This text of Indiana § 8-1-30.9-9 (Water utility's recovery of costs incurred; inclusion in rate base or
revenue requirement; completed construction; cancellation of project;
construction subject to subsequent review; limitation on recovery of
costs exceeding estimate) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Absent fraud, concealment, or gross
mismanagement, a water utility shall recover through rates the actual
costs the water utility has incurred in reliance on a certificate issued
under this chapter as follows:
(1)If construction of a long haul water pipeline has been subject
to ongoing review under section 8(a) of this chapter and the
commission finds the construction of the long haul water pipeline
has been completed, the costs of construction approved by the
commission during the ongoing review shall be included, without
further commission review, in:
(A)the water utility's rate base, in the case of a public utility; or
(B)the water utility's revenue requirement for extensions and
replacements expense, depreciation expense, or debt service
expense, as applicable, in the case of a:
Free access — add to your briefcase to read the full text and ask questions with AI
Absent fraud, concealment, or gross
mismanagement, a water utility shall recover through rates the actual
costs the water utility has incurred in reliance on a certificate issued
under this chapter as follows:
(1) If construction of a long haul water pipeline has been subject
to ongoing review under section 8(a) of this chapter and the
commission finds the construction of the long haul water pipeline
has been completed, the costs of construction approved by the
commission during the ongoing review shall be included, without
further commission review, in:
(A) the water utility's rate base, in the case of a public utility; or
(B) the water utility's revenue requirement for extensions and
replacements expense, depreciation expense, or debt service
expense, as applicable, in the case of a:
(i) municipally owned utility;
(ii) not-for-profit utility;
(iii) conservancy district; or
(iv) regional water district.
(2) If construction of a long haul water pipeline is subject to
subsequent review under section 8(b) of this chapter and the
commission finds the construction of the long haul water pipeline
to be completed, the costs of construction that do not exceed the
estimate under section 7(e)(1) of this chapter, and that are not
shown to result from inadequate quality controls, shall be
included in:
(A) the water utility's rate base, in the case of a public utility; or
(B) the water utility's revenue requirement for extensions and
replacements expense, depreciation expense, or debt service
expense, as applicable, in the case of a:
(i) municipally owned utility;
(ii) not-for-profit utility;
(iii) conservancy district; or
(iv) regional water district.
However, inclusion of costs in excess of the estimate under
section 7(e)(1) of this chapter in the water utility's rate base or
revenue requirement is not permitted unless shown by the water
utility to be necessary and prudent in the construction of the long
haul water pipeline.
(3) If a long haul water pipeline has been canceled as a result of:
(A) the modification or revocation of the certificate under this
chapter; or
(B) local permitting or other issues beyond the water utility's
control;
and the long haul water pipeline's construction has been subject
to ongoing review under section 8(a) of this chapter (including
reviews after cancellation), the costs of construction approved by
the commission during the review shall be recovered by the water
utility by inclusion in rates and amortization over a reasonable
time to be determined by the commission. A water utility that is
a public utility shall be permitted to earn a return, computed using
the water utility's authorized rate of return, on the unamortized
balance.
(4) If a long haul water pipeline has been canceled as a result of:
(A) the modification or revocation of the certificate under this
chapter; or
(B) local permitting or other issues beyond the water utility's
control;
and the long haul water pipeline's construction is subject to
subsequent review under section 8(b) of this chapter, the costs of
construction incurred before cancellation that were included in
the estimate under section 7(e)(1) of this chapter and that have
not been shown to result from inadequate quality controls shall be
recovered by the water utility by inclusion in rates and
amortization over a reasonable time to be determined by the
commission. A water utility that is a public utility shall be
permitted to earn a return, computed using the water utility's
authorized rate of return, on the unamortized balance. However,
costs that were not included in the estimate under section 7(e)(1)
of this chapter may not be included in rates unless shown by the
water utility to be necessary and prudent in the construction of the
long haul water pipeline.