Indiana § 8-1-31-5.5 - "Infrastructure improvement costs"

§ 8-1-31-5.5. "Infrastructure improvement costs"

Sec. 5.5. As used in this chapter, "infrastructure improvement costs" means the following:

(1) For a public utility:

(A) depreciation expenses, including deferred depreciation expense beginning with the in service date of eligible infrastructure improvements;

(B) property taxes to be paid by the public utility based upon the first assessment date following placement in service;

(C) pretax return; and

(D) post in service carrying costs, compounded monthly and based on the overall weighted cost of capital most recently approved by the commission;

associated with eligible infrastructure improvements.

(2) The following for a municipally owned utility:

(A) Depreciation expenses.

(B) Adequate money for making extensions and replacements of eligible infrastructure improvements to the extent not provided for through depreciation, as provided in IC 8-1.5-3-8(c).

(C) Debt service on funds borrowed to pay for eligible infrastructure improvements.

(D) To the extent applicable, property taxes to be paid by the municipally owned utility based upon the first assessment date following placement in service of eligible infrastructure improvements.

(3) The following for a not-for-profit utility:

(A) Debt service on funds borrowed to pay for eligible infrastructure improvements.

(B) Adequate money for making extensions and replacements of eligible infrastructure improvements.

(C) To the extent applicable, property taxes to be paid by the not-for-profit utility based upon the first assessment date following placement in service of eligible infrastructure improvements.

As added by P.L.209-2014, SEC.7. Amended by P.L.212-2015, SEC.4; P.L.61-2022, SEC.5; P.L.24-2025, SEC.4.