Note: This version of section effective 4-20-2023. See also preceding version of this section, effective until 4-20-2023.

     Sec. 19. (a) Every public utility shall carry a separate, proper and adequate depreciation account whenever the commission, after investigation, shall determine that such depreciation account reasonably can be required.

Terms Used In Indiana Code 8-1-2-19 v2

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Commission: as used in this chapter , means the commission created by IC 8-1-1-2. See Indiana Code 8-1-2-1
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
  • public utility: as used in this chapter , means every corporation, company, partnership, limited liability company, individual, association of individuals, their lessees, trustees, or receivers appointed by a court, that may own, operate, manage, or control any plant or equipment within the state for the:

    Indiana Code 8-1-2-1

  • Utility: as used in this chapter , means every plant or equipment within the state used for:

    Indiana Code 8-1-2-1

     (b) The commission, from time to time, shall ascertain and determine the proper and adequate rates of depreciation of the several classes of property of each public utility. Depreciation rates under this subsection shall be calculated to recover a reasonable estimate of the future cost of removing retired assets of the public utility.

     (c) A public utility’s rates, tolls and charges shall be such as will provide the amounts required over and above the reasonable and necessary operating expenses, to maintain such property in an operating state of efficiency corresponding to the progress of the industry. In a proceeding in which the costs of a capital asset are being recognized for ratemaking purposes, a public utility may account for any asset retirement obligations and recover, through rates charged to customers, reasonably and prudently incurred costs associated with asset retirement obligations, to the extent the specific asset retirement obligation costs are incremental and have not otherwise been included in depreciation rates. Each public utility shall conform its depreciation accounts to the rates so ascertained and determined by the commission.

     (d) Subject to IC 8-1-8.5-2.1(d), the commission shall make changes in a public utility’s rates of depreciation, from time to time, as the commission finds necessary, including as necessary to reflect changes in:

(1) the public utility’s estimated asset retirement costs, including all reasonable and prudent costs of removing retired assets; and

(2) the estimated retirement dates of assets of the public utility.

Formerly: Acts 1913, c.76, s.22; Acts 1925, c.64, s.1. As amended by P.L.2-2023, SEC.1; P.L.81-2023, SEC.2; P.L.170-2023, SEC.4.

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