwithstanding any other provision in this article, a sewer disposal company described in section 1.3(a)(2) of this chapter shall not initiate operations or provide service or seek commission authority to do so within a territory for which the commission has granted operating and territorial authority to any other entity, which has not been revoked.

(c) A sewage disposal company described in section 1.3(a)(2) of this chapter that has withdrawn from commission jurisdiction under this chapter shall offer service to all customers within the territory for which the commission has granted the utility territorial authority.

(d) A utility described in section 1.3(a)(1) or 1.3(a)(2) of this chapter that is subject to the commission's jurisdiction under IC 8-1-1.9-5(e)(2) for having been issued more than one (1) enforcement order (as defined in IC 8-1-1.9-5(c)) within the time specified in IC 8-1-1.9-5(e)(2) may not seek to withdraw from the commission's jurisdiction under this chapter during the rate regulation period set forth in IC 8-1-1.9-5(e)(2).

As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.6; P.L.82-1997, SEC.6; P.L.159-1999, SEC.6; P.L.60-2024, SEC.1; P.L.24-2025, SEC.2.

IC 8-1-2.7-3Approval for withdrawal Sec. 3. A utility described in section 1.3(a)(1) or 1.3(a)(2) of this chapter that proposes to withdraw from the jurisdiction of the commission must first obtain approval from its members or shareholders.

As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.7; P.L.82-1997, SEC.7; P.L.159-1999, SEC.7.

IC 8-1-2.7-4Referendum on withdrawal Sec. 4. The board of directors of a utility described in section 1.3(a)(1) or 1.3(a)(2) of this chapter must conduct a referendum among its members or shareholders to determine whether the members or shareholders approve the withdrawal from commission jurisdiction.

As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.8; P.L.82-1997, SEC.8; P.L.159-1999, SEC.8.

IC 8-1-2.7-5Notice of special meeting for referendum; form of absentee ballot Sec. 5. (a) The referendum must be conducted at a special meeting called by the board. Written notice of the meeting must be sent to every member or shareholder of the withdrawing utility and to the secretary of the commission not less than forty-five (45) days before the date of the meeting. The notice must contain the following information:

(1) The place, date, and hour of the meeting.

(2) The purpose of the meeting, including an explanation of what the withdrawal from commission jurisdiction entails.

(3) The fact that no proxies will be permitted.

(4) A statement that a member or shareholder may cast a vote by secret absentee ballot.

(b) The notice provided under subsection (a) must include:

(1) instructions for how a member or shareholder who wishes to cast a vote by absentee ballot may request an absentee ballot;

(2) a statement that a request for an absentee ballot precludes a member or shareholder from voting in person at the meeting held on the question of withdrawal from the commission's jurisdiction;

(3) instructions that a member or shareholder voting by absentee ballot must:

(A) return the absentee ballot by United States mail; or

(B) deliver the absentee ballot in person to the offices of the utility; and

(4) the deadline for returning or delivering an absentee ballot, which must be:

(A) not earlier than ten (10) calendar days; and

(B) not later than five (5) calendar days;

before the meeting on the question of withdrawal, along with information as to when an absentee ballot will be considered received by the board.

(c) The form of an absentee ballot authorized by this section must be as follows:

[] YES, I want to withdraw from the jurisdiction of the commission.

[] NO, I want to remain under the jurisdiction of the commission.

(d) An absentee ballot authorized by this section must not:

(1) require a member or shareholder to include the member's or shareholder's name on the absentee ballot or to sign the absentee ballot; or

(2) be marked with any number or identifier that can be traced to the member or shareholder;

so as to compromise the confidentiality of the member's or shareholder's vote.

As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.9; P.L.82-1999, SEC.9; P.L.159-1999, SEC.9; P.L.60-2024, SEC.2.

IC 8-1-2.7-6Quorum Sec. 6. A quorum consisting of not less than five percent (5%) of the members or shareholders must:

(1) be present at the meeting; or

(2) vote by absentee ballot;

to transact business and to take official action regarding the jurisdiction question.

As added by P.L.108-1989, SEC.1. Amended by P.L.60-2024, SEC.3.

IC 8-1-2.7-7Ballots; form; results Sec. 7. The board shall distribute secret written ballots to the members or shareholders present at the meeting. The form of the ballots must be as follows:

[] YES, I want to withdraw from the jurisdiction of the commission.

[] NO, I want to remain under the jurisdiction of the commission.

Each member or shareholder is entitled to one (1) vote, either in person at the meeting or by absentee ballot, on the question of withdrawal from commission jurisdiction. Proxy votes may not be permitted. If a majority of voting members or shareholders vote in favor of the utility withdrawing from commission jurisdiction, the withdrawal becomes effective thirty (30) days after the date of the meeting at which the vote is conducted. If less than a majority of the voting members or shareholders vote in favor of withdrawal from commission jurisdiction, the utility is prohibited from seeking withdrawal for two (2) years following the date of the meeting at which the vote is conducted.

As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.10; P.L.82-1997, SEC.10; P.L.159-1999, SEC.10; P.L.60-2024, SEC.4.

IC 8-1-2.7-8RepealedAs added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.11; P.L.82-1997, SEC.11. Repealed by P.L.159-1999, SEC.21.

IC 8-1-2.7-9Effect of withdrawal Sec. 9. (a) Except as provided under subsection (c) or section 15 of this chapter, when a utility successfully withdraws from commission jurisdiction, the commission does not have authority to regulate the following:

(1) Rates and charges.

(2) Stocks, bonds, notes, or other evidence of indebtedness.

(3) Rules.

(4) The annual report filing requirement.

(b) When the number of patrons served by a withdrawn utility described in section 1.3(a)(1)(A) or 1.3(a)(2)(A) of this chapter reaches five thousand (5,000), the utility:

(1) becomes subject to the annual report filing requirement described in IC 8-1-2-16; and

(2) shall immediately notify the commission of the number of patrons served by the utility.

Upon receiving notice under subdivision (2), the commission may reassert jurisdiction over the utility, in whole or in part, after notice and hearing if the commission finds that the public interest so requires.

(c) As used in this subsection, "utility" refers to a utility described in section 1.3(a)(1)(B) of this chapter that is located in a county having a population of more than fifteen thousand four hundred (15,400) and less than fifteen thousand four hundred fifty (15,450). When one (1) utility has successfully withdrawn from commission jurisdiction under this chapter, upon the filing of a complaint by another utility that has not withdrawn from commission jurisdiction under this chapter, the commission shall reassert jurisdiction over the withdrawn utility with respect to the withdrawn utility's:

(1) rates and charges;

(2) rules; and

(3) operating and territorial authority;

that have been or may be established concerning the purchase of water for resale by the complaining utility from the withdrawn utility. The rates and charges described in subdivision (1) are subject to the requirements of IC 8-1-2-125. The burden of proof that the rates and charges described in subdivision (1) comply with IC 8-1-2-125 is on the withdrawn utility.

As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.12; P.L.82-1997, SEC.12; P.L.159-1999, SEC.11; P.L.226-2001, SEC.2; P.L.170-2002, SEC.58; P.L.119-2012, SEC.83; P.L.104-2022, SEC.59.

IC 8-1-2.7-10Confirmation of withdrawal Sec. 10. (a) If a utility successfully withdraws from commission jurisdiction, the board of directors shall, within five (5) days of the meeting, send written confirmation to the secretary of the commission containing the following information:

(1) The total membership or number of shareholders of the utility.

(2) The total number of members or shareholders:

(A) present at the meeting; and

(B) voting by absentee ballot.

(3) The vote totals both for and against withdrawal.

(4) Written verification of notice of the meeting.

(5) An affidavit, signed by all of the members of the board of directors, stating that all of the requirements of this chapter have been met.

(b) If a utility successfully withdraws from commission jurisdiction, the utility is not required to pay the public utility fee imposed under IC 8-1-6.

(c) Notwithstanding any other provision of this chapter, a utility described in section 1.3(a)(2) of this chapter that has withdrawn from commission jurisdiction remains subject to commission jurisdiction with regard to the requirements of IC 8-1-2-89(f).

(d) Whenever two (2) or more utilities described in section 1.3(a)(1) or 1.3(a)(2) of this chapter propose to consolidate, and at least one (1), but not all of the utilities have withdrawn from commission jurisdiction, then the following apply:

(1) For purposes of the consolidation, all of the utilities are under the commission's jurisdiction.

(2) The new corporation that is formed as a result of the consolidation is under the commission's jurisdiction for all purposes and must fully comply with this chapter in order to withdraw from commission jurisdiction.

(e) If two (2) or more utilities described in section 1.3(a)(1)(C) or 1.3(a)(2)(C) of this chapter propose to consolidate, and all of the cooperatives have withdrawn from commission jurisdiction, the new utility continues to operate outside the commission's jurisdiction under the terms of this section.

(f) The commission's approval is not required for consolidation of two (2) or more utilities that have all withdrawn from commission jurisdiction.

As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.13; P.L.82-1997, SEC.13; P.L.159-1999, SEC.12; P.L.60-2024, SEC.5.

IC 8-1-2.7-11Petition to return to commission jurisdiction; referendum; ballot form Sec. 11. (a) Whenever the members or shareholders of a utility desire to return to commission jurisdiction, they must petition the commission. A petition signed by:

(1) at least fifteen percent (15%) of the members or shareholders; or

(2) the board of directors of the utility;

must first be submitted to the commission, informing that body of the utility's intent to conduct a referendum concerning the return to commission jurisdiction. The procedures outlined in sections 2 through 7 of this chapter must be followed when conducting a referendum under this section, except that the form of the ballots must be as follows:

[] YES, I want to return to the jurisdiction of the commission.

[] NO, I want to remain outside of the jurisdiction of the commission.

(b) The question of returning to commission jurisdiction may not be submitted to the members or shareholders within four (4) years after the date the utility withdrew from commission jurisdiction.

As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.14; P.L.82-1997, SEC.14; P.L.159-1999, SEC.13.

IC 8-1-2.7-12Return to commission jurisdiction Sec. 12. If a utility returns to commission jurisdiction, the commission assumes jurisdiction over the following thirty (30) days after the date of the meeting at which the vote is conducted:

(1) Rates and charges.

(2) Stocks, bonds, notes, or other evidence of indebtedness.

(3) Rules.

(4) The annual report filing requirement.

If less than a majority of the voting members or shareholders vote in favor of returning to commission jurisdiction, a referendum on the question may not be conducted for two (2) years following the date of the meeting at which the vote is conducted.

As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.15; P.L.82-1997, SEC.15; P.L.159-1999, SEC.14; P.L.60-2024, SEC.6.

IC 8-1-2.7-13Confirmation of return to commission jurisdiction Sec. 13. If a utility attempts to return to commission jurisdiction, the board of directors shall, within five (5) days following the meeting, send written confirmation to the secretary of the commission containing the following information:

(1) The total membership or number of shareholders of the utility.

(2) The total number of members or shareholders:

(A) present at the meeting; and

(B) voting by absentee ballot.

(3) The vote totals both for and against the return.

(4) Written verification of notice of the meeting.

(5) An affidavit, signed by all the members of the board of directors, stating that all of the requirements of this chapter have been met.

As added by P.L.108-1989, SEC.1. Amended by P.L.82-1997, SEC.16; P.L.80-1997, SEC.16; P.L.159-1999, SEC.15; P.L.60-2024, SEC.7.

IC 8-1-2.7-14Annual reports of utility before return to commission jurisdiction Sec. 14. When a utility returns to commission jurisdiction, the commission may order the utility to file an annual report of the operation of its plant for each of the three (3) calendar years immediately preceding its return to commission jurisdiction on a form prescribed by the commission.

As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.17; P.L.82-1997, SEC.17; P.L.159-1999, SEC.16.

IC 8-1-2.7-14.5Failure to follow procedures for withdrawal from or return to commission's jurisdiction Sec. 14.5. (a) This section applies when a utility fails to follow the procedures provided in this chapter for withdrawal from or return to the commission's jurisdiction.

(b) To contest compliance with this chapter:

(1) parties aggrieved by the decision to withdraw from or return to commission jurisdiction; or

(2) other interested parties;

must file an action in the circuit or superior court with jurisdiction in the county where the utility has its principal office.

(c) An action filed under this section must be filed not later than thirty (30) days after the date of the meeting at which the vote regarding commission jurisdiction over the utility is conducted.

As added by P.L.159-1999, SEC.17. Amended by P.L.60-2024, SEC.8.

IC 8-1-2.7-15Revocation or limitation of withdrawal from commission jurisdiction Sec. 15. (a) This section applies after a utility has properly withdrawn from commission jurisdiction under this chapter.

(b) The commission shall revoke or limit the withdrawal from the jurisdiction of the commission of a utility if the lesser of:

(1) one hundred (100); or

(2) more than fifty percent (50%);

of the utility's customers file, individually or collectively, a verified petition with the commission and prove that the public interest requires the commission to revoke or limit the withdrawal from the jurisdiction of the commission.

(c) A petition may be filed with the commission under this section at any time following the withdrawal of the utility.

As added by P.L.82-1997, SEC.18. Amended by P.L.159-1999, SEC.18.

IC 8-1-2.7-15.5Policy review committee for a not-for-profit utility providing water service Sec. 15.5. (a) This section applies to a utility that is described in section 1.3(a)(1)(B) of this chapter that has properly withdrawn from commission jurisdiction under this chapter.

(b) As used in this section, "committee" refers to a policy review committee established under this section.

(c) A policy review committee may be established for a utility if the lesser of:

(1) one hundred (100); or

(2) more than fifty percent (50%);

of the utility's customers file, individually or collectively, with the utility's board of directors, a verified petition under subsection (d) to establish the committee.

(d) A petition under this section must provide for the following:

(1) A procedure for establishing districts within the utility's service territory and for electing members, who must be customers of the utility residing within the established districts, to serve as members of the committee.

(2) The terms of the members of the committee.

(3) Procedures by which the committee is authorized to do the following:

(A) Receive complaints from customers of the utility concerning:

(i) rules and policies established by the utility's board of directors;

(ii) the utility's rates and charges;

(iii) utility service quality; or

(iv) other matters concerning the utility's operations, management, or service, as specifically set forth in the petition.

(B) Attempt to negotiate a resolution with the utility's board of directors with respect to a complaint received under clause (A).

(C) Seek mediation to be overseen by the office of the attorney general with respect to complaints that are not resolved through negotiations described in clause (B).

(4) Other matters that the petitioners consider appropriate with respect to the utility's operations, management, or service.

(e) The attorney general may adopt rules under IC 4-22-2 to implement this section.

As added by P.L.233-2017, SEC.10. Amended by P.L.93-2024, SEC.66.

IC 8-1-2.8Chapter 2.8. Dual Party Relay Services for Persons Who Are Deaf, Hard of Hearing, or Speech Impaired

8-1-2.8-1"ADA" 8-1-2.8-2"Commission" 8-1-2.8-3"Dual party relay services" 8-1-2.8-4"FCC" 8-1-2.8-5"Deaf, hard of hearing, or speech impaired person" 8-1-2.8-6"Indiana Telephone Relay Access Corporation for the Hearing and Speech Impaired" 8-1-2.8-7"Local exchange access service" 8-1-2.8-8"Local exchange company" 8-1-2.8-9"Telephone company" 8-1-2.8-10Findings and declarations 8-1-2.8-11Residential and business lines; surcharge 8-1-2.8-12Adjustment of surcharge 8-1-2.8-13Approval of surcharge adjustment 8-1-2.8-14Monthly bill; collection of surcharge 8-1-2.8-15Accounting and recovery of costs 8-1-2.8-16Exemption from taxes and fees 8-1-2.8-17Payments of surcharge 8-1-2.8-18Articles of incorporation 8-1-2.8-19Articles of incorporation; additional provisions 8-1-2.8-20Actions in pursuit of purposes 8-1-2.8-21Duties of InTRAC 8-1-2.8-22Use of InTRAC services by nonmembers 8-1-2.8-23Exemption of InTRAC from commission jurisdiction; affiliated interests 8-1-2.8-24Charitable purposes; exemptions 8-1-2.8-25Immunity from civil liability

IC 8-1-2.8-1"ADA" Sec. 1. As used in this chapter, "ADA" refers to the federal Americans with Disabilities Act of 1990 (47 U.S.C. 225).

As added by P.L.75-1991, SEC.1.

IC 8-1-2.8-2"Commission" Sec. 2. As used in this chapter, "commission" refers to the Indiana utility regulatory commission.

As added by P.L.75-1991, SEC.1.

IC 8-1-2.8-3"Dual party relay services" Sec. 3. (a) As used in this chapter, "dual party relay services" means telecommunications transmission services that provide the ability for a person who has a hearing impairment or speech impairment to engage in communication with a hearing person in a manner that is functionally equivalent to the ability of an individual who does not have a hearing impairment or speech impairment to communicate using voice communication services.

(b) The term includes services that enable two-way communication between a person who uses a telecommunications device for individuals who are deaf or other nonvoice terminal and a person who does not use such a device.

As added by P.L.75-1991, SEC.1. Amended by P.L.27-2006, SEC.28; P.L.99-2007, SEC.31.

IC 8-1-2.8-4"FCC" Sec. 4. As used in this chapter, "FCC" refers to the Federal Communications Commission.

As added by P.L.75-1991, SEC.1.

IC 8-1-2.8-5"Deaf, hard of hearing, or speech impaired person" Sec. 5. As used in this chapter, "deaf, hard of hearing, or speech impaired person" means a person who is so certified by a licensed physician, an otolaryngologist, a speech language pathologist, an audiologist, or a qualified state agency.

As added by P.L.75-1991, SEC.1. Amended by P.L.109-2012, SEC.3.

IC 8-1-2.8-6"Indiana Telephone Relay Access Corporation for the Hearing and Speech Impaired" Sec. 6. As used in this chapter, "Indiana Telephone Relay Access Corporation for the Hearing and Speech Impaired" or "InTRAC" means a corporation formed under IC 23-7-1.1 (before its repeal on August 1, 1991) or IC 23-17 that meets the requirements of section 18 of this chapter.

As added by P.L.75-1991, SEC.1. Amended by P.L.1-2010, SEC.39.

IC 8-1-2.8-7"Local exchange access service" Sec. 7. As used in this chapter, "local exchange access service" means telephone exchange access lines or channels that provide local access to the local telecommunications network to effect the transfer of information.

As added by P.L.75-1991, SEC.1.

IC 8-1-2.8-8"Local exchange company" Sec. 8. As used in this chapter, "local exchange company" or "LEC" refers to any communications service provider (as defined in IC 8-1-2.6-13(b)) that:

(1) has a certificate of territorial authority on file with the commission; and

(2) is required to provide dual party relay services to deaf, hard of hearing, and speech impaired persons under federal law.

As added by P.L.75-1991, SEC.1. Amended by P.L.27-2006, SEC.29; P.L.109-2012, SEC.4.

IC 8-1-2.8-9"Telephone company" Sec. 9. As used in this chapter, "telephone company" means:

(1) any natural person, firm, association, corporation, or partnership, owning, leasing, or operating any lines, facilities, or systems used in the furnishing of telephone service; and

(2) any common carrier or carrier as those terms are defined in Title IV of the ADA.

As added by P.L.75-1991, SEC.1.

IC 8-1-2.8-10Findings and declarations Sec. 10. The general assembly finds and declares the following:

(1) That it is in the public interest of the state to promptly provide deaf, hard of hearing, or speech impaired persons with access to telecommunications services that are functionally equivalent to those provided to hearing persons.

(2) That Title IV of the ADA mandates that each telephone company providing telephone service within the state must provide dual party relay services on or before July 26, 1993, to deaf, hard of hearing, and speech impaired persons within the territorial area or areas it serves in a manner that meets or exceeds the requirements of regulations prescribed by the FCC.

(3) That the most efficient, cost effective, and fair method for LECs to provide dual party relay services to deaf, hard of hearing, and speech impaired persons and to comply with the federal mandate without the use of tax revenues is the establishment of the Indiana Telephone Relay Access Corporation for the Hearing and Speech Impaired under this chapter.

(4) That the provision of dual party relay services to deaf, hard of hearing, and speech impaired persons can be enhanced by providing in appropriate circumstances in the sole discretion of the InTRAC telecommunications devices that facilitate access to the dual party relay services.

As added by P.L.75-1991, SEC.1. Amended by P.L.80-1996, SEC.1; P.L.27-2006, SEC.30; P.L.109-2012, SEC.5.

IC 8-1-2.8-11Residential and business lines; surcharge Sec. 11. Beginning on June 1, 1991, the commission shall require each LEC to impose a monthly surcharge in the amount of five cents ($0.05) on each residential and business line (or line equivalent) of its customers to fund and recover costs for developing and providing dual party relay services that may include in appropriate circumstances in the sole discretion of the InTRAC providing telecommunications devices to deaf, hard of hearing, and speech impaired persons.

As added by P.L.75-1991, SEC.1. Amended by P.L.80-1996, SEC.2; P.L.109-2012, SEC.6.

IC 8-1-2.8-12Adjustment of surcharge Sec. 12. (a) The InTRAC may periodically apply to the commission for an adjustment in the amount of the monthly surcharge that a LEC must impose on its customers under this chapter. Before applying to the commission for such an adjustment, the InTRAC must do the following:

(1) Employ an independent accounting firm to review its surcharge determinations and to review and audit those accounts of the InTRAC and its members relevant to the surcharge.

(2) File with the commission in connection with its application a copy of the report prepared by the accounting firm under subdivision (1).

(b) When the InTRAC applies for an adjustment under this section, the commission may perform audits and tests to verify the calculation of the adjustment. However, the sole purpose of audits and tests by the commission must be to assure that the revenue produced by the surcharge is sufficient to cover the costs incurred by the InTRAC in providing services that meet the requirements imposed on telephone companies by the ADA. The costs incurred by the InTRAC include the following:

(1) Costs for the development, continued operation and improvement of dual party relay services that may include in appropriate circumstances in the sole discretion of the InTRAC providing telecommunications devices to deaf, hard of hearing, and speech impaired persons.

(2) The administrative costs of the InTRAC.

(3) The amount of reasonable reserves necessary to meet future costs.

(4) The amounts paid by the InTRAC to each LEC to compensate the LEC for collection, inquiry, and other administrative services it provides for the surcharges.

(5) The amounts paid by the InTRAC to each LEC to compensate the LEC for the necessary costs incurred by the LEC in facilitating inter-connection with and effecting use of the dual party relay service for their respective customers.

(c) It is the intent and purpose of this section that the InTRAC shall have available to it at all times sufficient funding to develop, provide for, and maintain dual party relay services that meet or exceed the requirements imposed by the ADA.

As added by P.L.75-1991, SEC.1. Amended by P.L.80-1996, SEC.3; P.L.109-2012, SEC.7.

IC 8-1-2.8-13Approval of surcharge adjustment Sec. 13. Unless the commission disapproves an application by the InTRAC for a surcharge adjustment within ninety (90) days of the application, the commission shall approve the adjustment, and the LEC may charge and collect an adjusted surcharge. However, the commission may not approve an adjustment that results in a monthly surcharge that exceeds forty cents ($0.40) per residential or business line (or line equivalent).

As added by P.L.75-1991, SEC.1.

IC 8-1-2.8-14Monthly bill; collection of surcharge Sec. 14. A surcharge shall be collected on the regular monthly bill that a LEC sends to each of its customers. The surcharge may be separately identified on customers' bills as a special surcharge for the provision of services, including telecommunications devices as provided in section 10(4) of this chapter, to deaf, hard of hearing, and speech impaired persons.

As added by P.L.75-1991, SEC.1. Amended by P.L.1-1992, SEC.30; P.L.80-1996, SEC.4; P.L.109-2012, SEC.8.

IC 8-1-2.8-15Accounting and recovery of costs Sec. 15. All costs incurred by a LEC as a result of its compliance with the ADA requirements to provide services to deaf, hard of hearing, and speech impaired persons shall be accounted for separately and recovered as required by the ADA and the FCC.

As added by P.L.75-1991, SEC.1. Amended by P.L.109-2012, SEC.9.

IC 8-1-2.8-16Exemption from taxes and fees Sec. 16. The amount of money collected by a LEC in surcharges under this chapter is exempt from all state income taxes and all fees imposed under IC 8-1-6.

As added by P.L.75-1991, SEC.1.

IC 8-1-2.8-17Payments of surcharge Sec. 17. A LEC that collects a surcharge under this chapter shall pay the amount collected for the surcharge on the terms and in the manner determined under section 21(2) of this chapter to a not-for-profit corporation formed under IC 23-7-1.1 (before its repeal on August 1, 1991) or IC 23-17 and named "The Indiana Telephone Relay Access Corporation for the Hearing and Speech Impaired". However, no payments under this section may be made to the InTRAC until the following occur:

(1) The InTRAC files with the commission the following:

(A) A certificate of existence issued by the secretary of state that certifies that the InTRAC is in existence under Indiana law.

(B) A certificate in which two (2) authorized officers of the InTRAC certify that the corporation meets the requirements of section 18 of this chapter.

(C) A document executed by an authorized officer of the InTRAC in which the InTRAC agrees to meet the requirements of sections 18 and 21 of this chapter.

(2) Copies of the certificates described in subdivision (1)(A) and (1)(B) have been delivered to each LEC that collects the surcharge required by this chapter.

As added by P.L.75-1991, SEC.1. Amended by P.L.1-2010, SEC.40.

IC 8-1-2.8-18Articles of incorporation Sec. 18. The articles of incorporation of the InTRAC must provide the following:

(1) The name of the corporation shall be "Indiana Telephone Relay Access Corporation for the Hearing and Speech Impaired".

(2) The sole purpose for which the InTRAC shall be organized and operated is to provide at the lowest cost reasonably possible:

(A) on behalf of LECs and the citizens of Indiana; and

(B) in conjunction with LECs;

adequate and dependable dual party relay services that may include in appropriate circumstances in the sole discretion of the InTRAC telecommunications devices to deaf, hard of hearing, and speech impaired persons within the territorial area in Indiana that LECs serve in a manner that meets or exceeds the requirements of regulations prescribed by the FCC.

(3) The InTRAC must have authority to perform any lawful act that is necessary, convenient, or expedient to accomplish the purpose for which the InTRAC is formed.

(4) No part of the net earnings of the InTRAC may inure to the benefit of any member, director, or officer of the InTRAC, nor shall any member of the InTRAC receive any earnings from the corporation except as follows:

(A) A member may be an independent contractor, a supplier, a vendor, or an authorized agent of the InTRAC and may receive fair and reasonable compensation for the member's provision of goods or services.

(B) An officer may receive reasonable compensation for services that the officer performs in the officer's capacity as an officer of the InTRAC.

(C) A director may be reimbursed for expenses incurred by the director in the performance of the director's duties.

(5) The InTRAC may not:

(A) make an advancement for services to be performed in the future; or

(B) make a loan of money or property to any director or officer of the corporation.

(6) No member, director, or officer of the InTRAC or any private individual may share in the distribution of any of the assets of the InTRAC upon its dissolution.

(7) If there is a dissolution of the InTRAC, any of the assets of the InTRAC available for distribution shall be distributed to a charity:

(A) selected by the board of directors of the InTRAC; and

(B) having a purpose that includes providing services to persons who are deaf, hard of hearing, and speech impaired.

(8) The InTRAC shall have one (1) class of members consisting of those communications service providers that are designated as authorized LECs by the commission.

(9) Each member of the InTRAC shall serve as a member for as long as the commission finds that the member is a LEC. A member's:

(A) right to vote at meetings of the members of the InTRAC; and

(B) right, title, and interest in or to the corporation;

cease on the termination of a member's membership.

(10) Each member present in person or by proxy at a meeting of the members of the InTRAC may cast one (1) vote upon each question voted upon at:

(A) all meetings of the members; and

(B) in any election of a director of the InTRAC.

(11) The board of directors of the InTRAC consists of seven (7) directors selected as follows:

(A) Six (6) directors elected by the members of the InTRAC.

(B) The director of the state office of deaf and hearing impaired services.

(12) The business, property, and affairs of the InTRAC are managed and controlled by the board of directors of the InTRAC.

As added by P.L.75-1991, SEC.1. Amended by P.L.80-1996, SEC.5; P.L.27-2006, SEC.31; P.L.109-2012, SEC.10.

IC 8-1-2.8-19Articles of incorporation; additional provisions Sec. 19. The articles of incorporation of the InTRAC may contain provisions in addition to those specified in section 18 of this chapter that:

(1) the members of the InTRAC provide in accordance with IC 23-7-1.1 (before its repeal on August 1, 1991) or IC 23-17; and

(2) do not violate the provisions required under section 18 of this chapter.

As added by P.L.75-1991, SEC.1. Amended by P.L.1-2010, SEC.41.

IC 8-1-2.8-20Actions in pursuit of purposes Sec. 20. (a) In pursuit of its purpose, the InTRAC may do the following:

(1) Perform audits and tests of the accounts of a LEC to verify the amounts described in section 12 of this chapter.

(2) Provide by contract dual party relay services to communications service providers operating outside Indiana if the effect of the contract:

(A) is to decrease the amount of surcharges imposed on the customers of members of the InTRAC; and

(B) does not sacrifice the quality of service that InTRAC provides for those customers in the absence of a contract.

(b) The actions described in subsection (a) are examples and are not intended to limit in any way the scope or types of actions that the InTRAC may take in pursuit of its purposes.

As added by P.L.75-1991, SEC.1. Amended by P.L.27-2006, SEC.32.

IC 8-1-2.8-21Duties of InTRAC Sec. 21. The InTRAC shall do the following:

(1) Establish, implement, and administer, in whole or in part, a statewide dual party relay service system. Any contract for the supply or operation of a dual party relay service system or for the supply of telecommunications devices shall be provided through a competitively selected vendor.

(2) Determine the terms and manner in which each LEC shall pay to the InTRAC the surcharge required under this chapter.

(3) Annually review the costs it incurred during prior periods, make reasonable projections of anticipated funding requirements for future periods, and file a report of the results of the review and projections with the commission by May 1 of each year.

(4) Annually employ an independent accounting firm to prepare audited financial statements for the end of each fiscal year of the InTRAC to consist of:

(A) a balance sheet;

(B) a statement of income; and

(C) a statement of cash flow;

and file a copy of these financial statements with the commission before May 2 of each year.

(5) Enter into contracts with any LEC to provide dual party relay services for the LEC, upon request by the LEC. However, the InTRAC:

(A) shall require reasonable compensation from the LEC for the provision of these services;

(B) is not required to contract with its members; and

(C) shall provide dual party relay services to InTRAC members for communications service originating with the members' Indiana customers for no consideration other than the payment to the InTRAC of the surcharges collected by the member under this chapter.

(6) Send to each of its members and file with the governor and the general assembly before May 2 of each year an annual report that contains the following:

(A) A description of the InTRAC's activities for the previous fiscal year.

(B) A description and evaluation of the dual party relay services that the InTRAC provides.

(C) A report of the volume of services the InTRAC provided during the previous fiscal year.

(D) A copy of the financial statements that subdivision (4) requires.

A report filed under this subdivision with the general assembly must be in an electronic format under IC 5-14-6.

As added by P.L.75-1991, SEC.1. Amended by P.L.80-1996, SEC.6; P.L.28-2004, SEC.72; P.L.27-2006, SEC.33.

IC 8-1-2.8-22Use of InTRAC services by nonmembers Sec. 22. If:

(1) a communications service provider that is not a member of InTRAC originates, carries, or terminates, in whole or in part, any telecommunication message that uses the InTRAC's dual party relay services; and

(2) refuses to:

(A) enter into a contract with the InTRAC as provided in section 21(5) of this chapter; or

(B) pay any sums due under such a contract;

the InTRAC may apply to the commission for an order requiring just and reasonable payments or the payments that are due under the contract. The InTRAC may enforce this order in the courts of the state.

As added by P.L.75-1991, SEC.1. Amended by P.L.27-2006, SEC.34.

IC 8-1-2.8-23Exemption of InTRAC from commission jurisdiction; affiliated interests Sec. 23. (a) If the InTRAC meets the requirements of sections 18 and 21 of this chapter, the InTRAC:

(1) is not a public utility;

(2) is not a telephone company or a communications service provider; and

(3) is free from the jurisdiction and oversight of the commission except as specifically provided in this chapter.

(b) The InTRAC is not an affiliated interest (as defined in IC 8-1-2-49). An officer, a director, or a member of the InTRAC may not be construed to be an affiliated interest solely because that person or entity is an officer, a director, or a member of the InTRAC.

As added by P.L.75-1991, SEC.1. Amended by P.L.27-2006, SEC.35.

IC 8-1-2.8-24Charitable purposes; exemptions Sec. 24. If the InTRAC meets the requirements of sections 18 and 21 of this chapter, the InTRAC:

(1) for purposes of all taxes imposed by the state or any county or municipality in Indiana is an organization that is organized and operated exclusively for charitable purposes; and

(2) qualifies for all exemptions applicable to those organizations, including but not limited to those exemptions set forth in IC 6-2.5-5-25(a)(1)(B) and IC 6-1.1-10-16.

As added by P.L.75-1991, SEC.1. Amended by P.L.192-2002(ss), SEC.144; P.L.118-2024, SEC.28.

IC 8-1-2.8-25Immunity from civil liability Sec. 25. The following are not liable in any civil action for any injuries or loss to persons or property incurred by any person as a result of any act or omission of any person or entity listed in subdivisions (1) through (3) in connection with the development, adoption, implementation, maintenance, or operation of any system that provides dual party relay services or telecommunications devices, except for injuries or losses incurred as a result of willful or wanton misconduct:

(1) The InTRAC.

(2) A LEC providing dual party relay services.

(3) An employee, a director, an officer, or an agent of an entity listed in subdivision (1) or (2).

As added by P.L.75-1991, SEC.1. Amended by P.L.80-1996, SEC.7; P.L.27-2006, SEC.36.

IC 8-1-2.9Chapter 2.9. RepealedRepealed by P.L.256-2013, SEC.12; P.L.241-2013, SEC.4.

IC 8-1-3Chapter 3. Judicial Review of Utility Regulatory Commission Decisions

8-1-3-1Appeals; time limitations; assignments of error 8-1-3-2Petition for rehearing; time for ruling; actions for mandate; termination of right of appeal 8-1-3-3Petition to be made party applicant; intervenor or protestant 8-1-3-4Assignment of errors and transcript of record; filing 8-1-3-5Service of papers 8-1-3-6Presumption; rates; collection pending appeal 8-1-3-7Determination of appeal; remand of proceedings for rehearing; injunctions 8-1-3-8Costs 8-1-3-9Opposing affidavits; time to file 8-1-3-10Questions of law; certification by commission 8-1-3-11Enforcement proceedings by commission 8-1-3-12Repealed