§ 8-1-8.5-6.5 — Rates; recovery of costs

Indiana § 8-1-8.5-6.5

• Jurisdiction: Indiana
• Art. 1: UTILITIES GENERALLY
• Ch. 8.5: Electric Utility Resource Planning and Certification

Text

5. Absent fraud, concealment, or gross
mismanagement, a utility shall recover through rates the actual costs
the utility has incurred in reliance on a certificate issued under this
chapter, and as modified under sections 5.5 and 6 of this chapter as
follows:
(1) If a facility has been found to be completed and the facility's
construction has been subject to ongoing review under section
6(a) of this chapter, the costs of construction approved by the
commission during the ongoing review shall be included in the
utility's rate base without further commission review.
(2) If a facility has been found to be completed and the facility's
construction is subject to subsequent review under section 6(d) of
this chapter, the costs of construction that do not exceed the
estimate found under section 5(b)(1) of this chapter shall be
included in the utility's rate base, except for costs that are shown
to result from inadequate quality controls. However, inclusion of
costs in excess of the estimate found by the commission under
section 5(b)(1) of this chapter in the utility's rate base is not
permitted unless shown by the utility in construction of that
facility to be necessary and prudent.
(3) If a facility has been canceled as a result of the modification
or revocation of the certificate under section 5.5 or 6 of this
chapter and the facility's construction has been subject to ongoing
review under section 6(a) of this chapter (including reviews after
cancellation), the costs of construction approved by the
commission during the review shall be recovered by the utility by
inclusion in rates and amortization over a reasonable time to be
determined by the commission. The utility shall be permitted to
earn a return, computed using the utility's authorized rate of
return, on the unamortized balance.
(4) If a facility has been canceled as a result of the modification
or revocation of the certificate under section 5.5 or 6 of this
chapter and the facility's construction is subject to subsequent
review under section 6(d) of this chapter, the costs of construction
incurred before cancellation that were included in the estimate
found under section 5(b)(1) of this chapter and that have not been
shown to result from inadequate quality controls shall be
recovered by the utility by inclusion in rates and amortization
over a reasonable time to be determined by the commission. The
utility shall be permitted to earn a return, computed using the
utility's authorized rate of return, on the unamortized balance.
However, costs that were not included in the estimate found by
the commission under section 5(b)(1) of this chapter may not be
included in rates unless shown by the utility in construction of
that facility to be necessary and prudent.

Legislative History

As added by P.L.53-1992, SEC.7.