Indiana Code 8-1-2-23.5. Public utility may seek approval of plan to develop future source of water supply; treatment of cost for ratemaking purposes
(1) the public utility’s timetable for placement in service of the future source of supply;
Terms Used In Indiana Code 8-1-2-23.5
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Commission: as used in this chapter , means the commission created by IC 8-1-1-2. See Indiana Code 8-1-2-1
- 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
- Rate: as used in this chapter , means every individual or joint rate, fare, toll, charge, rental, or other compensation of any utility or any two (2) or more such individual or joint rates, fares, tolls, charges, rentals, or other compensation of any utility or any schedule or tariff thereof, but nothing in this subsection shall give the commission any control, jurisdiction, or authority over the rate charged by a municipally owned utility except as in this chapter expressly provided. See 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
(3) the need for a new source of supply within the public utility’s timetable;
(4) the availability of alternatives to the proposed source of supply; and
(5) the need to secure property rights to preserve and protect the planned future source of supply.
The commission shall approve the public utility’s plan if the commission finds that the plan is reasonable and prudent for the provision of safe and reliable service.
(b) In general rate cases, following approval of a public utility’s plan under this section, the commission shall for ratemaking purposes add to the value of the public utility’s property under section 6 of this chapter the public utility’s actual cost not to exceed the cost presented to the commission under subsection (a) as expenditures incurred for land, studies, development costs, and construction in developing a future source of water supply even though the source of supply is not yet used and useful in the provision of service. If the public utility’s actual cost exceeds the cost presented to the commission under subsection (a), the additional costs shall be included once the source of water supply is in service if the commission finds that the additional costs were prudently incurred.
(c) If a public utility has an approved plan under this section and the public utility has not placed the source of water supply into service before the date set forth to the commission in the public utility’s timetable under subsection (a), the following apply:
(1) Subsection (b) does not apply, unless the public utility obtains the commission’s approval for amendment of the public utility’s plan to extend the timetable. The commission shall consider the elements listed in subsection (a) in determining whether to approve the amendment of the plan.
(2) The commission shall establish a refund procedure to restore to ratepayers all payments that the public utility collected under subsection (b), with interest, and shall remove the value added to the public utility’s property under subsection (b), unless an extension is approved under subdivision (1).
As added by P.L.91-2017, SEC.3.