§ 8-1-2-103 — Rates and charges; discriminatory overcharges and undercharges; offense; free service or special rate exceptions

(a) No public utility, or agent or officer of a
public utility, or officer of any municipality constituting a public utility,
as defined in this chapter, may charge, demand, collect, or receive from
any person a greater or less compensation for any service rendered or
to be rendered, or for any service in connection with any service
rendered or to be rendered, than that prescribed in the published
schedules or tariffs then in force or established as provided in this
chapter, or than it charges, demands, collects, or receives from any
other person for a like and contemporaneous service. A person who
recklessly violates this subsection commits a Class A misdemeanor.
(b) Notwithstanding subsection (a), if a city of less than twenty
thousand (20,000) in population according to the most recent federal
decennial census, constituting a public water utility, and acting as a
public utility prior to May 1, 1913, either as such city, or by any
commercial association, chamber of commerce, or committee with the
consent of such city, entered into any agreement with any person
engaged in manufacturing any articles of commerce to furnish free
water for a certain limited time as an inducement to such person so
engaged in manufacturing to locate the establishment or manufacturing
plant of such person within such city, such city may carry out such
agreement to furnish free water to such person for the period of time
remaining, as stipulated in such contract. This chapter does not prohibit
any public utility from supplying or furnishing free service or service
at special rates to any municipality, or any institution or agency of such
municipality, in cases where the supplying or furnishing of such free
service or service at special rates is stipulated in any provision of the
franchise under which such public utility was operating before May 16,
1919, or, in the event that such franchise shall have been surrendered,
from supplying or furnishing such free service or service at special
rates until such time as the franchise would have expired had it not
been surrendered under this chapter; and it shall be the duty of any
utility operating under any franchise, stipulating for free service or
service at special rates to the municipality, or any institution or agency
of such municipality, to furnish such free service or service at special
rates.
(c) This subsection applies to a public utility that provides water for
public fire protection services in both a county containing a
consolidated city and in portions of counties that are adjacent to the
county containing a consolidated city. This subsection applies
throughout the territory served by the public utility. In the case of a
public utility furnishing water and beginning on January 1, 1994, the
charges for the production, storage, transmission, sale and delivery, or
furnishing of water for public fire protection purposes shall be included
in the basic rates of the customers of the public utility. However, the
construction cost of any fire hydrant installed after December 31, 1993,
at the request of a municipality, township, county, or other
governmental unit shall be paid for by or on behalf of the municipality,
township, county, or other governmental unit. The change in the
recovery of current revenue authorized by this section shall be reflected
in a new schedule of rates to be filed with the commission at least thirty
(30) days before the time the new schedule of rates is to take effect.
The new schedule of rates shall:
(1) eliminate fire protection charges billed directly to
governmental units, other than charges for the construction cost
for new hydrants installed after December 31, 1993; and
(2) increase the rates charged each customer of the utility, based
on equivalent meter size, by an amount equal to:
(A) the revenues lost from the elimination of such fire
protection charges; divided by
(B) the current number of equivalent five-eighths (5/8) inch
meters.
This change in the recovery of public fire protection costs shall not be
considered to be a general increase in basic rates and charges of the
public utility and is not subject to the notice and hearing requirements
applicable to general rate proceedings. The commission shall approve
the new schedule of rates that are to be effective January 1, 1994.
(d) This subsection applies to a public utility or a municipally
owned water utility that is not subject to subsection (c). Except as
provided in subsection (e), in the case of a public utility or municipally
owned water utility furnishing water, if the governing body of any
municipality within the service area of the utility adopts an ordinance
providing that costs shall be recovered under this subsection, the
charges for the production, storage, transmission, sale and delivery, or
furnishing of water for public fire protection purposes shall be included
in the basic rates of all customers of the utility within the municipality.
However, on or after a date specified in the ordinance, the construction
cost of any fire hydrant installed at the request of a municipality,
township, county, or other governmental unit that adopts an ordinance
under this subsection shall be paid for by or on behalf of the
municipality, township, county, or other governmental unit. The change
in the recovery of current revenue authorized by the ordinance shall be
reflected in a new schedule of rates to be filed with the commission at
least thirty (30) days before the time the new schedule of rates is to take
effect. The new schedule of rates shall:
(1) eliminate fire protection charges billed directly to
governmental units, other than charges for the construction cost
for new hydrants installed on and after the date specified in the
ordinance; and
(2) increase the rates charged each customer of the utility, based
on equivalent meter size, by an amount equal to:
(A) the revenues lost from the elimination of such fire
protection charges; divided by
(B) the current number of equivalent five-eighths (5/8) inch
meters.
This change in the recovery of public fire protection costs shall not be
considered to be a general increase in basic rates and charges of the
utility and is not subject to the notice and hearing requirements
applicable to general rate proceedings. The commission shall approve
the new schedule of rates that are to be effective on a date specified in
the ordinance.
(e) This subsection applies to a municipally owned water utility in
a city having a population of more than fifty-three thousand (53,000)
and less than fifty-four thousand (54,000). The city may adopt a plan
to recover costs as described in subsection (d) without passing an
ordinance, if the plan applies only to customers of the utility residing
in a county having a population of more than two hundred fifty
thousand (250,000) and less than three hundred thousand (300,000). If
the city wishes to adopt such a plan, the city shall file a new schedule
of rates with the commission, but is not subject to commission approval
of the rates.
(f) In the case of a change in the method of recovering public fire
protection costs under an ordinance adopted under subsection (d):
(1) on or after July 1, 1997, a customer of the utility located
outside the limits of a municipality whose property is not located
within one thousand (1,000) feet of a fire hydrant (measured from
the hydrant to the nearest point on the property line of the
customer) must be excluded from the increase in rates attributable
to the change and must not be included in the number of
equivalent five-eighths (5/8) inch meters for purposes of
subsection (d)(2)(B); or
(2) before July 1, 1997, the commission may:
(A) in the context of a general rate proceeding initiated by the
utility; or
(B) upon petition of:
(i) the utility;
(ii) the governmental unit that passed the ordinance; or
(iii) an affected customer;
prospectively exclude public fire protection costs from the rates
charged to customers located outside the limits of any
municipality whose property is not located within one thousand
(1,000) feet of a fire hydrant (measured from the hydrant to the
nearest point on the property line of the customer) if the
commission authorizes a simultaneous increase in the rates of the
utility's other customers to the extent necessary to prevent a loss
of revenues to the utility.
An increase in the rates of the utility's other customers under
subdivision (2) may not be construed to be a general increase in basic
rates and charges of the utility and is not subject to the hearing
requirements applicable to general rate proceedings. This subsection
does not prohibit the commission from adopting different methods of
public fire protection cost recovery for unincorporated areas after
notice and hearing within the context of a general rate proceeding or
other appropriate proceeding.
Formerly: Acts 1913, c.76, s.112; Acts 1915, c.137, s.1; Acts
1919, c.168, s.1. As amended by Acts 1977, P.L.2, SEC.37; Acts 1978,
P.L.2, SEC.803; Acts 1981, P.L.44, SEC.6; P.L.93-1993, SEC.1;
P.L.79-1997, SEC.1; P.L.80-1997, SEC.1; P.L.2-1998, SEC.33;
P.L.170-2002, SEC.57; P.L.176-2002, SEC.5; P.L.119-2012, SEC.82;
P.L.136-2018, SEC.52; P.L.104-2022, SEC.58.