§ 8-1-2-23.5 — Public utility may seek approval of plan to develop future source of water supply; treatment of cost for ratemaking purposes

Indiana § 8-1-2-23.5

• Jurisdiction: Indiana
• Art. 1: UTILITIES GENERALLY
• Ch. 2: Utility Regulation

Text

5. (a) A public utility that provides water
utility service may file a petition with the commission to seek approval
of a plan to develop a future source of water supply. Any plan
submitted must include a completion date by which the public utility
will place the future source of water supply into service. The
completion date may not be later than fifteen (15) years after the date
on which the plan is submitted. The public utility's plan must include:
(1) the public utility's timetable for placement in service of the
future source of supply;
(2) the cost of the source of supply;
(3) the need for a new source of supply within the public utility's
timetable;
(4) the availability of alternatives to the proposed source of
supply; and
(5) the need to secure property rights to preserve and protect the
planned future source of supply.
The commission shall approve the public utility's plan if the
commission finds that the plan is reasonable and prudent for the
provision of safe and reliable service.
(b) In general rate cases, following approval of a public utility's plan
under this section, the commission shall for ratemaking purposes add
to the value of the public utility's property under section 6 of this
chapter the public utility's actual cost not to exceed the cost presented
to the commission under subsection (a) as expenditures incurred for
land, studies, development costs, and construction in developing a
future source of water supply even though the source of supply is not
yet used and useful in the provision of service. If the public utility's
actual cost exceeds the cost presented to the commission under
subsection (a), the additional costs shall be included once the source of
water supply is in service if the commission finds that the additional
costs were prudently incurred.
(c) If a public utility has an approved plan under this section and the
public utility has not placed the source of water supply into service
before the date set forth to the commission in the public utility's
timetable under subsection (a), the following apply:
(1) Subsection (b) does not apply, unless the public utility obtains
the commission's approval for amendment of the public utility's
plan to extend the timetable. The commission shall consider the
elements listed in subsection (a) in determining whether to
approve the amendment of the plan.
(2) The commission shall establish a refund procedure to restore
to ratepayers all payments that the public utility collected under
subsection (b), with interest, and shall remove the value added to
the public utility's property under subsection (b), unless an
extension is approved under subdivision (1).

Legislative History

As added by P.L.91-2017, SEC.3.