§ 8-1-2-10 — Accounting systems; recovery of deferred costs

(a) Every public utility shall keep and render
to the commission, in the manner and form prescribed by the
commission, uniform accounts of all business transacted. In
formulating a system of accounting for any class of public utilities, the
commission shall consider any system of accounting established by any
federal law, commission, or department and any system authorized by
a national association of such utilities.
(b) A public utility, municipally owned utility, or not-for-profit
utility, including any utility owned, operated, or held in trust by a
consolidated city, may defer for consideration by the commission and
for future recovery costs incurred or to be incurred in a regulatory asset
consistent with the accounting rules that concern the recognition of
regulatory assets and that are in effect at the time the deferral decision
is made by the utility, including any of the following costs, to the extent
those specific costs are incremental and are not otherwise already
included for recovery in the utility's rates:
(1) Financing costs.
(2) Depreciation expenses.
(3) Asset retirement obligations.
(4) Operation and maintenance costs.
(5) Capital costs.
(6) Tax costs.
(7) Tax credits.
(8) Incurred costs that are directly related to the preparation and
conduct of a regulatory proceeding.
(c) Commission preapproval for the creation of a regulatory asset is
not required.
(d) Notwithstanding section 68 of this chapter, a utility described in
subsection (b) may recover through the utility's rates over a reasonable
period, as determined by the commission, costs that are:
(1) deferred under this section; and
(2) found to be reasonable and prudent by the commission.
Formerly: Acts 1913, c.76, s.13. As amended by P.L.81-2023,
SEC.1.