Indiana § 8-1-2-19 Depreciation account; calculation of depreciation rates; inclusion of
depreciation and asset retirement costs in utility rates

Indiana Statutes

§ 8-1-2-19 — Depreciation account; calculation of depreciation rates; inclusion of depreciation and asset retirement costs in utility rates

Indiana·Art. 1 UTILITIES GENERALLY·Ch. 2 Utility Regulation

(a)Every public utility shall carry a separate, proper and adequate depreciation account whenever the commission, after investigation, shall determine that such depreciation account reasonably can be required.

(b)The commission, from time to time, shall ascertain and determine the proper and adequate rates of depreciation of the several classes of property of each public utility. Depreciation rates under this subsection shall be calculated to recover a reasonable estimate of the future cost of removing retired assets of the public utility.

(c)A public utility's rates, tolls and charges shall be such as will provide the amounts required over and above the reasonable and necessary operating expenses, to maintain such property in an operating state of efficiency corresponding to the progre

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(a) Every public utility shall carry a separate,
proper and adequate depreciation account whenever the commission,
after investigation, shall determine that such depreciation account
reasonably can be required.
(b) The commission, from time to time, shall ascertain and
determine the proper and adequate rates of depreciation of the several
classes of property of each public utility. Depreciation rates under this
subsection shall be calculated to recover a reasonable estimate of the
future cost of removing retired assets of the public utility.
(c) A public utility's rates, tolls and charges shall be such as will
provide the amounts required over and above the reasonable and
necessary operating expenses, to maintain such property in an
operating state of efficiency corresponding to the progress of the
industry. In a proceeding in which the costs of a capital asset are being
recognized for ratemaking purposes, a public utility may account for
any asset retirement obligations and recover, through rates charged to
customers, reasonably and prudently incurred costs associated with
asset retirement obligations, to the extent the specific asset retirement
obligation costs are incremental and have not otherwise been included
in depreciation rates. Each public utility shall conform its depreciation
accounts to the rates so ascertained and determined by the commission.
(d) Subject to IC 8-1-8.5-2.1(d), the commission shall make changes
in a public utility's rates of depreciation, from time to time, as the
commission finds necessary, including as necessary to reflect changes
in:
(1) the public utility's estimated asset retirement costs, including
all reasonable and prudent costs of removing retired assets; and
(2) the estimated retirement dates of assets of the public utility.
Formerly: Acts 1913, c.76, s.22; Acts 1925, c.64, s.1. As
amended by P.L.2-2023, SEC.1; P.L.81-2023, SEC.2; P.L.170-2023,
SEC.4.

Indiana § 8-1-2-19 (Depreciation account; calculation of depreciation rates; inclusion of depreciation and asset retirement costs in utility rates) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.