Sec. 9. (a) Except as provided in subsection (e), before an eligible utility may seek to recover its service enhancement improvement costs through a periodic rate adjustment under section 12 of this chapter, it must first obtain preapproval from the commission of its plan for the proposed service enhancement improvement or improvements. The eligible utility must file with the commission a petition and a case in chief, including supporting information described in section 10 or 11 of this chapter, as applicable. If the petition includes a request for an allocation of costs under IC 8-1-30.3-6.5, the eligible utility shall provide a copy of:

(1) the petition; and

(2) the eligible utility’s case in chief;

to each intervenor in the eligible utility’s last general rate case.

     (b) After holding a public hearing for which proper notice is given under IC 8-1-1-8, the commission shall preapprove the eligible utility’s plan under this section if the commission makes the required findings under section 10 or 11 of this chapter, as applicable. If the service enhancement improvement is not described in section 7(1)(A) of this chapter, the commission shall preapprove the eligible utility’s plan under this section if the commission makes the required finding under section 7(1)(B)(ii) of this chapter.

     (c) The commission shall issue its final order on the petition not later than two hundred ten (210) days after the filing of the eligible utility’s case in chief.

     (d) An eligible utility may have more than one (1) plan, and an eligible utility may file separate petitions for separate plans.

     (e) An eligible utility is not required to seek preapproval of a plan in order to seek recovery under section 12 of this chapter for eligible additions that are described in section 7(2) of this chapter.

     (f) If the commission approves an eligible utility’s plan under this section, or if approval is otherwise not required, the commission shall approve a rider authorizing timely recovery of the eligible utility’s service enhancement improvement costs under section 12 of this chapter. The following apply to the utility’s timely recovery:

(1) Eighty percent (80%) of the eligible utility’s service enhancement improvement costs shall be recovered by the eligible utility through a periodic rate adjustment mechanism that allows the timely recovery of the approved service enhancement improvement costs.

(2) Twenty percent (20%) of the eligible utility’s service enhancement improvement costs, including depreciation, allowance for funds used during construction, and post in service carrying costs, compounded monthly and based on the overall cost of capital most recently approved by the commission, shall be deferred and recovered by the eligible utility as part of its next general rate case filed by the eligible utility with the commission.

(3) Actual costs that exceed by more than twenty-five percent (25%) the projected costs set forth in the eligible utility’s plan approved under this section require specific justification by the eligible utility and specific approval by the commission before being authorized in the next general rate case filed by the eligible utility with the commission.

As added by P.L.137-2020, SEC.15. Amended by P.L.100-2023, SEC.2.