§ 8-1-28-11 — Recovery of costs by public utility for capital projects or implemented plan

(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 by the commission under section 7(2)
or 12 of this chapter, whichever is applicable.
(2) The public utility may recover the costs and expense incurred
by the public utility in the development and implementation of the
approved environmental compliance plan, up to the amount
approved under section 7(2) or 12 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 7(2) or 12 of this
chapter, whichever is applicable, unless the commission finds that the
additional costs were necessary and prudent.

Legislative History

As added by P.L.76-1991, SEC.2.