Indiana § 8-1-31-17 - Adoption of other procedures

§ 8-1-31-17. Adoption of other procedures

Sec. 17. The commission may adopt by rule under IC 4-22-2 or by order other procedures not inconsistent with this chapter that the commission finds reasonable or necessary to administer this chapter.

As added by P.L.94-2000, SEC.1. Amended by P.L.209-2014, SEC.16.

IC 8-1-31.5Chapter 31.5. System Integrity Adjustments

8-1-31.5-1Definitions 8-1-31.5-2"Actual revenues" 8-1-31.5-3"Adjustment amount" 8-1-31.5-4"Adjustment revenues" 8-1-31.5-5"Authorized revenues" 8-1-31.5-6"Cumulative excess or deficit" 8-1-31.5-7"Eligible utility" 8-1-31.5-8"Not-for-profit utility" 8-1-31.5-9"System integrity adjustment" 8-1-31.5-10"System integrity collar" 8-1-31.5-11Limit on system integrity adjustment; allocation 8-1-31.5-12Petition for system integrity adjustment; requirements; utility consumer counselor; hearing and order; duration of system integrity adjustment 8-1-31.5-13Utility granted system integrity adjustment is required to petition for change in its adjustment amount 8-1-31.5-14Utility's cumulative excess or deficit must be reset to zero 8-1-31.5-15Utility must reconcile difference between adjustment amount and adjustment revenues 8-1-31.5-16Approval of utility's system integrity adjustment petition is not a general increase in basic rates and charges 8-1-31.5-17Comparison of actual revenues and authorized revenues to be included in utility's annual report 8-1-31.5-18Rules or procedures to administer chapter

IC 8-1-31.5-1Definitions Sec. 1. The definitions in IC 8-1-2-1 apply throughout this chapter.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-2"Actual revenues" Sec. 2. As used in this chapter, "actual revenues" means the annual operating revenues that an eligible utility receives or accrues for a twelve (12) month period authorized for recovery through basic rates and charges approved by the commission in the eligible utility's most recent general rate case. However, the term does not include the following:

(1) Revenues received through an infrastructure improvement charge approved by the commission under IC 8-1-31.

(2) Revenues from the operation of a utility that an eligible utility acquires after the commission's most recent order establishing the eligible utility's level of annual operating revenues authorized for recovery by the eligible utility through existing rates and charges.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-3"Adjustment amount" Sec. 3. As used in this chapter, "adjustment amount" means the dollar amount:

(1) by which an eligible utility's actual revenues for a twelve (12) month period differ from the eligible utility's authorized revenues for the same twelve (12) month period; and

(2) that the eligible utility seeks to recover from or credit to customers through a system integrity adjustment requested in a petition filed under section 12 or 13 of this chapter.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-4"Adjustment revenues" Sec. 4. As used in this chapter, "adjustment revenues" means revenues produced through application of a system integrity adjustment. The term does not include revenue from other rates and charges.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-5"Authorized revenues" Sec. 5. As used in this chapter, "authorized revenues" means the annual operating revenues of an eligible utility approved by the commission for a twelve (12) month period in the eligible utility's most recent general rate case.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-6"Cumulative excess or deficit" Sec. 6. As used in this chapter, "cumulative excess or deficit" means the amount by which an eligible utility's actual revenues are:

(1) in the case of an excess, greater than; or

(2) in the case of a deficit, less than;

the eligible utility's authorized revenues measured on a cumulative annual basis from the effective date of the commission's order in the eligible utility's most recent general rate case proceeding.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-7"Eligible utility" Sec. 7. As used in this chapter, "eligible utility" means a:

(1) public utility;

(2) municipally owned utility; or

(3) not-for-profit utility;

that provides water or wastewater service and is under the jurisdiction of the commission for the approval of rates and charges.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-8"Not-for-profit utility" Sec. 8. As used in this chapter, "not-for-profit utility" has the meaning set forth in IC 8-1-2-125(a). The term includes a utility company that is owned, operated, or held in trust by a consolidated city.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-9"System integrity adjustment" Sec. 9. As used in this chapter, "system integrity adjustment" means an amount charged by an eligible utility to allow the automatic adjustment of the eligible utility's basic rates and charges to recover from or credit to customers an adjustment amount.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-10"System integrity collar" Sec. 10. As used in this chapter, "system integrity collar" means a dollar amount that is equal to the product of:

(1) an eligible utility's authorized revenues; multiplied by

(2) two hundredths (0.02).

An eligible utility's system integrity collar is satisfied when the eligible utility's cumulative excess or deficit equals or exceeds the eligible utility's system integrity collar.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-11Limit on system integrity adjustment; allocation Sec. 11. (a) A system integrity adjustment may not exceed the product of an eligible utility's adjustment amount multiplied by ninety-four hundredths (0.94).

(b) For purposes of the credit or recovery of an adjustment amount, a system integrity adjustment must be allocated only to an eligible utility's non-industrial rate classes.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-12Petition for system integrity adjustment; requirements; utility consumer counselor; hearing and order; duration of system integrity adjustment Sec. 12. (a) An eligible utility that is not collecting a system integrity adjustment may file with the commission a petition setting forth rate schedules that establish a system integrity adjustment to recover from or credit to customers the eligible utility's adjustment amount. The petition must establish that the eligible utility's system integrity collar has been satisfied on a cumulative basis following the effective date of the commission's order in the eligible utility's most recent general rate case. The eligible utility's system integrity collar may not be included in the calculation of its adjustment amount. The eligible utility shall certify in the petition that the eligible utility will use any adjustment revenues for eligible infrastructure improvements (as defined in IC 8-1-31-5).

(b) An eligible utility shall serve the office of the utility consumer counselor a copy of the petition at the same time the petition is filed with the commission. The office of the utility consumer counselor may do the following:

(1) Examine information of the eligible utility to confirm proper calculation of the proposed system integrity adjustment.

(2) Submit a report of the examination to the commission not later than thirty (30) days after the petition is filed.

(c) The commission shall hold a hearing on the petition and issue its order not later than ninety (90) days after the petition is filed.

(d) If the commission determines that the system integrity adjustment is properly calculated, the commission shall enter an order approving the petition. The system integrity adjustment may be collected until the earlier of the following:

(1) Forty-eight (48) months after the date set forth in the order entered under this subsection on which the eligible utility may begin collecting the system integrity adjustment.

(2) The date on which the commission issues an order in the eligible utility's next general rate case proceeding.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-13Utility granted system integrity adjustment is required to petition for change in its adjustment amount Sec. 13. (a) This section applies to an eligible utility for which the commission has issued an order approving a petition under section 12(d) of this chapter.

(b) An eligible utility shall file a petition for a change in its adjustment amount:

(1) not more than thirty (30) days after the end of each twelve (12) month period following the date on which the eligible utility files a petition under section 12 of this chapter; and

(2) until the commission issues an order in the eligible utility's next general rate case proceeding after the commission approves a system integrity adjustment.

(c) An eligible utility shall serve the office of the utility consumer counselor a copy of the petition at the same time the petition is filed with the commission.

(d) The commission shall hold a hearing on the petition and issue its order not later than ninety (90) days after the petition is filed.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-14Utility's cumulative excess or deficit must be reset to zero Sec. 14. For purposes of satisfying a system integrity collar, an eligible utility's cumulative excess or deficit shall be reset to zero (0) upon the effective date of the commission's order in the eligible utility's next general rate case proceeding after the commission approves a system integrity adjustment.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-15Utility must reconcile difference between adjustment amount and adjustment revenues Sec. 15. At the same time an eligible utility files a petition under section 13 of this chapter, the eligible utility shall reconcile the difference between:

(1) the adjustment amount approved by the commission for a previous twelve (12) month period; and

(2) the adjustment revenues received by the eligible utility during the same twelve (12) month period.

The eligible utility may recover from or credit to customers the reconciliation amount through a system integrity adjustment by filing a petition under section 12 of this chapter.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-16Approval of utility's system integrity adjustment petition is not a general increase in basic rates and charges Sec. 16. For purposes of IC 8-1-2-42(a), the approval of a petition filed under section 12 or 13 of this chapter is not a general increase in basic rates and charges.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-17Comparison of actual revenues and authorized revenues to be included in utility's annual report Sec. 17. An eligible utility that:

(1) is subject to the jurisdiction of the commission; and

(2) serves five thousand (5,000) or more customers;

shall include in its annual report to the commission on a form prescribed by the commission under IC 8-1-2-12 a comparison of actual revenues and authorized revenues for the period covered by the report.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.5-18Rules or procedures to administer chapter Sec. 18. The commission shall adopt by rule under IC 4-22-2 or by order other procedures not inconsistent with this chapter that the commission finds reasonable or necessary to administer this chapter.

As added by P.L.104-2016, SEC.3.

IC 8-1-31.6Chapter 31.6. Customer Owned Lead Service Lines

8-1-31.6-1"Commission" 8-1-31.6-2"Customer lead service line improvement" 8-1-31.6-3"Eligible infrastructure improvements" 8-1-31.6-4"Water utility" 8-1-31.6-5Commission approval of water utility's plan for customer lead service line improvements 8-1-31.6-6Water utility plans; nonresponsive property owner; authority of water utility; liability; multi-family residential properties; disconnection of service; approval; ratemaking treatment 8-1-31.6-7Inclusion of costs of customer lead service line improvements as eligible infrastructure improvements for public utilities 8-1-31.6-8Inclusion of costs of customer lead service line improvements in rates of municipally owned utility 8-1-31.6-9Customer lead service line improvement costs for municipally owned utilities 8-1-31.6-10Petition by municipally owned utility for rate adjustment 8-1-31.6-11Hearing and order on petition by municipally owned utility 8-1-31.6-12Petition for change in initial adjustment amount by municipally owned utility 8-1-31.6-13Allowable recovery for municipally owned utility; factors 8-1-31.6-14Adjustment amount calculation and reconciliation procedures for municipally owned utility 8-1-31.6-15Resetting of adjustment amount after increase in basic rates and charges for municipally owned utility 8-1-31.6-16Commission to adopt rules

IC 8-1-31.6-1"Commission" Sec. 1. As used in this chapter, "commission" refers to the Indiana utility regulatory commission created by IC 8-1-1-2.

As added by P.L.91-2017, SEC.8.

IC 8-1-31.6-2"Customer lead service line improvement" Sec. 2. As used in this chapter, "customer lead service line improvement" means an expenditure that is:

(1) related to a lead service line, including any galvanized steel service line that is or has been connected to any upstream component made of lead or of an unknown material, that is owned by a customer of a water utility;

(2) made by a water utility; and

(3) related to a water utility's plan to replace lead service lines within or connected to the water utility's system, including lines owned by the customer and lines owned by the water utility.

As added by P.L.91-2017, SEC.8. Amended by P.L.15-2019, SEC.8; P.L.6-2024, SEC.1.

IC 8-1-31.6-3"Eligible infrastructure improvements" Sec. 3. As used in this chapter, "eligible infrastructure improvements" has the meaning set forth in IC 8-1-31-5.

As added by P.L.91-2017, SEC.8.

IC 8-1-31.6-4"Water utility" Sec. 4. (a) As used in this chapter, "water utility" means:

(1) a public utility (as defined in IC 8-1-2-1(a)); or

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

that provides water service to the public, and that is under the commission's authority with respect to rates and charges.

(b) For purposes of this chapter, a municipally owned utility includes a utility company owned, operated, or held in trust by a consolidated city.

As added by P.L.91-2017, SEC.8. Amended by P.L.137-2020, SEC.2; P.L.6-2024, SEC.2.

IC 8-1-31.6-5Commission approval of water utility's plan for customer lead service line improvements Sec. 5. (a) Before a water utility may seek to include customer lead service line improvements as eligible infrastructure improvements:

(1) for purposes of IC 8-1-31, for public utilities; or

(2) for purpose of this chapter, for municipally owned utilities;

the water utility must first obtain approval from the commission of the water utility's plan for the customer lead service line improvements. To seek approval of the water utility's plan for the customer lead service line improvements, the water utility shall file with the commission a petition and a case-in-chief, including the information set forth in section 6 of this chapter.

(b) After holding a properly noticed public hearing, the commission shall approve the water utility's plan under this section if the commission makes the required findings under section 6 of this chapter.

(c) The commission shall issue the commission's final order on the water utility's petition not later than two hundred ten (210) days after the filing of the water utility's case-in-chief.

As added by P.L.91-2017, SEC.8. Amended by P.L.137-2020, SEC.3.

IC 8-1-31.6-6Water utility plans; nonresponsive property owner; authority of water utility; liability; multi-family residential properties; disconnection of service; approval; ratemaking treatment Sec. 6. (a) As used in this section, "occupant", with respect to any:

(1) building;

(2) structure; or

(3) dwelling;

that is served by a lead service line, means a person in actual possession of and residing in or occupying the building, structure, or dwelling.

(b) As used in this section, "owner", with respect to any:

(1) building;

(2) structure; or

(3) dwelling;

that is served by a lead service line, means a person who has legal title to the building, structure, or dwelling, as indicated by the property tax records of the county in which the property is located, or by the account or other customer or billing records maintained by the water utility with respect to the property, regardless of whether the person is in actual possession of and residing in or occupying the building, structure, or dwelling.

(c) Before a water utility is authorized to include customer lead service line improvements as eligible infrastructure improvements for purposes of IC 8-1-31, for a public utility, or for purposes of this chapter, for a municipally owned utility, the commission must first approve the water utility's plan for the replacement of the customer owned portion of the lead service lines within or connected to the water utility's system. The water utility's plan must address the following:

(1) The availability of grants or low interest loans and how the water utility plans to use available grants or low interest loans to help the water utility finance or reduce the cost of the customer lead service line improvements for the water utility and the water utility's customers, including any arrangements for the customer to receive available grants or financing directly.

(2) A description of how the replacement of customer owned lead service lines will be accomplished in conjunction with distribution system infrastructure replacement projects.

(3) The estimated savings in costs per service line that would be realized by the water utility replacing the customer owned portion of the lead service lines versus the anticipated replacement costs if customers were required to replace the customer owned portion of the lead service lines.

(4) The number of lead mains and lead service lines estimated to be part of the water utility's system.

(5) A range for the number of customer owned lead service lines estimated to be replaced annually.

(6) A range for the total feet of lead mains estimated to be replaced annually.

(7) The water utility's proposal for addressing the costs of unusual site restoration work necessitated by structures or improvements located above the customer owned portion of the lead service lines.

(8) The water utility's proposal for communicating with the customer the availability of the water utility's plan to replace the customer owned portion of the lead service line in conjunction with the water utility's replacement of the utility owned portion of the lead service line.

(9) The water utility's proposal concerning whether the water utility or the customer will be responsible for future replacement or repair of the portion of the new service line corresponding to the previous customer owned lead service line.

(10) The estimated total cost to replace all customer owned portions of the lead service lines within or connected to the water utility's system and an estimated range for the annual cost to be incurred by the water utility under the water utility's plan.

(d) Notwithstanding the terms of a water utility's plan for the replacement of the customer owned portion of the lead service lines within or connected to the water utility's system, the following apply to the owner of a building, structure, or dwelling that is served by a customer owned lead service line within or connected to the water utility's system:

(1) Upon request by the water utility, the owner of a building, structure, or dwelling, other than a multi-family residential property that contains more than four (4) dwelling units, shall replace, or cause to be replaced, the customer owned portion of the lead service line by either of the following methods:

(A) Enrolling in the lead service line replacement program offered by the water utility and, after enrolling, allowing the water utility or the water utility's agents to access the owner's property, at no cost to the water utility, to conduct the replacement in accordance with the water utility's plan.

(B) Replacing the customer owned portion of the lead service line through the owner's own agents or contractors and at the owner's own expense. If the owner elects to replace the customer owned portion of the lead service line under this clause, the replacement must be completed not later than forty-five (45) days after the water utility first communicates to the owner the availability of the water utility's program to replace the customer owned portion of the lead service line.

(2) If the owner of a building, structure, or dwelling, other than a multi-family residential property that contains more than four (4) dwelling units:

(A) does not enroll in the lead service line replacement program offered by the water utility;

(B) does not replace the customer owned portion of the lead service line through the owner's own agents or contractors and at the owner's own expense within the forty-five (45) day period described in subdivision (1)(B); or

(C) fails to communicate with the water utility, or is nonresponsive to the water utility's attempted communications, regarding the replacement of the customer owned portion of the lead service line;

the water utility or the water utility's agent may, after the expiration of the forty-five (45) day period described in subdivision (1)(B), enter the property to replace the customer owned portion of the lead service line without having obtained the permission of the owner with respect to the entry or the replacement. A water utility, including an agent of the water utility, that enters an owner's property and conducts a replacement under this subdivision shall be held harmless by and is not liable to the owner with respect to the entry or the replacement. If the property is occupied by an occupant other than the owner, and the occupant grants the water utility or the water utility's agent access to the property to conduct a replacement under this subdivision, the occupant shall also be held harmless by and is also not liable to the owner with respect to the entry or the replacement. Notwithstanding the terms of the water utility's plan for the replacement of customer owned lead service lines, a water utility that conducts a replacement under this subdivision is not liable for any property restoration costs necessitated by the replacement and that exceed five hundred dollars ($500). The owner is responsible for the completion and cost of any property restoration work necessitated by the replacement and exceeding the five hundred dollar ($500) limit set forth in this subdivision. A water utility that enters an owner's property as permitted under this subdivision is not liable to the owner for any cost for access to, or for an easement on, the property.

(3) Upon request by the water utility, the owner of a multi-family residential property that contains more than four (4) dwelling units may elect to participate in the water utility's lead service line replacement program. An owner shall communicate to the water utility the owner's election to participate in the water utility's program under this subdivision not later than forty-five (45) days after receiving the water utility's request. If the owner does not communicate the owner's election to participate in the water utility's program within the forty-five (45) day period set forth in this subdivision, the owner, or any future owner of the property, is responsible for replacing the customer owned portion of the lead service line through the owner's own agents or contractors and at the owner's own expense.

(4) In any case in which the conditions set forth in subdivision (2) apply and in which the water utility attempts to avail itself of the remedies set forth in subdivision (2) but is prevented from doing so by the owner of the property, the water utility may, in accordance with state law and rules adopted by the commission, disconnect water service to the property. Before water service may be restored to the property, the owner must provide the water utility with proof that:

(A) the owner has enrolled in the water utility's lead service line replacement program under subdivision (1)(A); or

(B) the customer owned service line has been replaced in accordance with subdivision (1)(B).

(5) In the case of any:

(A) building;

(B) structure; or

(C) dwelling;

that the water utility has determined, in accordance with any applicable law, to be abandoned or unserviceable, the water utility may disconnect water service to the property and require the owner, or any future owner, of the property to install a new service line through the owner's own agents or contractors and at the owner's own expense.

(6) The provisions set forth in this subsection may be incorporated into a water utility's plan that has been previously approved by the commission under this section. A water utility that incorporates the provisions set forth in this subsection into a previously approved plan is not required to obtain any additional approval from the commission with respect to the incorporated provisions.

(e) The commission shall approve a water utility's plan if the commission finds the plan to be reasonable and in the public interest. Subject to subsection (f), in general rate cases following the approval of a public utility's plan, the commission shall for ratemaking purposes add to the value of the public utility's property for purposes of IC 8-1-2-6 the actual costs incurred by the public utility in replacing the customer owned portion of the lead service lines and in removing customer owned lead service lines from service in accordance with the public utility's plan, notwithstanding the continued ownership of the service line by the customer.

(f) To the extent a water utility incurs an annual cost under the water utility's plan in excess of the range set forth in subsection (c)(10) and approved by the commission under subsection (e), the additional costs are not eligible for the ratemaking treatment provided for in this section or in section 7, 8, or 10 of this chapter.

As added by P.L.91-2017, SEC.8. Amended by P.L.137-2020, SEC.4; P.L.32-2021, SEC.17; P.L.6-2024, SEC.3; P.L.1-2025, SEC.121.

IC 8-1-31.6-7Inclusion of costs of customer lead service line improvements as eligible infrastructure improvements for public utilities Sec. 7. Subject to section 6(f) of this chapter, in the case of a water utility that is a public utility, upon the commission's approval of the water utility's plan under section 6 of this chapter, the water utility may include the actual costs incurred by the water utility in connection with completing customer lead service line improvements that:

(1) have been placed in service; and

(2) have not been included in the water utility's rate base in the water utility's most recent general rate case;

as eligible infrastructure improvements for purposes of IC 8-1-31. For purposes of the revenue limitation calculation under IC 8-1-31-13, infrastructure improvement costs associated with customer lead service line improvements shall not be counted as adjustment revenues in determining whether the water utility's total adjustment revenues exceed ten percent (10%) of the water utility's base revenue level approved in the water utility's most recent general rate case.

As added by P.L.91-2017, SEC.8. Amended by P.L.137-2020, SEC.5; P.L.6-2024, SEC.4.

IC 8-1-31.6-8Inclusion of costs of customer lead service line improvements in rates of municipally owned utility Sec. 8. Subject to section 6(f) of this chapter, in the case of a water utility that is a municipally owned utility, upon the commission's approval of the water utility's plan under section 6 of this chapter, the water utility may include in the water utility's rates the costs for customer lead service line improvements that:

(1) are made, or are to be made, by the water utility;

(2) do not increase revenues by connecting to new customers, even though the plant or equipment may provide the water utility with available capacity greater than the available capacity provided to the customer before the line improvements;

(3) are or will be an extension or replacement consistent with section 9 of this chapter; and

(4) were not included on the water utility's balance sheet as plant in service in the water utility's most recent general rate case.

As added by P.L.137-2020, SEC.6. Amended by P.L.6-2024, SEC.5.

IC 8-1-31.6-9Customer lead service line improvement costs for municipally owned utilities Sec. 9. For a municipally owned utility, customer lead service line improvement costs include the following:

(1) Depreciation expenses.

(2) Extensions and replacements for customer lead service line improvements, to the extent that the extensions and replacements are not provided for through depreciation, in the manner provided for in IC 8-1.5-3-8.

(3) Debt service on funds borrowed to pay for customer lead service line improvements.

(4) As applicable, property taxes to be paid by the utility based upon the first assessment date following the placement in service of the customer lead service line improvements.

As added by P.L.137-2020, SEC.7.

IC 8-1-31.6-10Petition by municipally owned utility for rate adjustment Sec. 10. (a) Except as provided in subsection (d), a municipally owned utility may file with the commission a petition setting forth rate schedules establishing an amount that will allow the adjustment of the utility's basic rates and charges to provide for recovery of customer lead service line improvement costs. The adjustment shall be calculated as a monthly fixed charge based upon meter size.

(b) The municipally owned utility shall serve upon the office of the utility consumer counselor a copy of its filing at the time of its filing with the commission.

(c) Publication of notice of the filing is not required.

(d) A municipally owned utility may not file a petition under this section in the same calendar year in which the utility has filed a request for a general increase in the basic rates and charges of the municipally owned utility.

As added by P.L.137-2020, SEC.8.

IC 8-1-31.6-11Hearing and order on petition by municipally owned utility Sec. 11. (a) When a petition is filed under section 10 of this chapter, the commission shall conduct a hearing.

(b) The office of the utility consumer counselor may:

(1) examine information of the municipally owned utility to confirm:

(A) that the customer lead service line improvements made or to be made are in accordance with section 9 of this chapter; and

(B) proper calculation of the adjustment amount proposed under section 10(a) of this chapter; and

(2) submit a report to the commission not later than thirty (30) days after the petition is filed.

(c) The commission shall hold the hearing and issue its order not later than sixty (60) days after the petition is filed.

(d) If the commission finds that a petition filed under section 10 of this chapter complies with the requirements of this chapter, the commission shall enter an order approving the petition.

As added by P.L.137-2020, SEC.9.

IC 8-1-31.6-12Petition for change in initial adjustment amount by municipally owned utility Sec. 12. (a) Except as provided in subsection (b), a municipally owned utility may, but is not required to, file a petition for a change in its initial adjustment amount not more often than one (1) time every twelve (12) months. Section 10 of this chapter applies to a petition to change an adjustment rider.

(b) Except as provided in section 15 of this chapter, a municipally owned utility may not file a petition described in subsection (a) in the same calendar year in which the utility has filed a request for a general increase in the basic rates and charges of the utility.

As added by P.L.137-2020, SEC.10.

IC 8-1-31.6-13Allowable recovery for municipally owned utility; factors Sec. 13. In determining the amount of allowable recovery of customer lead service line improvement costs for a municipally owned utility, the commission may consider the following factors:

(1) Extensions and replacements, to the extent that the extensions and replacements are not provided for through depreciation, in the manner provided for in IC 8-1.5-3-8.

(2) Debt service on funds borrowed to pay for customer lead service line improvements.

(3) Depreciation expenses on customer lead service line improvements based on the same rate or rates of depreciation approved by the commission for the calculation of depreciation in the utility's most recent rate case.

(4) Other components that the commission considers appropriate.

As added by P.L.137-2020, SEC.11.

IC 8-1-31.6-14Adjustment amount calculation and reconciliation procedures for municipally owned utility Sec. 14. An adjustment amount proposed under section 10 of this chapter may be calculated based on a reasonable estimate of equivalent meters in the period in which the charge will be in effect. At the end of each twelve (12) month period following the date on which the commission initially approves an adjustment amount for a municipally owned utility following the utility's most recent general rate case, the municipally owned utility, using procedures approved by the commission, shall reconcile the difference between revenues under the adjustment rider and customer lead service line improvement costs during that period and recover or refund the difference, as appropriate, through additional adjustments to the adjustment rider.

As added by P.L.137-2020, SEC.12.

IC 8-1-31.6-15Resetting of adjustment amount after increase in basic rates and charges for municipally owned utility Sec. 15. A municipally owned utility's adjustment rider approved under sections 10 and 12 of this chapter shall be reset to zero (0) upon the approval of new basic rates and charges for the utility by the commission in a general rate case in which the customer lead service line improvements are included in the utility's rate base.

As added by P.L.137-2020, SEC.13.

IC 8-1-31.6-16Commission to adopt rules Sec. 16. The commission shall adopt rules under IC 4-22-2 to implement this chapter.

As added by P.L.137-2020, SEC.14.

IC 8-1-31.7Chapter 31.7. Service Enhancement Improvement Projects for Water and Wastewater Utilities

8-1-31.7-1Applicability of definitions 8-1-31.7-2"Eligible addition" 8-1-31.7-3"Eligible utility" 8-1-31.7-4"Not-for-profit utility" 8-1-31.7-5"Pretax return" 8-1-31.7-6"Requirement" 8-1-31.7-7"Service enhancement improvement" 8-1-31.7-8"Service enhancement improvement costs" 8-1-31.7-9Eligible utility's plan for proposed improvement; preapproval by commission; public hearing; findings; final order; exception to preapproval requirement; recovery of costs 8-1-31.7-9.1Recalculation of chemical costs and power costs for purposes of adjustment rider 8-1-31.7-9.2Commission order approving adjustment rider for recovery of chemical costs or power costs; petition for change in adjustment amount; hearing and order on petition 8-1-31.7-10Plan for improvements related to compliance with certain requirements; factors for commission's consideration 8-1-31.7-11Plan for improvements related to compliance with regulation imposed by local government 8-1-31.7-12Eligible utility's petition for adjustment rider; recovery of costs; hearing; order; costs for replacement of plant or equipment; recovery of chemical costs or power costs not subject to deferral 8-1-31.7-13Pretax return for public utility; factors for commission's consideration 8-1-31.7-14Cost of common equity for public utility 8-1-31.7-15Recovery of costs for municipally owned utility; factors for commission's consideration 8-1-31.7-16Recovery of costs for not-for-profit utility; factors for commission's consideration 8-1-31.7-17Adjustment amount calculation and reconciliation procedures 8-1-31.7-18Petition to change adjustment rider 8-1-31.7-19Resetting of adjustment rider after increase in basic rates and charges 8-1-31.7-20Commission to adopt rules

IC 8-1-31.7-1Applicability of definitions Sec. 1. The definitions in IC 8-1-2-1 apply throughout this chapter.

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-2"Eligible addition" Sec. 2. As used in this chapter, "eligible addition" means any new utility plant or equipment:

(1) that does not increase revenues by connecting to new customers, even though the plant or equipment may provide the eligible utility with greater available capacity; and

(2) that:

(A) for a public utility:

(i) is used and useful;

(ii) is procured, installed, or constructed by the public utility with expenditures that are service enhancement improvements; and

(iii) was not included in the public utility's rate base in its most recent general rate case; or

(B) for a municipally owned or not-for-profit utility:

(i) is or will be an extension or replacement, consistent with section 8 of this chapter; and

(ii) was not included on the utility's balance sheet as plant in service in the utility's most recent general rate case.

As added by P.L.137-2020, SEC.15. Amended by P.L.32-2021, SEC.18.

IC 8-1-31.7-3"Eligible utility" Sec. 3. As used in this chapter, "eligible utility" means:

(1) a public utility;

(2) a municipally owned utility; or

(3) a not-for-profit utility;

that provides water or wastewater service to the public and is under the jurisdiction of the commission for the approval of rates and charges.

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-4"Not-for-profit utility" Sec. 4. (a) As used in this chapter, "not-for-profit utility" has the meaning set forth in IC 8-1-2-125(a).

(b) The term includes a utility company that is owned, operated, or held in trust by a consolidated city.

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-5"Pretax return" Sec. 5. As used in this chapter, "pretax return" means the revenues necessary:

(1) to produce net operating income equal to a public utility's weighted cost of capital multiplied by the net original cost of the eligible addition; and

(2) to pay state and federal income taxes applicable to the net operating income described in subdivision (1).

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-6"Requirement" Sec. 6. As used in this chapter, "requirement" means any decision or regulation imposed on an eligible utility by a unit (as defined in IC 36-1-2-23), a municipal corporation (as defined in IC 36-1-2-10), a state, or the federal government in connection with any of the following:

(1) The federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).

(2) The federal Safe Drinking Water Act (42 U.S.C. 300f et seq.).

(3) Any other law, order, or regulation administered by the United States Environmental Protection Agency, the United States Army Corps of Engineers, the United States Department of Transportation, the Indiana department of transportation, the Indiana department of environmental management, or the department of natural resources.

(4) Regulation imposed by local government under IC 8-1-2-101, IC 36-9-2-14, IC 36-9-2-15, or IC 36-9-2-16.

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-7"Service enhancement improvement" Sec. 7. As used in this chapter, "service enhancement improvement" means an expenditure that is either of the following:

(1) Made, or to be made, by an eligible utility and related to:

(A) direct or indirect compliance with one (1) or more requirements; or

(B) installation of a new plant or equipment:

(i) that is not a replacement plant or equipment; and

(ii) that the commission determines is reasonable and appropriate to further health, safety, or environmental protection for the eligible utility's customers, employees, or the public.

(2) Any of the following that are made, or to be made, or incurred, or to be incurred, to maintain existing health, safety, or environmental protection for the eligible utility's customers, employees, or the public:

(A) Replacement of a plant or equipment.

(B) Subject to section 9.1 of this chapter, chemical costs recorded in:

(i) Account 618; or

(ii) Account 718;

of the National Association of Regulatory Utility Commissioners Uniform System of Accounts as adopted by the commission under 170 IAC 6-2-2.

(C) Subject to section 9.1 of this chapter, power costs recorded in:

(i) Account 615; or

(ii) Account 715;

of the National Association of Regulatory Utility Commissioners Uniform System of Accounts as adopted by the commission under 170 IAC 6-2-2.

As added by P.L.137-2020, SEC.15. Amended by P.L.127-2026, SEC.4.

IC 8-1-31.7-8"Service enhancement improvement costs" Sec. 8. (a) As used in this chapter, "service enhancement improvement costs" means costs that an eligible utility incurs in connection with an eligible addition, including the following:

(1) Depreciation expenses.

(2) For a municipally owned utility or a not-for-profit utility, extensions and replacements, to the extent that the extensions and replacements are not provided for through depreciation, in the manner provided for in IC 8-1.5-3-8 or IC 8-1-2-125.

(3) For a municipally owned utility or a not-for-profit utility, debt service on funds borrowed to pay for the eligible addition.

(4) Property taxes to be paid by the eligible utility based upon the first assessment date following the placement in service of the eligible addition.

(5) Pretax return for a public utility.

(b) The term does not include fines or penalties assessed against or imposed on an eligible utility for violating laws, regulations, or consent decrees related to a requirement.

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-9Eligible utility's plan for proposed improvement; preapproval by commission; public hearing; findings; final order; exception to preapproval requirement; recovery of costs Sec. 9. (a) Except as provided in subsection (e), before an eligible utility may seek to recover its service enhancement improvement costs through a periodic rate adjustment under section 12 of this chapter, it must first obtain preapproval from the commission of its plan for the proposed service enhancement improvement or improvements. The eligible utility must file with the commission a petition and a case in chief, including supporting information described in section 10 or 11 of this chapter, as applicable. If the petition includes a request for an allocation of costs under IC 8-1-30.3-6.5, the eligible utility shall provide a copy of:

(1) the petition; and

(2) the eligible utility's case in chief;

to each intervenor in the eligible utility's last general rate case.

(b) After holding a public hearing for which proper notice is given under IC 8-1-1-8, the commission shall preapprove the eligible utility's plan under this section if the commission makes the required findings under section 10 or 11 of this chapter, as applicable. If the service enhancement improvement is not described in section 7(1)(A) of this chapter, the commission shall preapprove the eligible utility's plan under this section if the commission makes the required finding under section 7(1)(B)(ii) of this chapter.

(c) The commission shall issue its final order on the petition not later than two hundred ten (210) days after the filing of the eligible utility's case in chief.

(d) An eligible utility may have more than one (1) plan, and an eligible utility may file separate petitions for separate plans.

(e) An eligible utility is not required to seek preapproval of a plan in order to seek recovery under section 12 of this chapter for:

(1) service enhancement improvements that are described in section 7(2)(A) of this chapter; or

(2) costs that are described in section 7(2)(B) or 7(2)(C) of this chapter.

(f) This subsection does not apply to an adjustment rider under section 12 of this chapter for the recovery of costs described in section 7(2)(B) or 7(2)(C) of this chapter. If the commission approves an eligible utility's plan under this section, or if approval is otherwise not required, the commission shall approve a rider authorizing timely recovery of the eligible utility's service enhancement improvement costs under section 12 of this chapter. The following apply to the utility's timely recovery:

(1) Eighty percent (80%) of the eligible utility's service enhancement improvement costs shall be recovered by the eligible utility through a periodic rate adjustment mechanism that allows the timely recovery of the approved service enhancement improvement costs.

(2) Twenty percent (20%) of the eligible utility's service enhancement improvement costs, including depreciation, allowance for funds used during construction, and post in service carrying costs, compounded monthly and based on the overall cost of capital most recently approved by the commission, shall be deferred and recovered by the eligible utility as part of its next general rate case filed by the eligible utility with the commission.

(3) Actual costs that exceed by more than twenty-five percent (25%) the projected costs set forth in the eligible utility's plan approved under this section require specific justification by the eligible utility and specific approval by the commission before being authorized in the next general rate case filed by the eligible utility with the commission.

As added by P.L.137-2020, SEC.15. Amended by P.L.100-2023, SEC.2; P.L.127-2026, SEC.5.

IC 8-1-31.7-9.1Recalculation of chemical costs and power costs for purposes of adjustment rider Sec. 9.1. (a) This section applies to the recalculation of costs described in section 7(2)(B) and 7(2)(C) of this chapter for purposes of an adjustment rider under section 12 of this chapter.

(b) Chemical costs described in section 7(2)(B) of this chapter may be recalculated as follows:

(1) If:

(A) at least two (2) years have elapsed since the date of the commission's most recent order adjusting the basic rates and charges of an eligible utility; and

(B) the average actual annual cost of chemicals has increased or decreased by at least three percent (3%) over the course of the two (2) year period described in subdivision (2);

the eligible utility may submit for the commission's review supporting documentation of the average actual annual cost of chemicals for the two (2) year period described in subdivision (2), as calculated under subdivision (2), along with documentation of how the average annual cost of chemicals over that period differs from the amount currently being collected for chemicals through the eligible utility's rates. However, if the average actual annual cost of chemicals has not changed or has increased or decreased by less than three percent (3%) over the course of the two (2) year period described in subdivision (2), an eligible utility may not seek an adjustment to the eligible utility's recovery of chemical costs under this section.

(2) If the eligible utility has determined that the average actual annual cost of chemicals has increased or decreased by at least three percent (3%) over the course of the two (2) year period described in this subdivision, the eligible utility shall include in its submission under this subsection a calculation of the average actual annual cost of chemicals for the two (2) year period described in this subdivision, along with a comparison of that cost to the amount currently being collected for chemicals through the eligible utility's rates, as follows:

STEP ONE: Calculate the actual cost of chemicals during the two (2) year period immediately preceding the date of the eligible utility's submission under this subsection by adding together the actual annual cost of chemicals in each year of the two (2) year period.

STEP TWO: Calculate the quotient of the STEP ONE amount divided by two (2). This quotient is the average actual annual cost of chemicals for the two (2) years immediately preceding the eligible utility's submission under this subsection.

STEP THREE: Calculate the difference between:

(i) the STEP TWO result; minus

(ii) the amount currently being collected for chemicals through the eligible utility's rates on an annual basis, as authorized in the commission's most recent base rate order for the eligible utility, and adjusted to reflect the change in volume from the volume level authorized in the commission's most recent base rate order. The authorized chemical costs in the commission's most recent base rate order shall be divided by the number of gallons projected to be sold in the commission's most recent base rate order to impute an original cost of chemicals per gallon of water sold per unit cost. This per unit cost shall be multiplied by the projected number of gallons of water to be sold by the eligible utility over the twelve (12) month period of the adjustment rider under section 12 of this chapter to impute an adjusted cost of chemicals from the most recent base rate case.

(3) If the STEP THREE result under subdivision (2) is a positive number, the amount of the STEP THREE result shall be included in the adjustment rider under section 12 of this chapter as an expense in calculating an adjustment to the rider.

(4) If the STEP THREE result under subdivision (2) is a negative number, the amount of the STEP THREE result shall be included in the adjustment rider under section 12 of this chapter as a credit in calculating an adjustment to the rider.

(c) Power costs described in section 7(2)(C) of this chapter may be recalculated as follows:

(1) If:

(A) at least two (2) years have elapsed since the date of the commission's most recent order adjusting the basic rates and charges of an eligible utility; and

(B) the average actual annual cost of power has increased or decreased by at least three percent (3%) over the course of the two (2) year period described in subdivision (2);

the eligible utility may submit for the commission's review supporting documentation of the average actual annual cost of power for the two (2) year period described in subdivision (2), as calculated under subdivision (2), along with documentation of how the average annual cost of power over that period differs from the amount currently being collected for power through the eligible utility's rates. However, if the average actual annual cost of power has not changed or has increased or decreased by less than three percent (3%) over the course of the two (2) year period described in subdivision (2), an eligible utility may not seek an adjustment to the eligible utility's recovery of power costs under this section.

(2) If the eligible utility has determined that the average actual annual cost of power has increased or decreased by at least three percent (3%) over the course of the two (2) year period described in this subdivision, the eligible utility shall include in its submission under this subsection a calculation of the average actual annual cost of power for the two (2) year period described in this subdivision, along with a comparison of that cost to the amount currently being collected for power through the eligible utility's rates, as follows:

STEP ONE: Calculate the actual cost of power during the two (2) year period immediately preceding the date of the eligible utility's submission under this subsection by adding together the actual annual cost of power in each year of the two (2) year period.

STEP TWO: Calculate the quotient of the STEP ONE amount divided by two (2). This quotient is the average actual annual cost of power for the two (2) years immediately preceding the eligible utility's submission under this subsection.

STEP THREE: Calculate the difference between:

(i) the STEP TWO result; minus

(ii) the amount currently being collected for power through the eligible utility's rates on an annual basis, as authorized in the commission's most recent base rate order for the eligible utility, and adjusted to reflect the change in volume from the volume level authorized in the commission's most recent base rate order. The authorized power costs in the commission's most recent base rate order shall be divided by the number of gallons projected to be sold in the commission's most recent base rate order to impute an original cost of power per gallon of water sold per unit cost. This per unit cost shall be multiplied by the projected number of gallons of water to be sold by the eligible utility over the twelve (12) month period of the adjustment rider under section 12 of this chapter to impute an adjusted cost of power from the most recent base rate case.

(3) If the STEP THREE result under subdivision (2) is a positive number, the amount of the STEP THREE result shall be included in the adjustment rider under section 12 of this chapter as an expense in calculating an adjustment to the rider.

(4) If the STEP THREE result under subdivision (2) is a negative number, the amount of the STEP THREE result shall be included in the adjustment rider under section 12 of this chapter as a credit in calculating an adjustment to the rider.

As added by P.L.127-2026, SEC.6.

IC 8-1-31.7-9.2Commission order approving adjustment rider for recovery of chemical costs or power costs; petition for change in adjustment amount; hearing and order on petition Sec. 9.2. (a) This section applies to an eligible utility for which the commission has issued an order under section 12 of this chapter to approve an adjustment rider for the recovery of costs described in section 7(2)(B) or 7(2)(C) of this chapter, as calculated under section 9.1 of this chapter.

(b) An eligible utility to which this section applies shall file a petition for a change in its adjustment amount:

(1) not later than thirty (30) days after the end of each twelve (12) month period after the date on which the commission issued the order under section 12 of this chapter approving the adjustment rider; and

(2) until the commission issues an order in the eligible utility's next general rate case.

(c) Upon filing a petition with the commission under subsection (b), an eligible utility shall serve a copy of the petition on the office of utility consumer counselor.

(d) The commission shall hold a hearing and issue an order on the petition not later than sixty (60) days after the date the petition is filed.

As added by P.L.127-2026, SEC.7.

IC 8-1-31.7-10Plan for improvements related to compliance with certain requirements; factors for commission's consideration Sec. 10. If the plan is for a service enhancement improvement described in section 7(1)(A) of this chapter, the commission shall approve the plan if the commission finds that the public convenience and necessity require the proposed service enhancement improvement to allow the eligible utility to comply directly or indirectly with one (1) or more requirements. The commission shall examine the following:

(1) The following factors, which must be set forth in the eligible utility's case in chief filed in accordance with section 9 of this chapter:

(A) A description of the requirements, including any consent decrees related to the requirements, that the eligible utility seeks to comply with through the proposed service enhancement improvement.

(B) A description of the projected service enhancement improvement costs associated with the proposed service enhancement improvement.

(C) A description of how the proposed service enhancement improvement allows the eligible utility to comply with the requirements described by the eligible utility under clause (A).

(D) Alternative plans for compliance.

(2) Any other factors the commission considers relevant.

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-11Plan for improvements related to compliance with regulation imposed by local government Sec. 11. If the plan is for a service enhancement improvement described in section 7(1)(A) of this chapter related to a requirement described in section 6(4) of this chapter, the eligible utility shall provide a copy of the unit or municipal corporation ordinance or other determination setting forth the requirement and shall provide the eligible utility's estimated cost to comply with the requirement. The commission shall review the reasonableness of the requirement under IC 8-1-2-101(a). Unless the commission finds the requirement to be unreasonable, the commission shall approve the plan for the service enhancement improvement. The unit or municipal corporation that has adopted the requirement shall be provided notice of the proceedings.

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-12Eligible utility's petition for adjustment rider; recovery of costs; hearing; order; costs for replacement of plant or equipment; recovery of chemical costs or power costs not subject to deferral Sec. 12. (a) If the commission approves an eligible utility's plan under section 9 of this chapter, or if commission approval of the plan is otherwise not required, the eligible utility may file a petition to establish or adjust an adjustment rider to its rate schedules under this section so as to allow timely recovery of the eligible utility's service enhancement improvement costs. The following shall apply:

(1) The adjustment rider shall be calculated as a fixed charge based upon equivalent meter size.

(2) Publication of notice of the filing is not required.

For purposes of this section, the timely recovery of costs for a municipally owned utility or a not-for-profit utility shall be in a manner consistent with IC 8-1-31-8(a)(3).

(b) Except as provided in subsection (i), the adjustment rider shall provide for the timely recovery of eighty percent (80%) of the service enhancement improvement costs. The remaining twenty percent (20%) of the service enhancement improvement costs shall be deferred under section 9(f)(2) of this chapter.

(c) The commission shall conduct a hearing.

(d) The office of the utility consumer counselor may:

(1) examine information of the eligible utility to confirm:

(A) that the eligible additions are in accordance with sections 2 and 8 of this chapter, as applicable; and

(B) the proper calculation of the adjustment amount proposed under this section or section 9.1 of this chapter, as applicable; and

(2) submit a report to the commission not later than thirty (30) days after the petition is filed.

(e) Except as provided in subsection (h), the commission shall hold the hearing and issue its order not later than sixty (60) days after the petition is filed.

(f) Except as provided in subsection (h), the commission shall enter an order approving a petition filed under this section to the extent the commission finds that the petition complies with the requirements of this chapter.

(g) A petition filed under this section may combine one (1) or more of the following:

(1) Service enhancement improvement costs associated with one (1) or more plans approved under section 9 of this chapter.

(2) Service enhancement improvement costs for which approval of a plan is not required under this chapter.

(h) If a petition filed under this section seeks recovery of service enhancement improvement costs associated with eligible additions made in association with service enhancement improvements described in section 7(2)(A) of this chapter:

(1) the commission shall create a sub-docket to consider the service enhancement improvement costs if the petition combines the service enhancement improvement costs with service enhancement improvement costs associated with approved plans under section 7(1)(A) or 7(1)(B) of this chapter;

(2) to approve recovery of the service enhancement improvement costs associated with service enhancement improvements described in section 7(2)(A) of this chapter, the commission must find that the service enhancement improvements described in section 7(2)(A) of this chapter are reasonable and necessary; and

(3) the time period for issuance of an order under subsection (e) is extended to one hundred twenty (120) days with respect to the service enhancement improvement costs associated with service enhancement improvements described in section 7(2)(A) of this chapter.

(i) An adjustment rider under this section for the recovery of costs described in section 7(2)(B) or 7(2)(C) of this chapter shall provide for the timely recovery of those costs in full and without the deferral otherwise required under subsection (b).

As added by P.L.137-2020, SEC.15. Amended by P.L.127-2026, SEC.8.

IC 8-1-31.7-13Pretax return for public utility; factors for commission's consideration Sec. 13. In determining an appropriate pretax return for a public utility, the commission may consider the following factors:

(1) The current state and federal income tax rates.

(2) The eligible utility's actual regulatory capital structure.

(3) The actual cost rates for the eligible utility's long term debt and preferred stock.

(4) The eligible utility's cost of common equity.

(5) Other components that the commission considers appropriate.

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-14Cost of common equity for public utility Sec. 14. (a) Except as provided in subsection (b), the cost of common equity to be used in the calculation of the pretax return under section 13 of this chapter shall be the most recent determination by the commission in a general rate proceeding of the eligible utility.

(b) If the commission finds that the most recent determination described in subsection (a) is no longer representative of current conditions, the commission may, after notice and hearing, make a new determination of the common equity cost rate for use in determining the charge. The most recent prior determination shall be used pending any redetermination under this subsection.

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-15Recovery of costs for municipally owned utility; factors for commission's consideration Sec. 15. In determining the amount of allowable recovery of service enhancement improvement costs for an eligible utility that is a municipally owned utility, the commission may consider the following factors:

(1) Extensions and replacements, to the extent that the extension and replacements are not provided for through depreciation, in the manner provided for in IC 8-1.5-3-8.

(2) Debt service on funds borrowed to pay for eligible service enhancement improvement.

(3) Depreciation expenses on eligible service enhancement improvements based on the same rate or rates of depreciation approved by the commission for the calculation of depreciation in the eligible utility's most recent rate case.

(4) Other components that the commission considers appropriate.

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-16Recovery of costs for not-for-profit utility; factors for commission's consideration Sec. 16. In determining the amount of allowable recovery of service enhancement improvement costs for a not-for-profit utility, the commission may consider the following factors:

(1) Extensions and replacements, in the manner provided for in IC 8-1-2-125.

(2) Debt service on funds borrowed to pay for eligible service enhancement improvement.

(3) Other components that the commission considers appropriate.

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-17Adjustment amount calculation and reconciliation procedures Sec. 17. An adjustment amount proposed under section 12 of this chapter may be calculated based on a reasonable estimate of equivalent meters in the period in which the charge will be in effect. At the end of each twelve (12) month period following the date on which the commission initially approves an adjustment amount for an eligible utility following the eligible utility's most recent general rate case, the eligible utility, using procedures approved by the commission, shall reconcile the difference between revenues under the adjustment rider and service enhancement improvement costs during that period and recover or refund the difference, as appropriate, through additional adjustments to the adjustment rider.

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-18Petition to change adjustment rider Sec. 18. Except as provided in section 9.2 of this chapter, an eligible utility may, but is not required to, file a petition for a change in its initial adjustment amount not more than one (1) time in every twelve (12) months. Section 12 of this chapter applies to a petition to change an adjustment rider.

As added by P.L.137-2020, SEC.15. Amended by P.L.127-2026, SEC.9.

IC 8-1-31.7-19Resetting of adjustment rider after increase in basic rates and charges Sec. 19. An eligible utility's adjustment rider approved under sections 12 and 18 of this chapter shall be reset to zero (0) upon approval of new basic rates and charges for the eligible utility by the commission in a general rate case in which the eligible service additions are included in the eligible utility's rate base.

As added by P.L.137-2020, SEC.15.

IC 8-1-31.7-20Commission to adopt rules Sec. 20. The commission shall adopt rules under IC 4-22-2 to implement this chapter.

As added by P.L.137-2020, SEC.15.

IC 8-1-32Chapter 32. Water Wells

8-1-32-1Applicability of chapter 8-1-32-2Applicability of definitions 8-1-32-3"Health agency" defined 8-1-32-4"Project" defined 8-1-32-5"Subject area" defined 8-1-32-6Contaminants in private water wells; estimate of cost of extending water utility service 8-1-32-7Public utility ordered to extend water utility service; rate adjustment 8-1-32-8Rate adjustment in amended rate schedule 8-1-32-9Rate adjustment not general increase in basic rates and charges; subject to further adjustment 8-1-32-10Property owners required to abandon and plug wells 8-1-32-11Maintenance responsibilities 8-1-32-12Commission's jurisdiction not reduced or superseded