Indiana Code 8-1-2-4.1. Public water or wastewater utilities; changes in federal or state income tax rate; petition to commission for surcharge
(b) Except as provided in subsection (h), not later than sixty (60) days after the effective date of a change in the applicable federal or state income tax rate as a result of new legislation, a water or wastewater utility shall petition the commission for a water or wastewater utility surcharge that adjusts the water or wastewater utility’s rates and charges to provide recovery for the change in the federal or state income tax rate, independent of any other matters related to the water or wastewater utility’s revenue requirement. A surcharge approved under this section shall operate on a prospective basis.
Terms Used In Indiana Code 8-1-2-4.1
- Commission: as used in this chapter , means the commission created by IC 8-1-1-2. See Indiana Code 8-1-2-1
- 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
(1) applies to each rate or charge in effect at the time of the petition;
(2) shall be calculated to reflect the difference between:
(A) the amount of federal or state income taxes that each existing rate or charge was designed to recover based on the income tax rate in effect at the time the rate or charge was approved; and
(B) the amount of federal or state income taxes that would have been embedded in the given rate or charge had the new income tax rate resulting from the new legislation been in effect at the time of approval; and
(3) shall not include normalization of a water or wastewater utility’s accumulated deferred income taxes. However, the commission may address the issues described in this subdivision in a sub-docket created by the commission.
(d) The commission shall approve a surcharge under this section if the commission finds that:
(1) the surcharge has been calculated correctly under subsection (c); and
(2) the water or wastewater utility’s proposal is just and reasonable.
(e) Beginning on the effective date of the new legislation, and pending approval of a petition filed under this section, a water or wastewater utility is authorized to use regulatory accounting for all calculated differences described in subsection (c)(2).
(f) This section shall not be construed to limit the commission’s authority to:
(1) initiate proceedings; or
(2) take actions;
to ensure just and reasonable rates in connection with any new legislation.
(g) A petition filed under this section is not considered a petition for a general increase in rates and charges.
(h) A water or wastewater utility that serves fewer than eight thousand (8,000) customers may, but is not required to, file a petition under subsection (b).
As added by P.L.120-2021, SEC.2.
Indiana Code 8-1-2.4-1. Development of alternate energy production facilities; policy
As added by Acts 1982, P.L.72, SEC.1.