§ 8-1-27-19 — Ongoing review of cost and implementation of plan; progress report; recovery of costs; approval or disapproval by commission; effect

(a) In addition to the review of the continued
appropriateness of an environmental compliance plan under section 18
of this chapter, the commission shall, at the request of a public utility,
conduct an ongoing review of the cost and implementation of the
public utility's approved environmental compliance plan. The public
utility that has filed a compliance plan under this chapter shall submit
to the commission:
(1) each year; or
(2) at other times the commission and the public utility agree on;
a progress report that includes any information the commission may
require.
(b) If the commission approves the cost and implementation of the
part of the environmental compliance plan under review, then, absent
fraud, concealment, or gross mismanagement, the approval forecloses
subsequent challenges to:
(1) the recovery in rates of those costs; and
(2) if the public utility is allowed by law to earn a return on the
public utility's investment, the addition to fair value of the public
utility's property of 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
implementation approved by the commission;
up to the amount approved under section 8(2) or 13 of this
chapter, whichever is applicable. 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) If the commission does not issue an order disapproving all or
part of the implementation of the part of the environmental compliance
plan under review within six (6) months of the commencement of the
commission's review, the commission shall be considered to have
approved all of the implementation of that part of the environmental
compliance plan, unless the commission issues an order extending the
time for such review.
(d) Except as provided in subsection (e), costs otherwise
recoverable by a public utility under subsection (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 a return
on, the public utility's investment in a completed capital project, or
portion of a capital project, such costs shall be so recovered only if the
capital project, or portion of the capital project, is found by the
commission to be used and useful.
(e) Costs otherwise recoverable by a public utility under subsection
(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.
(f) This section applies instead of sections 12 and 16 of this chapter
for a public utility that elects the review described in this section.
(g) If the commission disapproves all or part of the implementation
of the part of the environmental compliance plan under review:
(1) the commission may, consistent with sections 8 and 10 of this
chapter, issue an order withdrawing the commission's approval of
all or part of the environmental compliance plan; and
(2) the public utility may voluntarily submit a modified
environmental compliance plan to the commission for the
commission's review and approval under this chapter.
If the commission issues an order approving all or part of the modified
environmental compliance plan, the environmental compliance plan
constitutes the public utility's approved environmental compliance plan
for purposes of this chapter.

Legislative History

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