§ 8-1-31.6-6 — Water utility plans; nonresponsive property owner; authority of water utility; liability; multi-family residential properties; disconnection of service; approval; ratemaking treatment

Indiana § 8-1-31.6-6

• Jurisdiction: Indiana
• Art. 1: UTILITIES GENERALLY
• Ch. 31.6: Customer Owned Lead Service Lines

Text

(a) As used in this section, "occupant", with
respect to any:
(1) building;
(2) structure; or
(3) dwelling;
that is served by a lead service line, means a person in actual
possession of and residing in or occupying the building, structure, or
dwelling.
(b) As used in this section, "owner", with respect to any:
(1) building;
(2) structure; or
(3) dwelling;
that is served by a lead service line, means a person who has legal title
to the building, structure, or dwelling, as indicated by the property tax
records of the county in which the property is located, or by the account
or other customer or billing records maintained by the water utility with
respect to the property, regardless of whether the person is in actual
possession of and residing in or occupying the building, structure, or
dwelling.
(c) Before a water utility is authorized to include customer lead
service line improvements as eligible infrastructure improvements for
purposes of IC 8-1-31, for a public utility, or for purposes of this
chapter, for a municipally owned utility, the commission must first
approve the water utility's plan for the replacement of the customer
owned portion of the lead service lines within or connected to the water
utility's system. The water utility's plan must address the following:
(1) The availability of grants or low interest loans and how the
water utility plans to use available grants or low interest loans to
help the water utility finance or reduce the cost of the customer
lead service line improvements for the water utility and the water
utility's customers, including any arrangements for the customer
to receive available grants or financing directly.
(2) A description of how the replacement of customer owned lead
service lines will be accomplished in conjunction with
distribution system infrastructure replacement projects.
(3) The estimated savings in costs per service line that would be
realized by the water utility replacing the customer owned portion
of the lead service lines versus the anticipated replacement costs
if customers were required to replace the customer owned portion
of the lead service lines.
(4) The number of lead mains and lead service lines estimated to
be part of the water utility's system.
(5) A range for the number of customer owned lead service lines
estimated to be replaced annually.
(6) A range for the total feet of lead mains estimated to be
replaced annually.
(7) The water utility's proposal for addressing the costs of unusual
site restoration work necessitated by structures or improvements
located above the customer owned portion of the lead service
lines.
(8) The water utility's proposal for communicating with the
customer the availability of the water utility's plan to replace the
customer owned portion of the lead service line in conjunction
with the water utility's replacement of the utility owned portion of
the lead service line.
(9) The water utility's proposal concerning whether the water
utility or the customer will be responsible for future replacement
or repair of the portion of the new service line corresponding to
the previous customer owned lead service line.
(10) The estimated total cost to replace all customer owned
portions of the lead service lines within or connected to the water
utility's system and an estimated range for the annual cost to be
incurred by the water utility under the water utility's plan.
(d) Notwithstanding the terms of a water utility's plan for the
replacement of the customer owned portion of the lead service lines
within or connected to the water utility's system, the following apply to
the owner of a building, structure, or dwelling that is served by a
customer owned lead service line within or connected to the water
utility's system:
(1) Upon request by the water utility, the owner of a building,
structure, or dwelling, other than a multi-family residential
property that contains more than four (4) dwelling units, shall
replace, or cause to be replaced, the customer owned portion of
the lead service line by either of the following methods:
(A) Enrolling in the lead service line replacement program
offered by the water utility and, after enrolling, allowing the
water utility or the water utility's agents to access the owner's
property, at no cost to the water utility, to conduct the
replacement in accordance with the water utility's plan.
(B) Replacing the customer owned portion of the lead service
line through the owner's own agents or contractors and at the
owner's own expense. If the owner elects to replace the
customer owned portion of the lead service line under this
clause, the replacement must be completed not later than
forty-five (45) days after the water utility first communicates to
the owner the availability of the water utility's program to
replace the customer owned portion of the lead service line.
(2) If the owner of a building, structure, or dwelling, other than a
multi-family residential property that contains more than four (4)
dwelling units:
(A) does not enroll in the lead service line replacement program
offered by the water utility;
(B) does not replace the customer owned portion of the lead
service line through the owner's own agents or contractors and
at the owner's own expense within the forty-five (45) day period
described in subdivision (1)(B); or
(C) fails to communicate with the water utility, or is
nonresponsive to the water utility's attempted communications,
regarding the replacement of the customer owned portion of the
lead service line;
the water utility or the water utility's agent may, after the
expiration of the forty-five (45) day period described in
subdivision (1)(B), enter the property to replace the customer
owned portion of the lead service line without having obtained the
permission of the owner with respect to the entry or the
replacement. A water utility, including an agent of the water
utility, that enters an owner's property and conducts a replacement
under this subdivision shall be held harmless by and is not liable
to the owner with respect to the entry or the replacement. If the
property is occupied by an occupant other than the owner, and the
occupant grants the water utility or the water utility's agent access
to the property to conduct a replacement under this subdivision,
the occupant shall also be held harmless by and is also not liable
to the owner with respect to the entry or the replacement.
Notwithstanding the terms of the water utility's plan for the
replacement of customer owned lead service lines, a water utility
that conducts a replacement under this subdivision is not liable
for any property restoration costs necessitated by the replacement
and that exceed five hundred dollars ($500). The owner is
responsible for the completion and cost of any property
restoration work necessitated by the replacement and exceeding
the five hundred dollar ($500) limit set forth in this subdivision.
A water utility that enters an owner's property as permitted under
this subdivision is not liable to the owner for any cost for access
to, or for an easement on, the property.
(3) Upon request by the water utility, the owner of a multi-family
residential property that contains more than four (4) dwelling
units may elect to participate in the water utility's lead service line
replacement program. An owner shall communicate to the water
utility the owner's election to participate in the water utility's
program under this subdivision not later than forty-five (45) days
after receiving the water utility's request. If the owner does not
communicate the owner's election to participate in the water
utility's program within the forty-five (45) day period set forth in
this subdivision, the owner, or any future owner of the property,
is responsible for replacing the customer owned portion of the
lead service line through the owner's own agents or contractors
and at the owner's own expense.
(4) In any case in which the conditions set forth in subdivision (2)
apply and in which the water utility attempts to avail itself of the
remedies set forth in subdivision (2) but is prevented from doing
so by the owner of the property, the water utility may, in
accordance with state law and rules adopted by the commission,
disconnect water service to the property. Before water service
may be restored to the property, the owner must provide the water
utility with proof that:
(A) the owner has enrolled in the water utility's lead service line
replacement program under subdivision (1)(A); or
(B) the customer owned service line has been replaced in
accordance with subdivision (1)(B).
(5) In the case of any:
(A) building;
(B) structure; or
(C) dwelling;
that the water utility has determined, in accordance with any
applicable law, to be abandoned or unserviceable, the water utility
may disconnect water service to the property and require the
owner, or any future owner, of the property to install a new
service line through the owner's own agents or contractors and at
the owner's own expense.
(6) The provisions set forth in this subsection may be
incorporated into a water utility's plan that has been previously
approved by the commission under this section. A water utility
that incorporates the provisions set forth in this subsection into a
previously approved plan is not required to obtain any additional
approval from the commission with respect to the incorporated
provisions.
(e) The commission shall approve a water utility's plan if the
commission finds the plan to be reasonable and in the public interest.
Subject to subsection (f), in general rate cases following the approval
of a public utility's plan, the commission shall for ratemaking purposes
add to the value of the public utility's property for purposes of IC 8-1-2-6 the actual costs incurred by the public utility in replacing the
customer owned portion of the lead service lines and in removing
customer owned lead service lines from service in accordance with the
public utility's plan, notwithstanding the continued ownership of the
service line by the customer.
(f) To the extent a water utility incurs an annual cost under the water
utility's plan in excess of the range set forth in subsection (c)(10) and
approved by the commission under subsection (e), the additional costs
are not eligible for the ratemaking treatment provided for in this section
or in section 7, 8, or 10 of this chapter.

Legislative History

As added by P.L.91-2017, SEC.8. Amended by P.L.137-2020, SEC.4; P.L.32-2021, SEC.17; P.L.6-2024, SEC.3; P.L.1-2025, SEC.121.