§ 8-1-27-12 — Recovery of costs by public utility for capital projects or implemented plan

Indiana § 8-1-27-12

• Jurisdiction: Indiana
• Art. 1: UTILITIES GENERALLY
• Ch. 27: Environmental Compliance Plans

Text

(a) If the commission issues an order
approving an environmental compliance plan submitted by a public
utility under this chapter, the commission shall, absent fraud,
concealment, gross mismanagement, or inadequate quality control,
allow the public utility to do the following:
(1) If a public utility is allowed by law to earn a return on the
public utility's investment, the public utility may add to the fair
value of the public utility's property the fair value of a completed
capital project, or part of a capital project, that:
(A) is constructed and consists of:
(i) new systems, equipment, or facilities; or
(ii) modifications to existing systems, equipment, or
facilities; and
(B) is part of the environmental compliance plan approved by
the commission;
up to the amount approved under section 8(2) or 13 of this
chapter, whichever is applicable.
(2) The public utility may recover the costs incurred by the public
utility in the development and implementation of the approved
environmental compliance plan up to the amount approved under
section 8(2) or 13 of this chapter, whichever is applicable.
(b) The public utility may not recover costs in excess of the cost
estimate approved by the commission under section 8(2) or 13 of this
chapter, whichever is applicable, unless the commission finds that the
additional costs were necessary and prudent.
(c) Except as provided in subsection (d), costs otherwise
recoverable by a public utility under subsections (a) and (b) shall be
recovered only through a general rate proceeding for the public utility
and, to the extent such costs provide the public utility with a return of,
or return on, the public utility's investment in a completed capital
project, or a part of a capital project, such costs shall be so recovered
only if the capital project, or part of the capital project, is found by the
commission to be used and useful.
(d) Costs otherwise recoverable by a public utility under subsections
(a) and (b) that also qualify for recovery under IC 8-1-2-6.6 shall be
recovered by the public utility when and as provided under IC 8-1-2-6.6.
(e) This section does not apply if the public utility elects the review
described in section 19 of this chapter.

Legislative History

As added by P.L.76-1991, SEC.1.