Current through P.L. 171-2024
Section 8-1-30.3-6.5 - Water and wastewater utility allocation of wastewater improvement costs to water customers(a) This section applies to a utility company that is an eligible utility under IC 8-1-31.7-3 and that provides both water and wastewater service in one (1) or more areas in which the utility company has acquired wastewater utility property in an acquisition that was eligible for approval, or was approved, under: (b) A utility company described in subsection (a) may, in a petition to the commission for approval of a plan for service enhancement improvements to the utility company's wastewater utility property under IC 8-1-31.7, propose to allocate a portion of eligible costs of the utility company's wastewater utility property to the utility company's water customers.(c) If a utility company makes a proposal under subsection (b), the utility company shall submit the following as part of the utility company's case in chief: (1) The estimated adjustment rider that would result if there were no allocation of eligible costs to the utility company's water customers.(2) A calculation of two percent (2%) of the utility company's authorized total revenues for purposes of subsection (f)(1).(3) Information regarding the availability of grants or low interest loans and whether the utility company considered using available grants or low interest loans to help the utility company finance or reduce the cost of the service enhancement improvements for the utility company and the utility company's customers.(4) Documentation demonstrating that the utility company has developed an asset management program, as defined in guidelines adopted by the Indiana finance authority under IC 5-1.2.(5) An estimate of the life cycle management costs, as defined in guidelines adopted by the Indiana finance authority under IC 5-1.2, that will be incurred over the useful life of the assets to be financed by the service enhancement improvements for which approval is sought under IC 8-1-31.7.(6) Information as to whether the wastewater utility property acquired by the utility company was subject, before the acquisition, to an enforcement order (as defined in IC 8-1-1.9-5).(d) The commission may approve a utility company's proposal under subsection (b) to the extent the commission finds that:(1) subject to subsection (e), because of reasonable and necessary improvements that are proposed for the wastewater utility property, the resulting rates charged to wastewater customers would reach levels necessitating the provision of financial assistance to the customers in accordance with IC 8-1-2-0.5 and in a manner consistent with IC 8-1-2-4;(2) the total rates charged by the utility company for water service will not increase unreasonably as a result of the allocation;(3) the utility company included in its proposal information regarding the availability of grants or low interest loans and whether the utility company considered using available grants or low interest loans to help the utility company finance or reduce the cost of the service enhancement improvements for the utility company and the utility company's customers, as described in subsection (c)(3); and(4) the utility company has developed an asset management program, as defined in guidelines adopted by the Indiana finance authority under IC 5-1.2, as described in subsection (c)(4).(e) The commission may consider available reasonable measures that could be taken to reduce the cost of the service enhancement improvements described in subsection (d)(1).(f) For purposes of subsection (d)(2): (1) an increase in the total rates charged for water service is not unreasonable to the extent the allocation under subsection (b) results in an increase in authorized total revenues of two percent (2%) or less; and(2) the commission shall use the utility company's most recently authorized total revenue, inclusive of adjustments in accordance with adjustable rate mechanisms approved by the commission, for purposes of making the determination under subdivision (1).(g) If the commission approves a utility company's proposal under subsection (d): (1) the utility company shall include a notice on or with water customer monthly bills specifying the amount of the adjustment rider under IC 8-1-31.7 approved by the commission that recovers necessary wastewater utility improvements;(2) the utility company shall, in subsequent general rate cases, submit a cost of service study as part of the utility company's case in chief; and(3) the commission shall:(A) evaluate the allocation of eligible costs of the utility's wastewater utility property to the utility company's water customers in those subsequent general rate cases described in subdivision (2); and(B) order, to the extent the commission finds necessary, any changes to the utility's rates to ensure just and reasonable rates.(h) In the commission's annual report under IC 8-1-1-14 the commission shall include a description of any activity under this section in the fiscal year ending June 30 of the year in which the report is due.Added by P.L. 100-2023,SEC. 1, eff. 5/1/2023.