Sec. 11. (a) If the commission issues an order approving an environmental compliance plan submitted by a public utility under this chapter, the commission shall, absent fraud, concealment, gross mismanagement, or inadequate quality control, allow the public utility to do the following:

(1) If a public utility is allowed by law to earn a return on the public utility’s investment, the public utility may add to the fair value of the public utility’s property the fair value of a completed capital project, or part of a capital project, that:

Terms Used In Indiana Code 8-1-28-11

  • commission: refers to the Indiana utility regulatory commission. See Indiana Code 8-1-1-1
  • environmental compliance plan: means a plan developed by a public utility to comply in whole or in part with the requirements of the Safe Drinking Water Act or the Clean Water Act. See Indiana Code 8-1-28-2
  • Fraud: Intentional deception resulting in injury to another.
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
  • public utility: means a public utility, a municipally owned utility, or a cooperatively owned utility. See Indiana Code 8-1-28-3
(A) is constructed and consists of:

(i) new systems, equipment, or facilities; or

(ii) modifications to existing systems, equipment, or facilities; and

(B) is part of the environmental compliance plan approved by the commission;

up to the amount approved by the commission under section 7(2) or 12 of this chapter, whichever is applicable.

(2) The public utility may recover the costs and expense incurred by the public utility in the development and implementation of the approved environmental compliance plan, up to the amount approved under section 7(2) or 12 of this chapter, whichever is applicable.

     (b) The public utility may not recover costs in excess of the cost estimate approved by the commission under section 7(2) or 12 of this chapter, whichever is applicable, unless the commission finds that the additional costs were necessary and prudent.

As added by P.L.76-1991, SEC.2.